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台海核电(002366)首次覆盖报告:重启预期升温 产品延展打开成长空间

Taiwan Strait Nuclear Power (002366) first coverage report: restart expected warming products extend to open room for growth

國泰君安 ·  03/04/2019  · Researches

This report is read as follows:

Nuclear power restart is expected to heat up, and the company has fully benefited from the batch construction of nuclear power. CNPC Hong Kong Industrial Fund will increase its capital by HK $1.5 billion, and the group's debt risk is expected to be resolved.

Main points of investment:

Conclusion: the restart of nuclear power is expected to heat up, and the company fully benefits from the batch construction of nuclear power. CNPC Hong Kong Industrial Fund will increase its capital by HK $1.5 billion, and the group's debt risk is expected to be resolved. It is estimated that the EPS of the company from 2018 to 2020 will be 0.37,0.63,0.80 yuan. Based on the valuation level of the comparable company, the company will be given 29 times PE in 2019, with a target price of 18.3 yuan.

Nuclear power restart is expected to heat up, and the company has fully benefited from the batch construction of nuclear power. ① 4 Taihualong No. 1 unit is subject to approval, and nuclear power restart is expected to heat up. In 2016-18, nuclear power units were "zero approved" for three consecutive years; it is expected that the third generation units are expected to enter the batch construction period, with an average annual start-up of 6-8 units, with an average annual investment of about 50 billion. ② is a leading company in nuclear power equipment, with more than 75% of its revenue coming from the nuclear power sector.

The competitive advantage of the company's main pipeline is outstanding, and its market share has increased to more than 60% since 2016. ③ 's product structure is becoming more and more abundant, and the company has mastered the manufacturing technology of key equipment for small nuclear islands, which can realize the manufacture of pressure vessels, regulators, evaporators and other equipment, and the malleability of the products will help to open up long-term growth space.

Since 2017, the contract for related transactions with the group has been about 5.85 billion yuan.

Join hands with CNPC to lay out an offshore floating platform to increase capital to relieve the debt pressure of the group. ① China Nuclear Power (50%), Taiwan Strait Group (35%) and Blue Sky Investment (15%) have set up joint ventures to promote projects such as an integrated offshore clean energy supply platform. ② currently has 12 vessels in the integrated clean energy supply platform project, assuming that each ship (two small piles) invests about 7.5 billion yuan, the company will benefit from hundreds of billions of investment in offshore floating platforms. ③ China Nuclear Hong Kong Industrial Fund has increased its capital by HK $1.5 billion to relieve the cash flow pressure of the Group. Taiwan Strait Group is the controlling shareholder of the company, after the capital increase, it will actively resolve the debt risk of the group.

Catalyst: get a large order.

Core risks: approval of nuclear power units is lower than expected and progress of offshore floating platforms is lower than expected.

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