Key points of investment
New installed capacity is growing steadily, and downstream EPC has great potential. The company is a global turnkey provider of photovoltaic equipment and EPC. It mainly targets the three major markets: China, Japan and Australia. It is expected that the number of new PV installations in several major markets will continue to grow steadily in the future. Due to intense competition for midstream equipment, the transformation to downstream EPC turnkey is an industry trend.
Established equipment manufacturer, EPC general contractor rookie. Relying on the advantages of the photovoltaic bracket business, the company entered the EPC general contracting of photovoltaic power plants in 2013, and currently accounts for more than 50% of the revenue. At present, the company has built and operated 4 photovoltaic power plants to generate electricity, 3 photovoltaic power plants are in the construction stage, and 9 photovoltaic power plants in the early development stage are advancing normally. A reasonable echelon for the early development stage, construction stage, and operation power generation stage has been formed. In March 2017, the board of directors plans to invest in 44 photovoltaic power plant projects, with a total investment of 1,283 million yuan, with an estimated total installed capacity of 179.90 MW and an average annual power generation capacity of 177.622,200 kilowatts. If most of them are successfully implemented, it is expected to rapidly increase the share of the company's total PV power plant package market and help the company grow bigger and stronger quickly.
The photovoltaic bracket business has been steadily shrinking, and its products are selling well all over the world. The company created an “international market+localized service+made in China” business model, drastically reduced costs, and produced and sold products globally. As the company's focus shifted to the EPC business in 2015, the revenue of the photovoltaic bracket business declined somewhat, and the future will follow the steady growth of the installed equipment market.
Profit forecast: We believe that the company will benefit from the rapid expansion of the photovoltaic power plant EPC business. The EPS in 16-18 was 0.31, 0.43, 0.53 yuan, and the corresponding PE was 137, 98, 78 times, covered for the first time, and given a neutral rating.
