In 2012, the company's main business improved greatly, with a net profit of 62 million yuan, and successfully turned losses into profits. In March this year, the company completed the acquisition of high-quality power assets of Tong Coal Group, which has become an integrated platform for coal and power in Shanxi Province. we believe that the company has expanded rapidly, has outstanding long-term value, and maintains a "highly recommended-A" investment rating with a target price of 6.0 yuan.
In 2012, earnings per share reached 0.05 yuan, basically in line with expectations. In 2012, the company achieved a main business income of 4.94 billion yuan, an increase of 20.3% over the same period last year; the main cost was 4.79 billion yuan, an increase of 4.8% over the same period last year; and the net profit belonging to shareholders of listed companies was 62 million yuan, an increase of 107.9% over the same period last year, with a discount of 0.05 yuan per share. The company has successfully turned a loss into a profit. The company has applied to revoke the stock trading delisting risk warning and take off its cap soon.
The main business has greatly improved, and non-operating income has helped to reverse losses. In 2012, the company completed 16.7 billion kilowatt-hours of electricity generation, an increase of 18.6% over the same period last year. Coupled with the increase in electricity prices, the operating income increased by 20.3%. At the same time, due to the sharp drop in thermal coal prices, the company's fuel costs rose by only 3%. As a result, the profit of the company's main business has been greatly reduced, and the net profit attributable to non-deduction is-410 million yuan. In addition, a lot of non-operating income has been reaped, receiving 170 million yuan in government subsidies and 255 million yuan in power generation targets to help the company turn around its losses.
The main business has made a profit in the fourth quarter, and the performance is expected to be good. In the fourth quarter, benefiting from the decline in thermal coal prices, the company's gross profit margin returned to 7.3%, realizing an attributable net profit of 170 million yuan, of which the company lost 90 million yuan in that quarter due to changes in Japanese yen swaps. In addition, the company's non-operating income in that quarter was 190 million yuan. If these factors are not taken into account, the company's main power business has achieved a profit of about 70 million yuan. At present, the company's coal-fired prices are already low, and the company's power business profits will still improve in 2013.
The installed scale has increased greatly and has a broad development in the future. In March, the company completed the acquisition of high-quality power assets of Tong Coal Group, with a total installed capacity of 6.93 million kilowatts, doubling its scale. It is estimated that by the end of the 12th five-year Plan, the company's total installed capacity will reach more than 1300 kilowatts, and strive to reach 20 million kilowatts, accounting for 1/3 of Shanxi thermal power installed, with an annual generating capacity of more than 80 billion kilowatt hours.
Maintain the "highly recommended-A" investment rating: we predict that the company's EPS for 13-14 years will be 0.31 yuan and 0.41 yuan respectively. We believe that the integrated operation of coal and power will greatly increase the company's profitability. With the increase of local government support to the company, the company is expected to become a leader in local power companies and large market capitalization companies. It is recommended to pay attention to the long-term value of the company and maintain the "highly recommended-A" investment rating. Target price 6.0 yuan
Risk tips: coal costs rebounded higher than expected, installed capacity expansion speed is lower than expected.
