Event: the company announced on April 9, 2018 that the new round of fixed increase plan has been approved by the Securities Regulatory Commission. The number of shares to be issued in this non-public offering is not more than 3.62 million shares, the issue price is not less than 13.40 yuan per share, and the amount raised is 4.85 billion yuan, of which Dongxu Group, a major shareholder, intends to subscribe for the non-public offering shares with no less than 2 billion yuan in cash.
Comments: the company conducted the last round of fixed growth through the examination and approval of the China Securities Regulatory Commission on June 16, 2016, raising a total of 9.46 billion yuan, and project financing for 17 photovoltaic power plant projects is progressing smoothly.
In order to further expand the company's photovoltaic business, the company approved the fixed increase plan at the shareholders' meeting on November 15, 2016, and successfully passed the examination and approval of the Securities Regulatory Commission on April 9, 2018.
Photovoltaic is the core driving force of the company's energy development. 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 under construction and the photovoltaic power stations that have been built by the company will be connected to a grid of about 1GW, and the scale of the grid-connected projects registered by the company will reach 4GW if all the grid-connected projects are implemented. At the same time, by acquiring 51% of Anxuan Technology, which has a strong advantage in the development of intelligent operation and maintenance system of power plant, the company formally laid out the fields of intelligent operation and maintenance, artificial intelligence and energy Internet, so as to make comprehensive preparations for the development of the whole photovoltaic industry chain.
There will be a smooth increase, and photovoltaic development will continue to improve. The 4.85 billion yuan raised in this increase will be used for the construction investment of 11 photovoltaic power station projects, with a total investment of 4.902 billion yuan, with a total scale of 693.64MW. The above projects have good expected economic benefits, and will bring stable cash inflow returns to the company after they are put into operation. If this increase can be successfully landed, while further expanding the company's photovoltaic market, it will also further enhance the company's capital strength, enhance the company's asset scale, reduce financial risk, and maintain a good asset-liability ratio.
Maintain a "buy" rating. This increase will help the company's photovoltaic business to land steadily. At the same time, the company is also vigorously expanding ecological and environmental protection PPP projects. We are optimistic about the development of the company's "new energy + environmental protection" two-wheel drive. It is estimated that the net profit from 2017 to 2019 will be 5.41,9.94 and 2.029 billion yuan respectively (including non-recurrent profit and loss of 933 million yuan in 2018, the net profit will be 1.927 billion yuan) The corresponding deduction of non-EPS is 0.40,0.74,1.52 yuan, giving the company 22 times PE in 2018, with a target price of 16.28 yuan, maintaining a "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.
