Layout of incremental distribution network and high voltage equipment leader for core parts of new energy vehicles
The company's traditional product line extends vertically, with the acquisition of Yaneng Senyuan in 15 years to open medium and low voltage switches and complete sets of markets, independent research and development of 252kV GIS into the field of high-end high voltage switches; at the same time, around the main business layout of energy comprehensive operation, the acquisition of Huagang Electric Power has obtained the capacity of power station design and distribution network master package, and set up a distribution company to actively participate in the regional incremental distribution network market. In addition, the company independently developed the high-voltage power distribution system assembly of new energy vehicles and invested in Fute technology, the leader of vehicle chargers, which has formed a first-mover advantage in the field of high-voltage power distribution components of new energy vehicles. Relying on the advantages of high-voltage switch technology, the company has gradually completed the two-way extension of energy integrated service providers and core parts suppliers of new energy vehicles.
Endogenesis and extension to expand the power grid equipment market and benefit from the liberalization of distribution network sales market
In 2016, the company completed the merger and acquisition of Huagang Power with 300 million yuan in cash, obtaining new energy, distribution network design capacity and EPC qualification, combined with traditional medium and high voltage primary equipment products to realize the layout of the incremental distribution network market. The document issued by the Energy Bureau in 16 years clearly defines that the distribution network of the 100-300kV park belongs to the incremental distribution network market, which is expected to bring about 50 billion investment space every year. The company will set up a power distribution company at the right time to seize the probability of opening up the market of the incremental distribution network, which is expected to seize the first opportunity in the reform process of the electricity sales market in Hunan and other regions.
New energy EPC opens up a new space for development and provides stable cash flow
In 15-16 years, the company completed a cumulative grid-connected 90MW of Hebei and Shaanxi photovoltaic projects, with a cumulative income of more than 500 million yuan; at the end of the 16th, it signed cooperation agreements with mainstream owners of new energy, such as BOE New Energy, Guokai New Energy, and China-Guangzhou Nuclear Industry Fund, and will shift to distributed photovoltaic and wind power EPC business. The company's traditional primary and secondary equipment products can provide most of the auxiliary equipment of new energy EPC, which effectively reduces the cost of EPC and improves the company's competitiveness in the EPC market.
Layout of high-voltage power distribution assembly, investment in vehicle charger enterprises to build a complete automotive high-voltage industrial chain Hangzhou Bogao has become one of the first echelon suppliers of high-voltage distribution assembly in China with the help of the company's technical advantages in the field of high voltage. Has established a stable supply relationship with Zhongtai, Tongjia, Lifan and other mainstream mainframe factories. With the gradual repair of the new energy vehicle market and the rapid approval of the catalogue of special-purpose vehicles and passenger vehicles, the revenue and profit of high-voltage distribution assembly is expected to increase significantly. In addition, the company shares 16% of the car charger first echelon enterprise Fute Technology is expected to declare IPO, improve the industrial layout while bringing investment income. The leader of the incremental distribution network and the electric vehicle market, covering the "buy" rating for the first time
It is predicted that the operating income of the company from 2017 to 2019 is 17.58,22.65 and 2.924 billion yuan respectively, an increase of 36%, 29% and 29% respectively over the same period last year; the net profits belonging to shareholders of listed companies are 1.71,2.01 and 262 million yuan respectively, an increase of 42%, 17% and 30% over the same period last year; the realization of EPS is 0.33,0.38,0.50 yuan. Considering that the company's extension and endogenous expansion of business has a strong synergy, and can effectively make use of the existing production capacity and reduce costs, the 17-year valuation of 35-40 times PE is given, corresponding to the target price range of 11.55-13.20 yuan, and the "buy" rating is given for the first time.
Risk tips: the decline in the growth rate of power investment leads to a decline in high-voltage switch orders, the sales growth rate of new energy vehicles is not up to expectations, affecting upstream parts sales, and the growth rate of wind power photovoltaic capacity is declining.