One thing:
The company released its annual report for 2017, with an annual operating income of 8.131 billion yuan, an increase of 115.48% over the same period last year, and a net profit of 544 million yuan, a sharp increase of 210.24% over the same period last year.
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. In terms of business, real estate revenue was 1.892 billion yuan, up 19% from the same period last year; operating income from photovoltaic construction and operation totaled 5.435 billion yuan, up 58% from 2016, accounting for 67% of operating income Environmental protection income has achieved a huge breakthrough from zero to 803 million. With the gradual landing of the company's PPP project, it will effectively make up for the loss of operating income caused by the divestiture of the real estate business, and further expand the company's profitability.
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 will break the 1GW barrier; in 2018, with the gradual implementation of the project, the scale of the company's grid connection will reach more than 2GW. In terms of funds, the company announced on April 9, 2018 that the new 4.85 billion increase plan has been approved by the CSRC, and all the funds raised will be used for the construction investment of 11 photovoltaic power station projects. after putting into operation, it will bring a stable cash inflow return to the company.
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. As the company's PPP order pays attention to the quality of the project itself, and the capital is abundant, the balance of cash and cash equivalents is nearly 10 billion yuan at the end of 2017, which ensures the steady progress of the company's bid-winning project. 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. Maintain the profit forecast for 2018-2019, that is, the net profit is 9.94 yuan and 2.029 billion yuan. (it is expected that there will be 933 million yuan of non-recurrent profit and loss from the sale of real estate business in 2018, if taken into account, the net profit is 1.928 billion yuan). It is estimated that the non-return net profit will be 2.553 billion yuan in 2020, and the corresponding three-year deduction of non-EPS will be 0.74,1.52,1.91 yuan respectively. The company will be given 22 times PE in 2018, with a target price of 16.28 yuan. Maintain a "buy" rating.