Wanneng Power (000543)： Improved profitability with investment income increased significantly in the first half of the performance to achieve high flexibility in performance
Wanneng Power (000543): Improved profitability with investment income increased significantly in the first half of the performance to achieve high flexibility in performance
The main points of the report describe the company’s release of the first half of 2019 performance forecast: in the first half of 2019, the company is expected to achieve net profit attributable to the parent company of 270-400 million yuan, an increase of about 91 compared with the same period last year.85% -184.twenty two%. Several factors of the incident commented together, and the performance in the first half increased significantly.According to the company’s semi-annual performance forecast: in the first half of the year, the company is expected to achieve performance of 270 million to 400 million yuan, an increase of about 91 compared with the same period last year.85% -184.twenty two%.The growth of the company’s performance is mainly due to: 1.Growth in installed capacity.In December 2018, after the company increased its capital, it took a controlling stake in Fuyang China Resources Power; 2.Improved business environment.In the first half of 2019, Anhui’s coal price index fell 4 in a row.80%, a decrease of 29.At 84 yuan / ton, Anhui Province’s power consumption gradually increased from ten to ten years.23%, the growth rate far exceeds the national average of 4.9%, the improvement of the operating environment is conducive to the continued repair of the profitability of the company’s subsidiary power generation assets; 3.Investment income increased significantly.Against the background of the improvement of the operating environment, the company’s equity investment asset investment income effectively increased, and on May 31, 2019, after the completion of the Wanwan Energy Assets settlement, it contributed to the company’s investment income increase, further improving the performance in the first half. Economic growth is under pressure to curb demand for thermal coal, and the coal price hub may remain on a downward trend.China’s Purchasing Managers Index (PMI) for June 2019 was 49.4%, the same as last month, after May again fell below the Rong dry line.Among them, the new order index was 49.6%, a decrease of 0 from the previous month.2 units, indicating that the predetermined quantity of manufacturing products continues to decrease; the raw material inventory index is 48.2%, an increase of 0 from last month.8 units, indicating that the decline in the inventory of manufacturing raw materials continued to narrow.In the second half of the year, economic growth may face severe pressure. Demand for thermal coal may decrease in line with the rapid increase in power consumption. The coal price hub may continue to decline under the loosening of supply and demand, which will help thermal power companies to control costs and release performance elasticity. The improvement rate is planned to be reduced and added to the high sensitivity of coal prices, and the company’s performance improvement is expected to accelerate.Decreasing the minimum tax rate can reduce the 天津夜网 company’s tax and fee burden and recognize more revenue; confirming that under the market-oriented environment of coal prices, the company’s cost has theoretically reached a limited increase.Higher coal prices and the gradual change in the range have allowed Wanneng Power’s performance to surpass its performance sensitivity.Under the current trend of macroeconomic growth under pressure, we are optimistic about the decline of the coal price hub and the tax reform dividend to accelerate the improvement of the company’s performance and transformation. Investment suggestions and estimates: According to the company’s latest financial data, we expect the company’s EPS in 2019-2021 to be 0.38 yuan, 0.57 yuan and 0.68 yuan, the corresponding PE is 13 respectively.18 times, 8.86 times and 7.40 times, maintain the company’s “Buy” rating.杭州桑拿网 Risk Warning: 1. Risk of deterioration of power supply and demand environment; 2. Coal prices are at risk of unsustainable growth.