Main points of investment:
Maintain the target price of 18.04 yuan and the "overweight" rating. The strategic cooperation framework agreement signed with Shanxi Industrial equipment installation Co., Ltd. is the Pingyao 100MW wind power + 300MW new energy project invested and developed by Shanxi Shan an Maude Solar Technology Co., Ltd., a wholly owned subsidiary of Shanxi installation. This is conducive to the transformation and development of the company's clean energy business. As it is only a framework agreement, the degree and pace of profit contribution can not be grasped for the time being.
At present, we do not consider the impact of this cooperation on net profit and maintain the previous forecast that the company's 16-18 net profit is expected to be 4.50 shock 5.92 / 748 million yuan, corresponding to an EPS of 0.82 pounds 1.07 pounds 1.36 yuan respectively. Maintain the target price of 18.04 yuan and "increase the holding" rating.
New energy business has entered a period of explosive cross-regional expansion: this cooperation agreement is another cooperation project since the company signed a new energy cooperation agreement with Shanghai Aviation Industry and SPIC Sichuan Co., Ltd. in recent years, the company has rapidly expanded its clean energy business outside Hebei through cooperation with local governments, state-owned enterprises and units within the group. At present, the business expansion has covered Hebei, Beijing, Tianjin, Shanxi, Inner Mongolia, Shaanxi, Shandong, Gansu, Sichuan, Shanghai and other provinces and cities.
The 2017-2018 company will usher in the peak of production of the project, which will lay a solid foundation for the company's profit growth in the future.
The company will benefit greatly from the mixed reform of the power industry and SPIC: the market lacks awareness of the company's strategic position in SPIC, and the company, as SPIC's only listing platform in Beijing, Tianjin, Hebei and the Bohai Rim, will greatly benefit from the acceleration of mixed reform in the power industry. SPIC recently frequently listed assets as a key task in 2017, and the asset injection process of Hebei Company will be faster than the market expected. In addition, according to our incomplete statistics, the installed capacity of new energy assets in Beijing, Tianjin, Hebei and the Bohai Rim exceeds 2300MW, and the project reserve exceeds 5000MW.
These potential resources may become the target of integration in the process of further asset securitization.
Catalyst: Hebei company asset integration plan, SPIC mixed reform plan details issued.
Core risk: SPIC Hebei company asset integration progress did not meet expectations.
