Funeng (600483): Short-term wind power fluctuates slightly, and medium- and long-term wind power is under construction

Funeng (600483): Short-term wind power fluctuates slightly, and medium- and long-term wind power is under construction
Event: On April 27, the company announced the 2019 first quarter report.Realized income during the reporting period 18.40,000 yuan, an increase of 5 in ten years.17%; net profit attributable to mother 2.12 ppm, an increase of 0 in ten years.30%; deduct non-net profit 1.87 trillion, down 10 a year.55%. Wind power fluctuated in the first quarter, and the amount of wind power on the grid dropped2.44%.1) In Q1 2019, the company’s revenue increased by 5.17%, of which coal-fired electricity generation has grown for ten years.63%, the amount of electricity on the Internet drops by 2 every year.44% (we think it is mainly affected by changes in wind conditions), and the natural gas grid-connected power consumption decreased by 17%.15%.2) The company’s gross profit margin is 14.73%, an annual increase of 1.At 23 points, profitability improved.3) The company obtained 0 from asset disposal.44 ppm, an increase of 100% in ten years, mainly due to the subsidiary Sanyou Company’s acquisition of Fuzhou land acquisition and storage income.4) In cash, the company’s cash ratio is 98.38%, a decline of 10 per year.73pct, operating cash flow / net profit was 161.60%, a decrease of 27 per year.24pct. From the historical situation, the base in the first quarter is relatively small, and the changes in profit quality indicators are relatively continuous. Wind power has become a new growth point for the power leader of the Fujian State-owned Assets Supervision and Administration Commission.Fujian’s wind power resources are of high quality, and the province’s wind power has been fully absorbed, while enjoying the highest on-grid electricity prices. The company’s project returns are leading in the industry.By the end of 2018, the company had put into operation wind power installed capacity71.400,000 kilowatts, 107 wind power installations 北京夜生活网 under construction were approved.100,000 kilowatts (including offshore wind power 89.800,000 kilowatts, onshore wind power17.30 thousand kilowatts), there is plenty of room for growth.At the end of 2018, the company completed the issuance of convertible bonds to raise funds28.300 million, the initial conversion price of 8.69 yuan / share, the raised funds are planned to be used in the construction of wind farms in Waishan, Yangping, Panzhai and Pinghai Bay F area, and the production progress is guaranteed. Coal power is actively expanding endogenously, and gas power returns to a reasonable range.1) In the coal power sector, the company actively achieved growth through endogenous extension. In 2017, it participated in a large-scale project of China Resources Wenzhou 20% equity (received a cash dividend of 1 in the first half of 2018).1.8 billion); In early 2018, 51% equity of China Resources Liuzhi was acquired and consolidated. China Resources Liuzhi is a coal-electricity integration project, and the completion of supporting coal mines will gradually increase the profitability of the project. At the same time, Funeng Group promised to inject coal power resources by 2020.Promote the profit growth of coal power.2) In the gas and electricity sector, Jinjiang Gas and Electricity realized a net profit of 41.39 million yuan in 2018, adding 24 instead of electricity.7.3 billion kWh, the profit in ten years returned to a reasonable range.3) Nuclear power sector. As of the end of 2018, the company’s shareholding construction and reserve of nuclear power projects in Fujian amounted to approximately 16 million kilowatts, and the installed capacity of equity was 3.8 million kilowatts. Investment suggestion: Maintain the rating of “Prudent Overweight”.The company is a leader in coal power and wind power in Fujian Province. It actively promotes the growth of coal power through endogenous epitaxy. At the same time, it vigorously develops wind power sectors with high profit levels and reserves a large number of approved projects.We maintain the company’s net profit forecast for the mother at 2019-2021 to 12.22/13.91/14.76 trillion, a growth rate of 16.3% / 13.8% / 6.1%, corresponding to an estimate of 11 on April 26.5/10.1/9.5 times, maintain the rating of “prudent increase”. Risk warning: coal prices rise, wind power projects are not up to expectations, gas power policy adjustments, small non-embargo lifting and other risks.