Introduction to this report:
We believe that as a subsidiary of a central enterprise, the company can obtain richer application scenarios and financial support in the development of new products, consolidate the company's competitive advantage in the hydrogen energy sector, and achieve business expansion in the industrial chain.
Key points of investment:
Maintain an increase in holdings. According to [a] annual report, mm revealed a total planned profit of 300 million yuan for 2024, lowered the forecast for 2024-2025 EPS 0.24/0.29 (originally 0.39/0.44) yuan corresponding growth rate of 186%/21%, and predicted a 15% growth rate corresponding to EPS of 0.33 yuan in 2026. Affected by the offshore wind power industry's boom falling short of expectations, the target price was lowered to 8 yuan, corresponding to 33 times PE in 2024.
The hydrogen energy project achieved hydrogen as scheduled, and the megawatt-scale PEM electrolyzed water hydrogen production unit was successfully brought offline. (1) The 1000Nm3 and 1200Nm3 alkaline electrolyzers independently developed in 2023 were successfully applied to the Liaoning Huadian Tieling Xintaizi Phase I 25MW Wind Power Off-grid Energy Storage and Hydrogen Generation Integrated Project and the 200,000 kW New Energy Hydrogen Generation Demonstration Project of Inner Mongolia Huadian Damaoqi, and successfully produced hydrogen. (2) 3.0 MPa single-stack megawatt PEM electrolyzer achieved commercial application and completed the development of a PEM electrolyzed water hydrogen production device and system.
Material transportation, thermal energy, steel structures, and offshore wind power businesses have made new progress. (1) For the first time, the materials business signed the Chuxin mining project in the form of “EPC+ operation and maintenance”. (2) Thermal energy and steel structures leveraged business synergy to successfully sign the world's first hyperbolic air-cooled steel tower project with a million-kilowatt unit - Huadian Hami 2×1000MW steel tower air cooling system EPC general contracting project. (3) Strive to become a first-class domestic offshore wind power engineering system solution provider and win the bid for the CGN Fanshi offshore wind power project through regional marketing. The total profit of the 2024 plan will increase by 171%, and it is expected to become an integrated hydrogen energy service provider in the industrial chain. (1) New sales contracts of 3.6 billion yuan were signed in 2024Q1, an increase of 180% over the previous year. (2) In 2024, it is planned to sign a new sales contract of 12 billion yuan, increase by 30%, revenue of 8.8 billion yuan increase by 23%, and total profit of 300 million yuan increase by 171%.
(3) We believe that as a subsidiary of a central enterprise, the company can obtain richer application scenarios and financial support in new product development, consolidate the company's competitive advantage in the hydrogen energy sector, and achieve business expansion in the industrial chain.
Risk warning: macroeconomic policy risks, infrastructure investment falling short of expectations, etc.