Summary: 15 years revenue slightly increased, net profit declined; the main electricity and water supply growth is weak. It is predicted that as 16 years is a bumper year, the performance will improve slightly. The key points are as follows: (1) the reform of state-owned enterprises is expected; (2) Vanadium Mine has a rich water year in 32016.
From the perspective of income structure, the company has three businesses: electricity, tap water and construction services. Of the 1.27 billion revenue, 78% of the electric power contributed 990 million yuan, an increase of 3.84% over the same period last year, and the gross profit margin of the products was 14.73%, a decrease of 3.62% over the same period last year. (comments: it is predicted that the electricity consumption of the whole society will decrease slightly in 16 years; the incoming water is expected to be abundant, which is good for the hydropower business). Tap water, which accounts for 8.6% of the main business, contributed 109 million yuan in revenue, an increase of 1.88% over the same period last year. The gross profit margin of the product was 25%, an increase of 0.48% over the same period last year. (comments: the water supply business in Suining has been basically monopolized, and it is predicted that it will remain basically unchanged for 16 years.) the revenue contributed by construction services was 157 million yuan, down 10.34% from the same period last year, and the gross profit margin was 8.71%, an increase of 0.88% over the same period last year. There is no obvious contribution to the vanadium mine business.
Key data of the annual report: operating income reached 1.268 billion yuan in 15 years, an increase of 1.85% over the same period last year; net profit belonging to shareholders of listed companies was 89.0852 million yuan, down 8.62% from the same period last year; net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 81.3198 million yuan; net cash flow from operating activities was 206 million yuan, an increase of 13.11% over the same period last year. EPS is 0.27 yuan, down 10% from the same period last year.
Why is the net profit of eps/ declining? Although the operating income has increased slightly, the increase in the cost of Star Power is even greater, mainly due to the reduction of the company's self-generation and the increase in the cost of purchasing electricity. On the other hand, the maintenance cost of water pipe network has increased significantly in the past 15 years.
The reform of state-owned enterprises is expected: "Sichuan state-owned enterprise reform plan" and "Sichuan state-owned enterprise reform plan list schedule" have been issued one after another, and there is a trend of acceleration. It is mentioned that: support the restructuring of state-owned enterprises with similar industries, related industries and the same main industries through mergers, transfers, mergers and acquisitions and other ways. The listed companies of Sichuan Electric Power Company may retain a power asset platform, and other listed companies may withdraw by means of market-oriented operation. In addition, Qianhai Life Insurance's sign also shows that the capital market is optimistic about the reform of star state-owned enterprises.
The company has rich reserves of vanadium ore resources and great potential. The company controls 100% of Aoshengda Mining Company (Sichuan Huiming Mining and Shaanxi Golden Dun Highway Construction Investment Company). The ore resources of Yangwa Vanadium Mine in Shanyang County are 9.738 million tons and the resources of vanadium pentoxide are 73315 tons. Based on the lowest price of 100000 per ton in the international market, the value of the mineral resource is 7 billion. At present, the vanadium mining business has not yet contributed profits, and the follow-up is worth looking forward to.
Valuation and financial forecast: the operating income of the company in the next three years is expected to be 14.43,15.90 and 1.731 billion yuan respectively, the net profit belonging to the parent company can reach 1.18,1.24,129 million yuan, and the EPS is 0.36,0.38,0.40 yuan respectively. Increase the rating. Risk hints: integration risk, intensified competition in the industry, etc.