The company releases its 2016 annual report
The company released its annual report in 2016. during the reporting period, the company achieved operating income of 1.398 billion yuan, an increase of 6.98% over the same period last year, 111 million of net profit from home ownership, an increase of 3.11% over the same period last year, and net profit of 82.201 million yuan, an increase of 32.59% over the same period last year. Net cash flow from operating activities totaled 42.8712 million yuan, down 73.15% from the same period last year.
In the company's main business, the revenue of electrical control equipment decreased by 8.68% compared with the same period last year, which is the main reason for the company's lower-than-expected performance. In addition, revenue from electricity services increased by 150.28% compared with the same period last year, and revenue from comprehensive energy-saving services increased by 9.46% compared with the same period last year.
Brief comment
Give full play to the operational advantages of "product + service + investment", layout energy service companies give full play to their own advantages, layout from three aspects: 1) incremental distribution network investment. Set up a joint venture company to build Liuzhou Automobile City Industrial Park to drive the growth of distribution network equipment and engineering business; 2) industrial extension investment. The acquisition of 60% stake in Huayue Power to enhance the qualification and strength in the field of power design and engineering general contract; 3) energy-saving business investment.
Increase the capital of Sichuan Dianshi Energy to further enhance its competitiveness and market influence.
The main business electrical control equipment still has strong competitiveness.
Electrical control equipment maintains a leading position in the industry, in which the number of product sales of high-voltage frequency conversion speed regulation system increased by 25% over 2015, and the number and amount of project orders continued to grow. A number of technical and engineering achievements have been achieved during the reporting period, and will continue to undertake relevant projects of Shanghai South Power supply Company and Zhejiang Power supply Bureau in 17 years.
Lingnan cable operation is sound, revenue and profit growth will accelerate
The operating income of the subsidiary Lingnan Cable reached 605 million yuan, an increase of 0.43% over the same period last year, and the total profit was about 54.46 million yuan, an increase of 9.75% over the same period last year. The winning bid of Lingnan cable main network business continues to remain in the forefront, and a major breakthrough has been made in winning the bid on the 220kV level of the power grid, which further establishes the status of the mainstream equipment supplier of the power grid, and is expected to maintain revenue and profit growth.
Comprehensive energy-saving business has a high growth in three years, and is expected to continue a good situation in 17 years. Comprehensive energy-saving service business has achieved good operating benefits in 16 years, and achieved rapid growth for three consecutive years. The subsidiary Zhiguang Energy Saving realized operating income of 252 million yuan, an increase of 8.01% over the same period last year, and its total profit was about 97.37 million yuan, an increase of 11.42% over the same period last year. Centering on the core business of "energy saving and efficiency of power plants, energy saving and efficiency of industrial electricity and utilization of industrial waste heat and pressure power generation", the company won the bid and contracted energy-saving transformation projects of many power plants.
Power consumption services achieve high growth, long-term agreements lock in 17 years of performance
The company's electricity service business achieved an operating income of 172 million yuan, an increase of 150.71% over the same period last year, and a total profit of about 14.67 million yuan, an increase of 25.17% over the same period last year. Power consumption service companies have been set up in many cities in Guangzhou, and four monitoring centers in Guangzhou, Shantou, Nanning and Jiangmen have been put into operation. The "intelligent electricity service platform" has worked well, with annual electricity sales of nearly 300 million kWh in 16 years and strong bidding trading ability. at present, it has signed more than 400 million kWh of electricity in 17 years, and it is expected to sell nearly 1 billion kWh of electricity in 17 years.
It is estimated that the company's EPS in 2017-19 will be 0.65,0.80,0.85 yuan respectively, and the corresponding PE will be 28,21 and 18 times respectively, with a "buy" rating and a target price of 22 yuan.