Summary of the report:
In the first three quarters of 2017, the company achieved operating income of 1.201 billion yuan, an increase of 23.57% over the same period last year, and a net profit of 121 million yuan, an increase of 42.96% over the same period last year.
Component sales grew steadily, and the layout of the whole industry chain: in the first half of 2017, the company achieved component sales of 428 million yuan, an increase of 18.08% over the same period last year. The company currently has five production bases, which are laid out in the whole photovoltaic industry chain, which completes the coordination and mutual supplement of the industry chain, brings good cost control and anti-risk ability, and contributes to the long-term and stable growth of the company's performance.
EPC revenue has increased significantly, and the cost advantage is significant: the company achieved 211 million yuan in engineering revenue in the first half of 2017, a substantial increase of about 24 times compared with the same period last year. The company has an integrated advantage in the field of power plant EPC, can provide customers with components, design, installation and follow-up operation and maintenance of integrated services, has a strong cost competitiveness. The company has the advantage of industrial resources in the northwest region, and contracts the surface power station and poverty alleviation power station EPC project nearby in the industrial settlement area, and accumulatively undertakes the power station EPC project about 51MW in the first half of 2017, and is expected to maintain a good growth trend in the future.
The continuous development of its own power station will become a performance support: since 2013, the company began to layout in the field of photovoltaic power station, which is now the most important performance support of the company. In the first half of 2017, the Shaanxi Touri 20MW power station project and the 70MW power station project jointly participated by central enterprises and state-owned enterprises were successfully connected to the grid. Up to now, the company has a total of 260MW photovoltaic power station projects, which will have the opportunity to reach 1GW in the future. The company continues to expand in the field of ground power stations, as well as distributed and photovoltaic poverty alleviation projects. Power plant operation is the most important guarantee for the company's performance.
Profit forecast: the company's EPS from 2017 to 2019 is expected to be 0.14,0.21 and 0.27 yuan respectively, the company has strong cost control ability in the industrial chain, stable performance growth, its own power station and EPC business continue to develop, and maintain the overweight rating.
Risk hint: power station and EPC business development is not as expected; photovoltaic installed capacity is not as expected