Main points of investment
The company is currently a clean energy project development and operation and maintenance platform under Beihang, mainly engaged in investment, development, construction, operation and management of photovoltaic business, wind power business and clean heating business. Beijing Control Clean Energy has the strong support of the controlling shareholders, and the number of projects of the company is guaranteed to a certain extent. The company's revenue increased from HK $2890 million in 2016 to HK $10039 million in 2017, an increase of 247%, while net profit increased by 209% to HK $1560 million from HK $505 million in 2016.
The new installed capacity of photovoltaic in China has improved rapidly, and distributed photovoltaic has been greatly developed in 2017. Wind power has been developed in China for nearly a decade, and the newly installed wind power was accelerated by subsidies from 2013 to 2015, but then declined due to the serious problem of abandoning wind, but it has improved significantly since 2017. After the new policies on wind power and photovoltaic, subsidies for built power stations will not be affected, making them high-quality assets, and some enterprises have a tendency to sell power stations, while enterprises with financial advantages can take advantage of the opportunity to absorb excellent new energy plants.
The company's photovoltaic power generation business has developed rapidly, and the wind power generation business has started. The company's 43 (2016: 26) centralized photovoltaic power stations in China have been put into operation, with a total grid-connected capacity of 1784MW, distributed photovoltaic grid-connected capacity of 441MW and wind power grid-connected capacity of 48MW. The company's clean heating business is also in the blue ocean. By the end of 2017, the company has a clean heating project reserve of more than 20 million square meters, and the company aims to become a leader in the field of clean heating within 3 years.
The competitive advantage of the company lies in the low financing cost and the scientific decision-making mechanism when taking the project, which can fully demonstrate the risks and benefits of the project; at the same time, the company system is mixed ownership, and the advantage is more flexible.
Risk hints: major changes in the policy of the new energy power generation industry; rising financing costs; cash flow risk.