Event

On December 12, the company signed the "Equity transfer Agreement on Hebei Yangye New Energy Technology Co., Ltd." with Hebei Changmiao New Energy, Hebei Chenting New Energy and Hebei Yangye New Energy. The company intends to transfer 20% of Yangye New Energy with its own funds, and the equity transfer price is 30 million yuan. Hebei Research and effect New Energy Technology Co., Ltd., a wholly-owned subsidiary of Yangye New Energy, has obtained the pilot project of load-storage integration and multi-energy complementarity of power source network in Hebei Province (750MW photovoltaic project in Yuxian County, Zhangjiakou City, Hebei Province) and its approval.

Comment

The acquisition of a 20% stake in Hebei Yangye New Energy will add another important growth point to the company's performance. The Yuxian 750MW photovoltaic project approved by Yangye New Energy wholly-owned subsidiary is the largest photovoltaic project among the 6 pilot projects of load-storage integration of power source network in Hebei Province in 2021, and it is also the second largest among the 11 pilot projects of charge-storage integration and multi-energy complementarity of source network. The project is a large-scale investment project in Beijing-Tianjin-Hebei region, and the company mainly participates in three-dimensional software design, and gradually cuts into all aspects of the source network load storage project and supporting value-added services, which is expected to contribute to the company's greater performance increment in the future.

Cut into the new energy project in the form of a stake, the company's voice in the industry is expected to be enhanced. The company's layout of the new energy industry is relatively ahead of schedule, and it has strong software service capabilities in new energy projects. By the end of 2021, the company has participated in more new energy project design and consulting business than 10GW.

Before the equity acquisition, Changmiao New Energy and Chenting New Energy held 50.5% and 49.5% of Yangye New Energy respectively. After completing this equity acquisition, the company will become the third largest shareholder of Yangye New Energy.

Relying on Yangye New Energy to cut into new energy projects, the company is expected to rely on the advantages of participating companies in the industry, enhance the voice of the industry, and improve the order-taking ability of the company's software business in the new energy industry.

The source network load storage project has a strong demonstration, and the order quantity of the company is expected to be released gradually in the long run. The company's BIM software business achieves full coverage in the whole process of power generation, transmission, power transformation, power distribution and power consumption, as well as the process of design, construction, operation and maintenance. The source network load storage project is more consistent with the company's BIM software business coverage. The company's entry into the source network lotus storage pilot project is relatively scarce in the Beijing-Tianjin-Hebei region, and has a strong demonstration effect. The company's entry into the source network lotus storage project will help to deepen customers' recognition of the company's software service capability and technical level. at the same time, speed up the layout in supporting energy storage, virtual power plants, data centers and other related areas, the company's order scale is expected to increase in the long run.

Equity binding deepens the cooperative relationship and is optimistic about the long-term value space of operation and maintenance links. With the increasing demand for data acquisition, operation and inspection of power grid, the operation and maintenance from power generation to power consumption may become a link with large potential value in the future. At present, the company has launched some operation and maintenance products, and the future demand will be gradually released with the operation and maintenance end, and the company is expected to share the vast space of the operation and maintenance market. The operation cycle of the new energy power generation project is relatively long, such as the operation cycle of the distributed photovoltaic project can reach 25 years. As the participating shareholder of Yangye New Energy, the company has the priority to participate in the digital operation of the new energy power generation project. It is expected to participate in the digital operation and digital services in the whole operation cycle of the project, which is another important supporting logic for the company to open up long-term incremental space.

Investment suggestion

The company acquired a 20% stake in Hebei Yangye New Energy, adding another important growth point to the company's performance in the short term. In the long run, the company's voice in the industry is expected to increase, and the order volume of the company's software and technical services is expected to be gradually released. As the leader of domestic electric power BIM software, the company is expected to continue to grow under the background of high prosperity in downstream application fields and domestic substitution of design software. We estimate that in 2024, the company's operating income and net profit will be 878, 1331, 1688 million and 0.65, respectively, respectively. Based on the closing price of 10.02 yuan on December 13, the "recommended" rating is maintained based on the 92.60X/38.54X/25.76X of 2022, 2023, and 2024 PE, respectively.

Risk hint

The development of the new energy industry is not as expected; the progress of domestic substitution in the industry is not as expected; the competition in the industry is intensified; and the progress of the company's EPC business clearance is not as expected.