The current situation of the company
Easy special released the annual results of KuaiBao, operating income rose 42.4% year-on-year to 5.245 billion yuan, net profit attributed to the parent company increased 69.0% year-on-year to 472 million yuan, slightly higher than expected. The high growth of the company's performance is mainly due to the explosive growth of photovoltaic system integration products and the increase in power generation revenue of photovoltaic power stations, as well as the investment income generated by the transfer of Jiangnan integrated equity. In addition, due to the expansion of revenue, the company expense rate has declined accordingly.
Comment
The photovoltaic industry promotes high performance growth. The rapid development of the photovoltaic industry in 2016 prompted the company to achieve rapid growth in photovoltaic system integration business income. In addition, the company vigorously developed the photovoltaic power station operation. The revenue of the power station reached 52.95 million yuan in the first three quarters, contributing to the performance increment.
The performance elasticity of the rechargeable pile plate increased in 2017. The subsidy policy for new energy vehicles has been introduced, and the industry will resume high growth after a short pause in 2016. The production and sales volume of new energy vehicles will accelerate investment in charging facilities around the country, and the company's charging pile sector is expected to see explosive growth in 2017.
High-end power supply and data center business growth is solid. The company had previously invested in Guo Fu Guangqi to expand its IDC and cloud computing businesses. The equity acquisition agreement stipulates that in the construction of IDC computer rooms between 2016 and 2020, Guo Fu Guangqi will purchase no less than 200 million yuan of equipment from EasTech in 2016, no less than 400 million yuan in each of the following four years, and no less than 2 billion yuan in five years. The future growth of the UPS and data center sectors is guaranteed.
The short-term performance contribution is limited in the transformation from equipment manufacturing to operation service strategy. The company has developed a strategy for the development of smart energy and smart city business in three areas: photovoltaic power generation, data center and charging services. At present, the company has nearly 300MW photovoltaic power stations connected to the grid, and the future new power stations will also sell suitable power stations to accelerate revenue recognition; in addition, the company will actively promote the construction and operation of data centers, charging stations and intelligent parking garages.
In the future, operational services will become a point of performance growth, but the contribution of performance in the short term is limited.
Valuation proposal
Based on the performance, KuaiBao raised the 2016 EPS forecast for 17 years from 15% to 0.82 Plus 0.94 yuan, and introduced the 2018 forecast value of 1.12 yuan. After a sharp rise in the company's stock price, the current valuation is still high in the historical valuation range, and we maintain our target price of 44.50 yuan, corresponding to 47x Pmax E in 2017, maintaining a "neutral" rating.
Risk.
Photovoltaic industry power restrictions and electricity price subsidies are reduced; production and sales of new energy vehicles are lower than expected.
