SDIC Power (600886): The amount of electricity generated by the water supply has increased, the marketization has increased, the profit has improved and expanded

SDIC Power (600886): The amount of electricity generated by the water supply has increased, the marketization has increased, the profit has improved and expanded

The company released the 2019 first quarter report.

The company achieved operating income of 101 in the first quarter.

15 ppm, a ten-year increase of 7.

64%; realized net profit attributable to mother 10.

500 million, an increase of 6 in ten years.

14%, in line with Shen Wanwanyuan’s expectations.

Key points of investment: Incoming water supply + thermal power in the region where supply and demand improved, the company’s power generation in the first quarter continued to increase significantly.

The company’s total power generation in the first quarter of 2019 increased by half a year.

72%, in terms of sub-sectors, since the beginning of 2019, the water 深圳桑拿网 supply of the company’s hydropower units is generally abundant, and the company achieved 198 hydropower in the first quarter.

7.4 billion kWh, an increase of 9 in ten years.

39%.

Among them, the Yalong River Hydropower achieved 172 electricity generation.

09 billion kWh, an increase of 7 in ten years.

40%; Dachaoshan Power Plant has achieved a power generation capacity of 20.

1.2 billion kWh, an increase of 24 in ten years.

97%.

In terms of thermal power, the company’s Anhui and Gansu units benefited from the continued improvement in power supply and demand, and their power generation increased by 26.

70% and 87.

22%; the merged state investment Beijiang 2 * 1 million kilowatt unit was put into operation in June 2018, and the company achieved a total thermal power generation of 171 in the first quarter of 2019.

9.7 billion kWh, an increase of 15 in ten years.

72%.

The reduction in on-grid tariffs and the cancellation of flexible tax rebates have affected performance growth.

Affected by the expansion of the power market and the settlement cycle, the company’s hydropower and thermal power prices in the first quarter of 2019 have been reduced.

The company’s average on-grid tariff for hydropower in the first quarter was zero.

RMB 254 / kWh, a decrease of 12 from the same period in 2018.

5%, of which Yalong River Hydropower decreased by 14.
.

14%, mainly due to the market-based transactions in Sichuan Province advanced to 3 months and the base was higher in the same period last year.

Yalongjiang Company achieved net profit in 2019Q113.

6.6 billion, compared with 17.7% in the same period in 2019
.

A significant reduction of 30,000 yuan.

The trend of on-grid electricity prices of the company’s thermal power units showed a regional differentiation pattern, but it was still dominated by declines. The company’s average on-grid electricity prices of thermal power units in the first quarter of 2019 decreased by 4 compared with the same period in 18 years.

05%.

In addition, due to the cancellation of large-scale hydropower tax rebates, the company’s other income in the first quarter of 2019 was only 18 million yuan, compared with 1 in the same period in 2018.

0.99 million yuan, affecting the company’s 2019Q1 performance for many years.

In summary, the reduction of on-grid electricity prices and the gradual reduction of tax rebates have basically eliminated the benefits brought by the increase in power generation. The company’s net profit attributable to its mother increased by only 6 in the first quarter of 2019.

14%.
When the development of the middle reaches of the Yalong River was underway, supporting the delivery of extra-high voltage lines, the peak of production was ushered in during the 14th Five-Year Plan period.

In 2018, the UHV DC UHV transmission project in the middle reaches of the Yalong River has been included in the list of key transmission and transformation project documents accelerated by the National Energy Administration, and the follow-up construction is further accelerated.
The company has the right to develop the entire Yalong River basin, and currently holds a installed hydropower capacity of 16.72 million kilowatts.

At present, Yangfanggou and Lianghekou Hydropower Station, which are under construction in the midstream, have a total installed capacity of 4.5 million kilowatts, and are scheduled to be put into production in 2021-2023.

The preliminary work of the other 5 power stations in the midstream is effectively progressing. The proposed project totals 7.3 million kilowatts. It is estimated that the company’s installed hydropower capacity will reach 28.52 million kilowatts in 2025.

Earnings forecast and rating: We maintain the company’s net profit forecast for the company from 2019 to 2021 to 48.

200 million, 50.

300 million, 5.2 billion, the corresponding PE is currently 11, 11, and 10 times.

The Yalong River has a stable performance and the largest medium-to-long-term growth potential. This year, the thermal power sector is expected to continue to benefit from the drop in coal prices, improved power generation efficiency, continued improvement in profits, and maintain a “Buy” rating.

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