The reorganization of the company's assets has been completed. at present, the total installed capacity of the company has reached 6.93 million kilowatts, which has become the integrated platform of coal and power in Shanxi, and is expected to double at the end of the 12th five-year Plan. We believe that over time, the company will become the leader in local power companies and large market capitalization companies, maintaining the "highly recommended-A" investment rating with a target price of 6.0 yuan.
Asset restructuring has been completed, and supporting financing has been actively promoted. The transaction mainly consists of two parts: 1) to issue 680 million shares to Tashan Power Generation, 95% of Tonghua Power, 60% of Wangping Power, 88.98% of Datang Thermal Power, with a transaction value of 2.41 billion yuan. At present, the delivery of these assets has been completed; 2) the issuance of shares to no more than 10 specific investors to raise supporting funds of 800 million yuan is still under active promotion.
Build a coal-power joint venture platform, greatly improve the profitability. This major asset reorganization is a demonstration project for Shanxi to realize the joint reorganization of coal and electric power enterprises and to build the integration of coal and power in Shanxi. The injected power plants are all Kengkou power plants, which reduce the cost of coal logistics, ensure coal supply and utilization hours, and have outstanding profitability, which will greatly enhance the profitability and competitiveness of the company. In addition, according to the arrangements of the Shanxi provincial government, the provincial development and reform commission will actively support the company in building a Kengkou power plant in the coal source base and building a coal-power joint venture platform.
The installed scale has increased greatly and has a broad development in the future. After the completion of this reorganization, the company's total installed capacity reached 6.93 million kilowatts. Taking into account the company's existing power projects under construction, waiting for construction and having obtained "road strips", it is estimated that by the end of the 12th five-year Plan, the total installed capacity of the company will reach 120 to 15 million kilowatts, and the installed scale will double again, accounting for the installed capacity of Shanxi thermal power plant.
The fundamentals have improved greatly, and taking off the hat is just around the corner. Benefiting from the increase in electricity prices and the sharp fall in thermal coal prices, the company's fundamentals have improved significantly in 2012, and its main power generation business has made a profit. in addition, the company has also sold inefficient assets to win government support, obtained a large number of investment income and financial subsidies, and successfully turned losses into profits for the whole of 2012.
Maintain the "highly recommended-A" investment rating: we predict that the company's EPS for 12-14 years will be 0.06,0.31 and 0.41 yuan respectively. If the company's transformation is successfully completed, the probability of exceeding expectations in 2013 is high. We believe that the integrated operation of coal and power will greatly improve the company's profits, and the company is expected to become the leader in local power companies and large market capitalization companies, and maintain the "highly recommended-A" investment rating. Target price 6.0 yuan
Risk hint: the cost of coal is higher than expected, and the speed of installed capacity expansion is lower than expected.
