Key data of financial reporting
The company's 2017 operating income slightly increased by 0.67% to 2.317 billion yuan compared with the same period last year, and the net profit attributable to shareholders increased by 27.7% to 385 million yuan. In the first quarter of 2018, operating income decreased by 21.6% year-on-year to 420 million yuan, and net profit attributed to shareholders increased slightly to 70.6 million yuan.
Main points of investment
Annual quarterly report results in line with expectations
We believe that the decline in the company's quarterly revenue is mainly due to the decline in power generation revenue due to the sale of some photovoltaic power plants in 2017, the number of installed photovoltaic power stations (about 200MW) at the beginning of 2018 was lower than that at the beginning of 2017 (410MW). Overall, the company's quarterly results are in line with expectations. The company expects net profit to change by-20% to 10% year-on-year in the first half of 2018.
Respond publicly to questions related to the progress of extension matters
According to information from sources such as Anhui bidding Consulting Network, Hefei Core screen Industry Investment Fund (LP) recently publicly transferred US $700 million investment share of Anshi Semiconductor, which we estimate is equivalent to 33.6% of the target total share; the consortium composed of Zhongwen Jintai Semiconductor Investment, Yunnan City Investment and Shanghai LP was confirmed as the transferee of this share on April 22, 2018. The company responded to the incident through the interactive platform of Shenzhen Stock Exchange on April 24: "according to the latest resolution of the relevant fund managers holding Anshi Semiconductor, it is clear that this Hefei wide core transfer is only part of the fund share transfer of the Anshi project, and has nothing to do with the choice of the entire capitalization operation plan of the Anshi project. If you consider the capitalization of China's A shares, it will be based on the ranking of the results of the review issued to investors on January 12, 2018. " The company said on the interactive easy platform on April 13: "the company was ranked first in the previously announced capitalization scheme selection and has the priority to negotiate, and it will not change as a result of the transfer of the partnership share of Hefei Guangxin Co., Ltd." Therefore, we judge that the company has not given up its efforts to participate in the capitalization of Anshi semiconductors.
Investment advice and risk tips
We expect that the company's existing assets will achieve EPS of 0.27,0.30,0.34 yuan under the current equity by 2018-2020, corresponding to 17.2 times, 15.5 times and 13.8 times. Maintain the "overweight" rating. Investors should also pay attention to the risks: it is still difficult to judge the prospects for capitalization of Anshi Semiconductor.