Event: the company released a semi-annual report for 2020, with revenue of 53.24 billion yuan in the first half of the year, + 0.5% year-on-year, and net profit of 1.35 billion yuan after deducting non-return to the mother, which was the same as the same period last year. The performance of Q2 improved, with revenue of 38.5 billion yuan, + 19% compared with the same period last year, and net profit of 1.28 billion yuan after deducting non-return to the mother, + 30% year-on-year.
The growth rate of integrated services is relatively fast, and new energy orders are quite large. In the first half of 2020, the company's energy equipment, industrial equipment and integrated services business achieved revenue of 193,205 and 17.9 billion yuan respectively, with year-on-year revenue of + 2%,-0.8% and + 10%, respectively, and gross profit margin of 18%, 16% and 20%, respectively, compared with the same period last year.-2.2,-1.6pcts. The income of energy engineering and services in the integrated services sector is growing rapidly, and structural changes lead to a slight decline in gross profit margin.
In terms of orders, as of the first half of 2020, the company had orders on hand of 294.4 billion yuan, + 21% compared with the same period last year, and new orders of 108.8 billion yuan, + 41% of the same period last year. New orders for smart transportation engineering and services totaled 2.2 billion yuan, a 37-fold increase over the same period last year. Among the new energy equipment and project orders in the first half of the year, the new energy order is 42 billion yuan, the ratio of the new energy order to the traditional energy order is 8:2, the new energy business already has the scale advantage.
The wind power industry is stable and far away, with a five-fold increase in new orders and a seven-fold increase in offshore wind turbine orders. In the first half of the year, the company's wind power business growth was particularly eye-catching: wind power revenue in the first half of the year was + 43% compared with the same period last year, and new orders for wind power equipment were 34 billion yuan, an increase of 5 times over the same period last year; gross profit margin was 17.3%, year-on-year-0.7pcts, due to increased competition for offshore wind power and an increase in the proportion of onshore turbines with low gross margins. Orders for offshore wind power equipment increased by 24.9 billion yuan, a seven-fold increase over the same period last year. As the leader of offshore wind power, the company has the leading design capacity of complete machines and key components in China, and is expected to continue to benefit from the wind power rush in 20-21. And through new technology, new materials, new technology and other measures to reduce the manufacturing cost of the fan to meet the era of parity.
The layout of "new energy + energy storage" to lead a new energy era. The company deepens the overall requirements of the integration of national scenery and fire storage and the integration of load and storage of the source network, completing the installation of equipment for the shared energy storage project in Qinghai in the first half of the year, and is expected to be connected to the grid in the second half of the year; jointly invest in China's first renewable energy demonstration county with the national grid; build the first commercial model Minhang industrial zone Internet + intelligent energy project in Shanghai, which has been put into trial operation; complete the energy storage and frequency modulation project of Guangdong Yuedian Dapu Power Plant. Join the list of backup power suppliers for ZTE Corporation 5G base stations.
Maintain "buy" rating: the cost of overseas projects increased due to the impact of the epidemic in the first half of the year. The gross profit margin of wind power business decreased compared with the same period last year, reducing the 2020-22 net profit forecast to 4.556 billion yuan (the previous value is 40.12 pound 4.468 billion yuan), corresponding to 0.23 shock 0.27 shock 0.30 yuan, Shanghai Electric (A) current share price corresponding to 20-year PE 24 times, Shanghai Electric (H) current share price corresponding to 20-year PE 9 times. As the leader of offshore wind power, the company has abundant orders on hand and is expected to continue to benefit from wind power rush installation, which will enhance the company's profitability and maintain its "buy" rating.
Risk tips: wind power installation is not as expected; the epidemic continues to spread; overseas business risk; exchange rate risk.