The performance increased year on year: in 2012, the operating income was 3.8 billion yuan, down 13.8% from the same period last year, the operating profit was 58.85 million yuan, an increase of 81.67 million yuan over the same period last year, and the total profit was 50.84 million yuan, an increase of 104.2% over the same period last year. The net profit attributed to the owner of the parent company was 43.12 million yuan, up 163.7% from the same period last year, and basic earnings per share was 0.07 yuan. Among them, the operating income in the fourth quarter decreased by 24.3% compared with the same period last year, the net profit attributed to the owner of the parent company decreased by 61.4% compared with the same period last year, and the basic earnings per share was 0.1 yuan.
The decline in electricity affects the company's performance: the main reason for the increase in the company's performance is that after the sale of the equity stake in Zhengzhou Xinli, a loss-making joint venture last year, the investment loss in the current period decreased significantly (investment income increased by 48.32 million yuan compared with the same period last year) and coal prices decreased year-on-year (gross profit margin increased by 2 percentage points). Despite the increase in electricity prices, due to the slowdown in social power consumption and the further increase in power generation capacity in Henan Province, the company's electricity generation fell 19.1% in 2012 compared with the same period last year, which was the main reason for the decline in operating revenue from the same period last year, affecting the company's performance. The company's operating income decreased by 12.0% in the fourth quarter from the previous quarter, and the net profit attributed to the owner of the parent company decreased by 10.8% compared with the previous quarter. It is speculated that the main reason is that the company does not have thermoelectric units, and electricity consumption decreased in the fourth quarter due to the impact of heating.
Investment advice: due to the slowdown in social electricity consumption and the increase in power generation capacity in Henan Province, the company's hourly utilization will decline further in 2013, but it is expected that the decline will be less than the decline in basic electricity generation issued by Henan Development and Reform Commission. At the same time, the company's average coal price will also drop sharply in 2013 compared with the same period last year, and being more sensitive to coal prices will lead to a significant increase in the company's performance in 2013. In terms of excluding the expected asset injection and custodian fees, the company's EPS is expected to be 0.35,0.33 and 0.35 yuan respectively from 2013 to 2015, corresponding to 13.3,13.8 and 13.2 times PE, maintaining the "buy-A" investment rating with a six-month target price of 6 yuan.
Risk hint: the electricity price of the first-phase power station is reduced; the utilization hour drops sharply; the decline of coal price is lower than expected, etc.
