Relying on Huaneng, gorgeous transformational energy Internet platform: the company sold its original coal and power business in 2018, retained profitable industrial park operation and wire and cable business, and carried out commodity supply chain business (mainly coal). After the reorganization, relying on science and technology to enable the company's intelligent supply chain platform as the main body ("one") to vigorously tap the opportunities of the industrial chain, through the industrial park development and operation business and wire and cable business as the support ("two wings") to seek new performance growth.
Integration: trillion supply chain financial market, new opportunities of corporate industrial chain: at present, the penetration of supply chain financial system in China is low, and 30% of excellent supply chain financial providers should be covered by supply chain financial products. According to the forecast of 20% permeability, China's market space will be about 2 trillion yuan in 2018. The key business of the company's transformation to a smart supply chain includes logistics warehousing platform, e-commerce trading platform and supply chain financial service platform, focusing on coal, power accessories, metallurgical products trading and supply chain financial services. Based on the power production, supply and marketing system of Huaneng Group, at the same time, Shanghai e-commerce may be injected into the company's supply chain business layout. Revenue in the first half of 2019 reached 517 million yuan, an increase of several times over the whole of last year.
Left: exploring the industrial park, invigorating land use, diversified development to deepen the thickness of the industrial chain: as the land activation platform of Huaneng Group, the company is making great efforts to develop the industrial park. At present, the company has projects in Nanjing Jiangshan Huihui and Chongqing Jiangbei District, which are geographically advantageous. In 2018, only the sales revenue of Jiangshanhui Block C accounted for 46% of the total revenue. This year, the remaining houses in Jiangshan Huanghui Block C are sold. The E office building is sold to Huaneng at a price of 680 million yuan, and the rest of Jiangshan Huanghui land is also under construction, which may erupt in the next two years. At the same time, there is a lot of idle land in the power plant of Huaneng Group, which may be expected in the future.
Right: cable business wins by quantity, creating another city of supply chain finance: the steady growth of wire and cable business, which forms a synergy with the construction of intelligent supply chain. The revenue of the cable business in the first half of 2019 was 990 million yuan, an increase of 20.2% over the same period last year, and a gross profit margin of 16.8%, which helped the company's performance to pick up. At the same time, wires and cables, as one of the bulk supply chain commodities, form a synergistic effect with the company's intelligent supply chain construction.
Investment suggestion
We estimate that the operating income of the company from 2019 to 2021 will be 4.909 pesque 4.942 billion yuan, and the net profit of return to the mother will be 5.91 Plus 769 Plus 940 million, corresponding EPS of 0.46,0.60 and 0.73, and corresponding PE of 12, 9 and 7 times. According to the segment valuation method, the company's target price is 6.8 yuan, covering it for the first time and giving it a "buy" rating.
Risk
The risk that the project schedule is not as expected, the asset injection progress is not as expected, the risk of lifting the ban on restricted shares, and the risk of poor cash flow caused by the increase of accounts receivable and inventory.