The increase in purchased electricity led to a drop of 87.1% in the first half of 15 years compared with the same period last year.
The company achieved a net profit of 230000 yuan in the first half of 15 years, down 87.1% from the same period last year, mainly due to the increase in electricity purchased in the current period, including a net profit of 6.82 million yuan in the second quarter of 2014. However, as the company's profits are mainly concentrated in the summer flood season, the decline in performance in the first half of the year has a limited impact on full-year results.
The company is located in Xichang City, Liangshan Prefecture, and is a listing platform under the State Network.
The company is located in Xichang City, Liangshan Prefecture. It is an electric power enterprise with integrated operation of hydropower generation, power supply and power distribution. It has a complete power generation and power supply network. The controlling shareholder of the company is Sichuan Electric Power Company of State Grid, which currently holds 20.1% of the shares of the company and is entrusted with managing 4.9% of the shares held by state-owned investment in Liangshan Prefecture. In 2014, the company achieved an income of 760 million yuan, up 16.9% from the same period last year, and its net profit was 61.8 million yuan, down 7.6% from the same period last year, mainly due to an increase in the loss of its stake in Kangxi Copper.
The main business of selling electricity is growing steadily, and the development of new energy is accelerating.
From 2012 to 2014, the company completed electricity sales of 1.42 billion, 1.65 billion and 1.86 billion kWh respectively, showing a steady growth trend. According to the business plan disclosed in the annual report, the company is expected to complete electricity sales of 2 billion kWh in 2015, an increase of 140 million kWh or 7.8% over 14 years. It is expected that the increase will mainly come from the increase in electricity sales to the national grid during the flood season after the completion and operation of the Yanyuan-Muli booster project. In 2015, the company has a layout in both photovoltaic and wind power fields, and has signed a framework agreement with Yanyuan County Government to plan the installed scale of 300MW, and plans to develop photovoltaic energy in Yanyuan County by joint venture with Central Energy and Gold and Iron Mining, and plans to develop wind energy resources in Liangshan Prefecture by joint venture with Datang Sichuan Power Generation.
The recovery of Huaxi Securities shares is carried out in an orderly manner, and a breakthrough is expected to be made in the future.
At present, the company has Huaxi Securities 50 million yuan shares in the recovery freeze, Huaxi Securities is currently in the IPO listing counseling stage, with reference to the current A-share brokerage plate price-to-earnings ratio, the value of the above shares is about 900 million yuan. Once the company succeeds in recovery, it will become a major financial asset of the company.
The electricity reform is expected to reduce the company's power purchase cost, giving a "prudent overweight" rating for the first time.
Regardless of the possible performance contribution of the photovoltaic business, the company's EPS from 2015 to 2017 is expected to be 0.189 yuan, 0.192 yuan and 0.202 yuan respectively. The company currently has a high cost of purchasing electricity, and with the promotion of power reform in the future, the company's power purchase cost is expected to be reduced, but in the short term, the company's valuation level is relatively high, giving the company a "prudent overweight" rating for the first time.
Risk hint: the company's power generation is lower than expected, and the progress of photovoltaic project construction is lower than expected.