Energy IoT leader, private communication design leader. The company is a leading provider of integrated energy services, communication design and IoT application solutions in China. At the beginning of its establishment, the company provided information technology services to Beijing power grid companies, then gradually expanded its business to the whole country, mainly serving China Power Grid, China Southern Power Grid and its subsidiaries. In 2008, the company entered the communications industry through a merger and acquisition of private communication planning and design leader Liaoning Post and Telecommunication, further expanding its business field. Relying on its strong accumulation in electricity and communications, the company is fully involved in the three major business directions of integrated energy services, smart IoT applications, and communication planning and design to provide intelligent integrated solutions for customers in the power grid, operators, transportation, finance and other industries.
Carbon neutrality and carbon peaks are combined with dual control of energy consumption, and the growth of virtual power plants is safe. A virtual power plant is an IoT technology that uniformly coordinates and controls distributed power generation, demand-side response and energy storage resources to respond to grid scheduling instructions. The model it provides integrates new energy power with traditional energy and energy storage devices. It can show stable power output characteristics to large power grids under intelligent collaborative regulation and decision support, opening up a new path for the safe and efficient use of new energy power. Recently, “dual control” energy consumption policies at various levels of government have continued to increase, and electricity shortages have gradually become prominent. Combined with the “double carbon” strategy at the national level, while promoting a green and low-carbon economic transformation, it has also brought new opportunities for change to the energy industry. In this context, the company's integrated energy service business centered on virtual power plants is expected to develop rapidly. The company has fully participated in the operation process of the Hebei virtual power plant project and has accumulated valuable experience. It has a great first-mover advantage in this field. It is expected to develop by leaps and bounds in the future as market demand explodes.
Investment suggestions: As the leader of the private communication planning and design institute, the company's Liaoning Post and Telecommunication will continue to be the company's ballast stone business; furthermore, the short-term “double control” of energy consumption superimposed on the long-term “double carbon” policy has promoted the rise in market sentiment for integrated energy services, starting with virtual power plants. The company, as a pioneer in the virtual power plant field and an important participant in the industry chain, has broad prospects for future development. We expect the company's revenue from 2021 to 2023 to be 1,672 million yuan (+18.02%), 1,874 million yuan (+12.08%), and 2,166 million yuan (+15.59%), respectively; net profit of 177 million yuan (+65.38%), 192 million yuan (+8.20%), and 227 million yuan (+18.58%), respectively. We gave the company a “buy-A” investment rating for 2022 PE30X, corresponding to a market value of 5.746 billion yuan and a corresponding target price of 18.32 yuan.
Risk warning: risk of product and technology development, risk of loss of goodwill, risk of seasonal fluctuations in operating income, development of the virtual power plant industry falling short of expectations