The company released its quarterly report for 2020, with revenue of 27.073 billion yuan in the first three quarters, + 17.76% of the same period last year, and net profit of 1.342 billion yuan, + 29.65% of the same period last year. Q3 realized revenue of 9.32 billion yuan, year-on-year + 30.38%, month-on-month-2.54%; return to the mother net profit of 388 million yuan, year-on-year + 26.92%, month-on-month-30.52%.
Main points of investment:
The growth rate of new orders has accelerated, and the 14th five-year Plan has helped the company take off: data from the China Power Union show that the national electricity consumption has accelerated its recovery, and by the end of September, the country's electricity consumption has reached 5.4134 trillion kilowatt-hours, a year-on-year increase of + 1.3%, a positive growth. The company accumulated 39.16 billion yuan in new orders this year, + 49.9% year-on-year, of which clean and efficient energy equipment accounted for 36.1%, renewable energy equipment accounted for 26.3%, totaling 62.4% Tencent Q3 new orders 13.27 billion, year-on-year + 93.51%. The Fifth Plenary session of the 19th CPC Central Committee concluded, emphasizing the improvement of energy and resource utilization efficiency and ecological environment during the 14th five-year Plan period. As one of the three major driving forces, Dongfang Electric has mastered advanced clean and efficient energy technology and has broad prospects in the next five years.
Taking advantage of the east wind, the acceleration of wind power business can be expected: China is rich in wind energy resources and huge space for development. By the end of September, a total of 13.06 million kilowatts of wind power had been installed nationwide, accounting for 18.1 percent of the total new capacity, second only to thermal power. In the total investment of 161.9 billion yuan in the first three quarters of wind power, accounting for 52.5 percent of the total investment in power projects, accounting for 52.5 percent of the total investment in power plants with more than 6000 kilowatts, the proportion of wind power continued to rise, accounting for 11.38 percent, compared with the same period last year. From the policy point of view, Guangdong, Jiangsu, Fujian and other places may introduce wind power subsidy policies to further bring benefits to the market. The company's wind power plate has a high market share and a leading technical level. In the first half of the year, it has won the bid for wind power projects such as Changle in Fujian, Yangjiang in Guangdong and Laizhou in Shandong. It is expected that at the end of the year, the company will continue to look for opportunities to give full play to its advantages and accelerate the development of the wind power sector.
Based on the traditional plate, enter the new field of hydrogen energy: in addition to the traditional energy plate, the company's fuel car battery business is developing rapidly. Up to the tenth batch of new energy vehicles promotion catalogue of the Ministry of Industry and Information Technology, the company has cooperated with Chengke, Zhongzhi and Qinxing to launch 5 fuel cell city buses. With the introduction of hydrogen energy policies around the country, the company's fuel cell vehicle business is expected to become a new revenue growth point.
Profit forecast and investment advice: the company's 20-22 operating income is expected to be 346.96max 366.75 / 38.544 billion yuan, the parent net profit is 18.45pm 20.56 / 2.227 billion yuan, and the corresponding EPS is 0.59 Universe 0.71 yuan per share. Based on the revitalization of wind power, the oligopoly of traditional business and the smooth progress of fuel vehicle business, the buy rating is maintained.
Risk factors: fuel cell industry policy changes, market competition aggravates the risk; the risk of a sharp decline in the traditional energy sector, clean and efficient power generation business shrank more than expected.