Events:
The company released the 2017 results KuaiBao and 2018 first-quarter results forecast. In 2017, the operating income was 8.14 billion yuan, an increase of 115.71% over the same period last year, and the net profit was 539 million yuan, an increase of 207.62% over the same period last year, which was in line with our previous expectations. The company's net profit in the first quarter of 2018 was 10.7-1.11 billion yuan, a sharp increase of 2869% over the same period last year.
The company announced a few days ago that the total investment of the environmental improvement and infrastructure PPP project (Phase II) of Fangmaping Scenic spot in Xingren County, Guizhou Province was 436 million yuan.
Comments:
In 2017, due to the construction of power stations connected to the grid, the photovoltaic power stations that have been put into operation have reached 1GW. At the same time, with the gradual release of eco-environmental performance, the company's performance increased significantly in 2017.
The company completed the transfer of real estate assets in the first quarter of 2018, received more than 51% of the equity transfer in the same period, and recovered the total amount of 2.891 billion yuan owed to the company by the underlying company, resulting in a significant increase in net profit compared with the same period last year. At the same time, we expect that with the further expansion of the company's grid-connected capacity of power stations and the further release of the performance of the ecological and environmental protection industry, the company's high performance growth in 2018 can be expected.
Photovoltaic projects have landed steadily and will be well funded in 2018. Since 2015, the company has made photovoltaic as its main business development strategy, vigorously promoting the construction of photovoltaic power stations. By the end of 2017, the photovoltaic power stations that have been put into operation have reached 1GW In 2018, it is expected that with the gradual landing of the project, the scale of grid connection will reach more than 2GW. In terms of funds, the company announced on April 9, 2018 that the new round of fixed increase of 4.85 billion has been approved by the CSRC, and all the funds raised will be used for the construction investment of 11 photovoltaic power station projects, which will bring stable cash inflow returns to the company after being put into operation.
The ecological and environmental protection PPP project has won the bid one after another, and the order is expected to reach 25 billion yuan in 2018. Since 2018, the company has won six eco-environmental protection PPP projects with a total investment of 7.684 billion yuan. The winning bid is in line with the company's consistent concept of "committed to the construction of ecological and environmental protection in China", the embodiment of the gradual landing of the company's ecological and environmental protection business strategic planning, and the company's concrete practice of practicing ecological civilization and building a beautiful China.
Because the PPP of the company pays attention to the quality of the project itself, and the company's asset-liability ratio is low, there are plenty of funds.
The release of documents 92 and 23 of the Ministry of Finance did not have a substantial impact on the company. We are still optimistic about the stable landing of existing projects and the continuous acquisition of new orders. The company's ecological and environmental protection PPP bid order is expected to exceed 25 billion yuan in 2018.
Maintain a "buy" rating. We continue to be optimistic about the development of the company's "new energy + environmental protection" two-wheel drive. According to KuaiBao's performance, we raised the company's operating income for 2017-2019 to 81.36 yuan, 138.04 yuan and 22.175 billion yuan, adjusted its profit forecast for 2017 to 539 million yuan (the previous forecast was 541 million yuan), and maintained its profit forecast for 2018-2019, that is, a net profit of 9.94 yuan and 2.029 billion yuan. (it is estimated that there will be 933 million yuan of non-recurring gains and losses from the sale of real estate business in 2018, if taken into account. The net profit is 1.928 billion yuan), the corresponding deduction of non-EPS is 0.40,0.74,1.52 yuan, and the company is given 22 times PE in 2018, with a target price of 16.28 yuan, maintaining the "buy" rating.
Risk tips: high financing costs slow down the development of the project; PPP project gradually brings financial expenses, debt ratio increase; PPP project order is not as expected.
