Event: the company released its 2016 annual report: in 2016, the company achieved operating income of 1.398 billion yuan, an increase of 6.98% over the same period last year, and the net profit belonging to shareholders of listed companies was 111 million yuan, an increase of 3.11%, equivalent to 0.33 yuan per share, down 6.08% from the same period last year.
Of this total, the operating income in the fourth quarter was 478 million yuan, an increase of 23.41 percent over the same period last year, and the net profit belonging to shareholders of listed companies was 21 million yuan, down 57.49 percent from the same period last year, equivalent to 0.053 yuan per share, a decrease of 76.75 percent.
Comments:
Give full play to the operational advantages of "product + service + investment", and the investment layout is carried out in an orderly manner. The company's lower-than-expected performance in 2016 is mainly due to the fact that the company's new business is still in the investment deployment period. In October 2016, the company's subsidiary Zhiguang Energy Saving won the bid "Shanxi Huaze Aluminum Power Co., Ltd. 2 × 300MW turbine turbine modification contract energy management project", which is expected to share the total energy saving income of 156 million yuan during the 6-year sharing period. In terms of incremental distribution network, Zhiguang Power Investment and Guangxi Rongkai Huayuan Electroplating Industrial Park Investment Co., Ltd. and other partners established Guangxi Zhiguang Rongkai Electric Power Co., Ltd., to build and operate the power equipment and facilities in Guangxi Liuzhou Automobile City Electroplating Industrial Park, in order to give full play to the company's comprehensive advantages on the user side, the construction project will begin in the second quarter of 2017. In terms of industrial extension investment, the company and Zhiguang Power Investment acquired a 60% stake in Guangzhou Huayue Electric Power Engineering Design Co., Ltd., effectively replenishing the company's relevant qualifications and talents in the field of power design and engineering general contract. Enhance coordination with the main business and promote the development of existing business to achieve a natural extension of the industrial chain. In terms of energy-saving business investment, Zhiguang Energy-saving has increased its capital to Sichuan Dianshi Energy Co., Ltd., and strengthened all-round business cooperation to further enhance its comprehensive competitiveness and market influence in the field of energy-saving services.
Zhiguang Comprehensive Energy Industry Park will be completed and used to enhance its service capacity in the future. Zhiguang Comprehensive Energy Industry Park was completed and put into use at the end of 2016, and the overall business environment and basic conditions of the company have been greatly improved. The industrial park will serve as a platform for multi-level interaction in the field of integrated energy, it is committed to the research, test and industrialization of integrated energy system technology, such as dynamic model test of integrated energy system, solar energy application technology, energy storage technology, mobile energy, natural gas distributed energy and so on. At the same time, through the introduction, cooperation, joint ventures and other flexible ways to integrate new products, new technologies and new applications in related fields to further expand the business area of the company.
The company is based in Guangzhou and has the advantages of regional initiative and expansion. At present, the promotion speed of the southern power network reform is faster than that of the national power grid, and Guangdong Province is in the vanguard of the southern power network reform. Headquartered in Guangzhou, Guangdong Province, the company enjoys a greater geographical advantage in developing electricity service business. At present, the company's power service area is still expanding at an accelerated pace, and we expect the company to build a power service network covering the five provinces of the southern power grid in 2018.
The company continues to strengthen its electricity service. The company's newly established electricity service companies in Kunming and Foshan, as well as Guangzhou, Zhaoqing, Shantou, Jiangmen, Dongguan and Nanning have set up electricity service companies to extensively carry out power transportation and trusteeship services and engineering construction services. microgrid and distributed energy services are also developed in an orderly manner. At present, four monitoring centers located in Guangzhou, Shantou, Nanning and Jiangmen have been put into operation. At the same time, the company actively develops the electricity sales market, and Guangdong Province has made a breakthrough in "from 0 to 1". In July 2016, it obtained an access list, and in 2016, it sold nearly 300 million kilowatt-hours of electricity on behalf of users, and has a strong bidding trading ability. at present, it has signed more than 400 million kilowatt-hours of electricity in 2017 and is expected to sell nearly 1 billion kilowatt-hours of electricity for the whole year of 2017. Guangxi Zhiguang Electric Power sales Co., Ltd., established in December 2016, quickly entered the Guangxi Zhuang Autonomous region electricity trading market in January 2017, signing that the electricity capacity of the long Association in 2017 exceeded 400 million kilowatt-hours.
Earnings forecast and rating: we expect the company's EPS in 2017, 2018 and 2019 to be 0.37,0.45,0.58 yuan respectively, and the PE corresponding to the closing price (16.77 yuan) on April 25, 2017 is 46,37 and 29 times, respectively. In view of the accelerated expansion of the company's electricity services, as well as continuous innovation in cloud platforms, energy Internet and other areas, we maintain the company's "buy" rating.
Stock price catalyst: the electricity reform is advancing faster than expected; the company's electricity service layout is faster than expected; and the company has made great achievements in energy, Internet and other fields.
Main risks: the speed of electricity reform is not as fast as expected; the distribution of electricity services of the company is not as fast as expected.