SDIC Power (600886) 2018 Annual Report Review: Considerable Performance in Fourth Quarter
Event: SDIC Power released its 2018 annual report.
In 2018, the company’s operating income was 41 billion yuan, an increase of 29 in ten years.
6%; net profit attributable to mother 43.
60,000 yuan, an increase of 35 in ten years.
0%; net profit deducted from non-mother 41.
90,000 yuan, an increase of 30 in ten years.
3%; EPS 0.
Opinion: The increase of fuel electricity price in Q4 2018: the long-term company’s internal power generation in 2018 is 151.6 billion kilowatt hours, an increase of 17.
The company generated 39.1 billion kWh of electricity in the territory in 2018Q4, an increase of 19 per year.
3%, an increase of 5 compared with 2018Q3.
In terms of power supply, the company’s 2018Q4 hydropower and thermal power generation increased twice.
0%, the growth rate increased by 1 compared with 2018Q3.
Benefiting from strong regional power demand, new unit output growth (Northern Xinjiang Phase II, Meizhou Bay Phase II) and other factors, thermal power generation in the fourth quarter of 2018 maintained rapid growth, driving internal power generation growth17.
Affected by the effect of power price adjustment, market price discount and structural factors, it entered the company’s internal on-grid price of 0 in 2018.
314 yuan / kWh, an annual increase of 8.
4%; of which the on-grid electricity price of the company’s territory in 2018Q4 was 0.
316 yuan / kWh, each year, an increase of 11 quarter-on-quarter.
Benefiting from the “both volume and price rise” and base effect, the company returned to its parent net profit in Q4 20187.
700 million, an increase of 175% in ten years.
The Yalong River hydropower has steadily increased, and the non-Yalong River water sector has turned losses: in 2018, the Yalong River hydropower generation capacity was 71.4 billion kWh, an increase.
4%; average on-grid electricity price is 0.
277 yuan / kWh, an annual increase of 5.
0%; contribution to mother’s net profit 37.
900 million, a five-year growth of 5.
Subvert the Yalong River Hydropower Contribution. In 2018, the net profit of the non-Yalongjiang sector was attributed to mothers5.
80,000 yuan, and 2017 (net profit attributable to mother -3.
500 million) measurement to achieve loss.
In our view, the company’s non-Yalongjiang sector’s turnaround in 2018 was mainly due to the recovery in thermal power sector performance.We are optimistic about the decline of the coal price hub, and thermal power profit is expected to continue to repair.
It is estimated that the Yalong River Midstream Power Plant will be put into operation: at the end of 2018, the projects under construction in the Yalong River Midstream include Lianghekou Hydropower Station (3 million kilowatts) and Yangfanggou Hydropower Generator (1.5 million kilowatts). The construction progress is 46.
The first unit of the middle reaches of the Yalong River is expected to be commissioned in 2021.
As the Yalong River Midstream Hydropower Station continues to contribute, the company’s 苏州夜网论坛 long-term growth is worth looking forward to.
The profit forecast and investment rating take into account the company’s operating conditions and other factors. We have raised our profit forecasts for 2019 and 2020. It is expected that the company’s net profit attributable to mothers for 2019 and 2020 will be 48.
300 million (41 before adjustment respectively.
300 million), plus a predicted net profit for motherhood of 48 in 2021.
0 million yuan, the company’s 2019-2021 EPS are expected to be 0.
71 yuan, the current sustainable corresponding PE is 11, 11, 12 times.
We are optimistic about the recovery of the company’s thermal power business and the development of the Yalong River Hydropower, maintaining the “overweight” rating.