Main points of investment
The profit in 2019 was 604 million yuan, an increase of 20.3% over the same period last year:
In 2019, the company achieved revenue of 1.836 billion yuan, an increase of 29.8% over the same period last year, gross profit of 1.121 billion yuan, an increase of 29.4% over the same period last year, and profit attributable to shareholders of 604 million yuan, an increase of 20.3% over the same period last year.
Basic earnings per share are 7.22 cents and a final dividend of HK $0.025 per share is proposed. In 2019, the company's wholly-owned wind power plant performed well, with an increase of 36.6% in the output of 2019 wholly-owned wind power plants. the weighted average utilization hours of wholly-owned wind power plants was 2277 hours, 195 hours higher than the national average of 2082 hours.
Electricity generation fell slightly by 1.89% in the first quarter of 2020 compared with the same period last year and will return to positive growth in the second quarter:
The company's wind power generation in March 2020 was 420.03GWh, an increase of 0.51% over the same period last year. The total wind power generation in March was 466.91GWh, up 0.17% from a year earlier. The total wind power generation from January to March 2020 was 1217.41GWh, down 1.89% from a year earlier. The slight decline in electricity generation in the first quarter compared with the same period last year is mainly affected by the epidemic situation. With the acceleration of domestic resumption of work and production in March, power generation has gradually picked up and is expected to return to positive growth in the second quarter.
Actively develop high-quality and affordable wind power projects with obvious competitive advantages:
In the future, the company will strengthen the development of high-quality and affordable wind power projects and take the pursuit of the lowest kilowatt-hour cost as the company's core competitiveness. In 2019, we will increase the total installed capacity 386MW, equity installed capacity 318MW, including parity capacity 149MW. The company increased its approved capacity 886MW in 2019, including a total of 741MW for parity projects, and a total of 1495.5MW for approved projects so far, of which parity capacity exceeded 60 per cent. In the next 3 years, the company aims to add 600-800MW each year.
By replacing the stock projects with green power subsidies with high-quality parity projects, the company is conducive to improving cash flow, optimizing debt structure, and improving the overall return on investment of the company.
Update the target price of HK $0.4 to give a buy rating:
We update the company's profit forecast and combine the valuation of comparable companies in the industry to give the company a target price of HK $0.40, which is equivalent to 0.5 times PB and 5 times PE in 2020. the target price has 33% room to rise from the current price and gives a buy rating.
Risk Tips:
The commissioning of wind power and photovoltaic projects is delayed due to a variety of factors.
Delayed issuance of government subsidies affects its own cash flow
Wind resources are not good, or power constraints affect power generation.