Events: on April 17, the company released the 2016 Annual report, which pointed out that the net profit of 2016 attributable to the owner of the parent company was 129 million yuan, an increase of 314.38% over the same period last year, and operating income was 1.142 billion yuan, an increase of 56.81% over the same period last year. Basic earnings per share was 0.21 yuan, an increase of 320.00% over the same period last year.
Comments:
Station layout acceleration. The company closely follows the national policy, the photovoltaic power stations invested in the construction of photovoltaic power stations have been connected to the grid one after another, the power generation revenue has increased significantly, and the revenue of the power plant has made a significant contribution to the profit growth of the company. At present, the company has been connected to the grid 240MW ground power station, electricity price range of 0.95-1 yuan, especially in 2015 grid-connected 130MW power station generation is relatively stable, power station income has played the role of ballast stone and Poseidon needle to the company's performance, and laid a solid foundation for future performance. In 2016, the company responded positively to the national policy call to vigorously develop clean energy and accelerated the layout of the domestic photovoltaic market. In terms of grid connection of ground photovoltaic power stations, Qinghai Touri realized 30MWp power stations connected to the grid; in addition, Qinghai Touri formed a consortium with central and state-owned enterprises such as Huaneng Qinghai Company and Qinghai Green Power Group, and won the bid for Qinghai Golmud Photovoltaic Industrial Park 50MWp and 20MWp photovoltaic power station projects respectively. The gross margin of electricity revenue is as high as 62.11%.
The company will give priority to the development of surface power stations in the future, and will gradually achieve the goal of grid-connected 1GW photovoltaic power stations in 3-5 years. In addition, the company will also quickly distribute distributed power stations, focusing on the development of photovoltaic poverty alleviation projects in response to the national call for poverty alleviation, and has also signed cooperation agreements with a number of poverty alleviation counties.
The development of power plant and the expansion of components contribute to the high growth of performance throughout the year. The company accelerated the scale expansion of its core products in 2016, upgrading and strengthening the product structure, industrial chain layout and optimal allocation of resources. While the company has developed steadily, it has seized the market opportunity of the photovoltaic industry, increased the sales of components, and increased its year-on-year sales revenue and operating income by a large margin.
According to the company's previously disclosed plans, the company will achieve module capacity for 1GW and photovoltaic glass capacity for 2GW in 2016. According to the annual report, revenue from crystalline silicon batteries and components increased by 78.33% in 2016.
Another fashion rush and the development of "Belt and Road Initiative" are conducive to the improvement of the company's performance. With the release of the consultation draft for the reduction of new energy electricity prices by the National Development and Reform Commission, and the upcoming formal draft, it is expected that the rush to install the power plant will further accelerate before June 30, 2017, which is conducive to the significant improvement of the company's performance. In 2017, the company made great efforts to change the previous domestic sales model of single products, while consolidating existing customers, carrying out multi-mode sales or strategic cooperation with large central enterprises and state-owned enterprises. In terms of international sales, while maintaining the original European and American markets, with the continuous deepening of "Belt and Road Initiative", we will continue to develop South Asia, the Middle East, Africa, especially India, Pakistan, Saudi Arabia and other markets.
Profit forecast. In the context of the continuous release of supportive policies and technological progress in the photovoltaic industry, the scale of the company's power station continues to expand, the business structure is further optimized, and the performance enters the channel of sustainable growth. The forecast company's EPS for 2017-2018 is 0.29,0.36 respectively, giving it a "buy" rating.
Risk hint
The company's photovoltaic power plant operation is not up to expectations, and the new energy policy has changed.