Events:
In 2020, the company achieved a total operating income of 37.283 billion yuan, an increase of 13.53% over the same period last year, and a net profit of 1.862 billion yuan, an increase of 45.73% over the same period last year. The company intends to distribute a cash dividend of 1.80 yuan (including tax) to all shareholders for every 10 shares.
Main points of investment:
The performance is in line with expectations, and the company improves its profitability by improving its quality and efficiency. In 2020, the company achieved a total operating income of 37.283 billion yuan, an increase of 13.53% over the same period last year, and a net profit of 1.862 billion yuan, an increase of 45.73% over the same period last year. The company's operating performance has increased significantly, mainly due to the increase in the sales scale of the company in the current period; second, the company has carried out special actions to improve quality and efficiency, and its profitability has been improved. The net cash flow from the company's operating activities was-2.749 billion yuan, which was lower than that of the same period last year, mainly due to the normal operating net outflow of its financial companies this year. During the reporting period, the company achieved basic earnings per share of 0.60 yuan, an increase of 46.34% over the same period last year. The company intends to distribute a cash dividend of 1.80 yuan (including tax) to all shareholders for every 10 shares.
The business of renewable energy equipment is growing rapidly, and there are a lot of achievements in scientific and technological innovation. During the reporting period, the company achieved a total revenue of 10.085 billion yuan in renewable energy equipment, an increase of 70.32% over the same period last year, mainly due to the influence of wind power policy and market environment. The sales volume of wind turbines this year was 2826MW, an increase of 200.95% over the same period last year. The business income of wind power products increased by 108.71% over the same period last year. The total revenue of emerging growth industries was 6.296 billion, an increase of 103.06% over the same period last year, mainly due to an increase of 240.88% from the same period last year. At the same time, the company persisted in putting scientific and technological innovation in the first place, with an annual investment of 2.003 billion yuan in scientific research, an increase of 6.06% over the same period last year, effectively promoting the concentrated emergence of major innovation achievements. The scientific and technological innovations made by the company this year include the hoisting of the first runner and rotor of Baihetan million kilowatt turbine, and the grid-connected generation of 10 MW offshore wind power with the largest single unit capacity in Asia.
The market development is very effective, and the order growth momentum is good. During the reporting period, the company added 49.4 billion yuan in new orders, an increase of 23.1% over the same period last year. Among the new effective orders, clean and efficient energy equipment accounted for 32.4%, renewable energy equipment accounted for 23.9%, engineering and trade accounted for 13.4%, modern manufacturing services accounted for 16.1%, and emerging growth industries accounted for 14.3%. By the end of 2020, the company had an order of 84.5 billion yuan. Among them, orders for new energy industry increased rapidly, 7MW and 10MW offshore wind turbines received batch orders; effective orders for power station service industry exceeded 6.04 billion yuan, a record high; industrial turbine industry belonging to emerging growth industries increased effective orders by 3.04 billion yuan, an increase of 44.80% over the same period last year; the advantages of traditional industries were consolidated, and the large and medium-sized thermal power market continued to maintain 1/3 domestic market share.
Maintain profit forecasts and maintain "overweight" ratings: the company is one of the world's largest power generation equipment suppliers and power plant contractors. We maintain the company's profit forecast, the estimated 21-22 year return net profit is 21.65 yuan and 2.452 billion yuan respectively, the new 23-year profit forecast, the 23-year return net profit is expected to be 2.878 billion yuan, corresponding to 21-23 years EPS is 0.69,0.79,0.92 yuan per share, the current stock price corresponding PE is 18 times, 16 times, 14 times. Maintain the "overweight" rating.
Risk hint: the demand for wind power installation is not up to expectations; the completion of newly signed orders is not as expected.