The company released its first quarterly report in 2016. From January to March, the company achieved a cumulative operating income of 357 million yuan, an increase of 58.32% over the same period last year. The net profit attributed to the parent company was 22 million yuan, an increase of 164.97% over the same period last year, and the profit per share was 0.02 yuan.
The sales of photovoltaic modules increased and the amount of bad debts decreased in the first quarter.
2016Q1's revenue and net profit belonging to the parent company increased by 58.32% and 164.97% year-on-year. Since the company did not sell its own photovoltaic power station to connect with the new photovoltaic power station and acquired during the reporting period, it is expected that all the increase in revenue in January-March will come from the sales of photovoltaic module products. In the same period, benefiting from the decrease in the total amount of bad debts, the impairment loss of the company's assets was-11 million yuan, which was 24.3 times lower than that in the same period of 14 years.
The gross profit margin fell, and the expense rate decreased significantly during the period.
During the reporting period, due to the rise in the prices of products such as photovoltaic glass and the further decline in the average price of components, the company's comprehensive gross profit margin fell 2.31 percentage points to 14.80% compared with the same period last year. In terms of period expenses, the company's sales and management expenses were the same as in the same period last year. With the increase in revenue scale, the sales expense rate dropped sharply to 1.44, while the management expense rate fell 5.42 percentage points to 14.17%. The financial expense rate benefited from the appreciation of the euro, which fell sharply by 22.67 percentage points to-1.50%.
Start directional additional issuance and lay out distributed photovoltaic power generation projects in Zhejiang Province
Zhejiang Province is one of the provinces with the strongest subsidy and the largest installed scale of distributed photovoltaic projects in China, and the 15-year distributed photovoltaic grid-connected project has broken through 1GW. At the same time, it is planned to achieve the goal of 8GW installed in the province by 2020. The company plans to raise no more than 1.25 billion yuan by issuing no more than 400 million shares, of which about 975 million yuan is used to invest in the 120MW distributed photovoltaic grid-connected power generation project, and about 275 million yuan is used to supplement the company's working capital. The company has signed framework agreements with 32 companies in Zhejiang Province, including Guxiandao New Materials Co., Ltd., using the idle roof of their existing factories as the construction site for the directional additional 120MW distributed photovoltaic investment project, with a total installation area of about 1.56 million square meters. The construction cycle of the whole project is planned to be 1.5 years. After reaching production, the average annual power generation is about 110 million kwh, the average annual net profit is about 70 million yuan, and the rate of return on project investment is 11.77%.
Profit forecast
It is estimated that the company's net profit for 2016-2018 will be 168 million yuan, 207 million yuan and 271 million yuan respectively, and earnings per share will be 0.15,0.19 and 0.24 yuan respectively, with a year-on-year growth rate of 91.7%, 23.4% and 30.5%, and a corresponding price-to-earnings ratio of 36 times, 29 times and 22 times respectively.
Risk tips: 1) the development of the photovoltaic industry in the second half of the year is lower than expected; 2) the progress of the company's distributed photovoltaic power station project is slow.