Event: China Road shares announced that it intends to invest RMB 10 million to set up a wholly-owned subsidiary Haian Middle Road High-altitude Wind Power Generation Co., Ltd., to build a 400MW high-altitude wind power station in Haian County, Jiangsu Province, to carry out the preliminary preparation and examination and approval of the high-altitude wind power station. The overall investment of the project is planned to be 2 billion yuan.
Maintain the "overweight" rating and the target price of 75.4 yuan. We believe that China Road will benefit from the dual catalysis of the Shanghai Walt Disney Company theme and the high-altitude wind power project. After landing in Jixi, Anhui Province (with an investment of 1 billion yuan), the high-altitude wind power project reached an intentional cooperation with Jiangsu Haian (2 billion yuan). The project was promoted in an orderly manner and favored by the local government. We maintain our original profit forecast and estimate that the company's net profit for 2015-2016 will be 115,000,000 yuan, corresponding to EPS0.36/0.43 yuan. Maintain the "overweight" rating and the target price of 75.4 yuan.
High-altitude wind power generation projects will be carried out in an orderly manner. 1) A fixed increase plan was issued in December 2014, with a fixed increase of no more than 2.5 billion yuan. 2) the 2.5MW high-altitude wind power demonstration plant project in Wuhu has carried out 9 power generation operations from May 4 to July 12, 2015 at an altitude of 132m ~ 488m. 3) in July 2015, Wuhu Middle Road was renamed Jixi Middle Road High-altitude Wind Power Generation Co., Ltd., and was relocated to Jixi County, Anhui Province, with an initial planned investment of RMB 1 billion. 4) to reach an intentional cooperation with Jiangsu Hai'an, with a planned investment of 2 billion yuan.
Zhonglu high-altitude wind energy project is supported by a number of local governments, which verifies the feasibility of high-altitude wind power generation from the side. We estimate that the company's high-altitude wind power generation project will make some breakthroughs in the second half of the year, laying the foundation for the company's development to find new performance growth points.
Walt Disney Company and high-altitude wind power generation double catalysis in the second half of the year. We continue to be optimistic about the development prospects of high-altitude wind energy projects and commercial complex projects promoted by China Road shares in an orderly manner. In addition to high-altitude wind energy, Shanghai Walt Disney Company will usher in the announcement of the opening time of the park, trial operation, formal opening and other themes. The company plans to develop the Walt Disney Company commercial complex project with 700mu of land. we believe that China Road will become one of the main beneficiaries of the completion and opening of Shanghai Walt Disney Company Paradise.
Risk hint: the progress of high-altitude wind energy and commercial complex projects is lower than expected.