Summary of the report:
The company's annual report released revenue of 1.293 billion yuan, YOY 94.86%, net profit of 121 million yuan and YOY 76.98%. At the same time, the announcement set up an electric vehicle joint venture operation company and a recharging service company with a time-space electric vehicle subsidiary, contributed 20 million yuan to participate in Beijing Zhongneng Interconnection Power Investment Center, and raised 400 million yuan to carry out the EPC project of photovoltaic power station.
Create a "design-EPC- equipment-operation" platform in the power field, and achieve closed-loop in the new energy and distribution network subdivision areas. The acquisition of Huawang Electric Power has the qualification of Class A for power transmission and transformation and Class B for new energy; the company's high-voltage switchgear is growing steadily and its product categories are constantly enriching; Hunan Changgao Distribution Power Company has been established and Hunan electric power reform has been set up; shares in professional distribution network investment industry funds have broken through regional restrictions in project search. This year, it will undertake the general contract of Hebei 16MW photovoltaic power station, focusing on the development of rooftop distributed solar power stations and wind power projects, with a 70% equity mortgage loan of 400 million yuan for the construction of photovoltaic power stations. It is estimated that the scale of new energy EPC may reach 100MW this year. Signing framework agreements with Guokai New Energy and other three new energy investment companies can ensure that photovoltaic power stations will be built and sold on time.
To create a "product-operation" platform for new energy vehicles has the trend of industrial chain layout in the field of new energy vehicles. Subsidiary Hangzhou Bogao develops and produces high-voltage power distribution assemblies for electric vehicles, and Hangzhou Fute Technology participates in the research and production of charging piles. At present, the income scale of these two companies is not high, and they have not been fully mobilized for the time being. At the same time as the annual report, the company issued an announcement to set up an electric vehicle joint venture operation company and a recharging service company with a time-space electric vehicle subsidiary, mainly for taxi and ride-hailing operations. The company began to focus on the field of new energy vehicles, and there is plenty of room to imagine.
Performance forecast: the estimated revenue from 2017 to 2019 is 15.19,19.81 and 2.361 billion yuan, the net profit is 1.53,1.91 and 231 million yuan, and the EPS is 0.29,0.36,0.44 yuan per share. The 2017 results correspond to 28.29 times the current share price PE. Consider the company in the new energy EPC growth, optimistic in the incremental distribution network operation, new energy vehicle operation landing, maintain the "buy" rating.
Risk Tip: market risk; switch product sales, new energy EPC, distribution network and new energy vehicle operation are not as expected.