This report is read as follows:
The commissioning of wind power projects is accelerated, the annual installation target is expected to be achieved, and the performance is expected to continue to increase.
Main points of investment:
Maintain the "overweight" rating: maintain the 2023-2025 EPS 0.60, 0.99, and target price of 1.12 yuan, maintain the target price of 16.52 yuan, maintain the "overweight" rating.
Event: the company issued a "notice on the first batch of wind turbines connected to the grid in the Yongning wind farm project of Honghe Yuneng New Energy Development Co., Ltd., a wholly-owned subsidiary." by the end of July 2023, the Yongning wind farm project totaled 157000 kilowatts of wind turbines.
The commissioning of wind power projects is accelerated, and the annual installation target is expected to be achieved. By the end of July 2023, the company has put into operation a total of 827000 kilowatts of wind power installed, of which 307000 kilowatts have been installed from January to July 2023. We have made it clear before: under the joint action of the urgent demand for new energy development in Yunnan Province and the improvement of the company's internal governance level, the company's new energy installation will continue to grow at a high level. (refer to our report released in July 2023, "competitive advantage creates high growth, and a prelude to high profit growth"). The company's Yongning project surplus units (all expected to be put into production this year), Admiralty Phase I and Jian Shuitang Liangzi and other wind power projects are still in orderly progress. we believe that the company is expected to achieve the annual new energy installation target (the total installed capacity will exceed 2 million kilowatts by the end of 2023).
The growth of new energy is realized, and the performance is expected to continue to increase. The company's performance forecast reveals that the estimated return net profit of 2Q23 Company is RMB0.9-1.3 million, which is + 93.5%-177% compared with the same period last year. We believe that the recent accelerated growth of the company's performance is a representation of the inherent competitive advantage at the financial level. We expect the company's installed growth of new energy and the improvement of profitability of new projects to have a high degree of certainty, and the performance of 2H23 is expected to maintain rapid growth with the commissioning of new energy projects under construction.
Risk tips: electricity demand is not as expected, salt and nitrate business operation is not as expected, asset acquisition progress and programs are not as expected.