Lin Yang Energy (601222) 2019 Interim Report Review: Smart Distribution Power Business Rebounded and Power Generation Business Stable Growth
The event company released its semi-annual report for 2019 and achieved revenue of 16.
700 million (previously +3.
4%); achieve net profit attributable to mother 4.
20,000 yuan (ten years +5.
The company’s consolidated gross profit margin in the first half of the year was 46.
1% (twice +2.
6pcts), mainly due to the increase in the proportion of high gross margin power generation business.
The company’s three fees and research and development expenses accounted for a total of 21.
7% (previously +2.
3pcts), mainly due to: 1) the increase in financial costs of convertible bonds (+17 each time).
0%) and 2) R & D expenses increased (+44 for the whole year).
The increase in power generation business revenue has led to an increase in comprehensive gross profit margin, and system integration is expected to achieve steady growth. In the first half of 2019, the company will gradually install about 1.
5GW, revenue from power generation business7.
400 million (previously +11.
2%), accounting for 43% of income.
The company’s power plants are all located in the central and eastern regions where consumption is good.
The company’s existing 400MWN high-efficiency double-sided battery module production line has a mass production efficiency of more than 21.
8%, and the double-sided factor exceeds 85%. The company has started the Topcon technology upgrade of the existing production line. After the upgrade, the average conversion efficiency of mass production has reached 23%. The company has locked Topcon equipment and expects to complete GW-level Topcon battery modules in 2020.
Relying on the advantages of N-type high-efficiency components and high-efficiency operation and maintenance, the company won multiple bidding and parity projects, and cooperated with large-scale central enterprises such as China Power Construction Corporation and China Guangdong Nuclear 武汉夜网论坛 Power Corporation to develop power stations, laying a foundation for the company’s system integration business development.
The electricity meter ushers in the replacement cycle. The ubiquitous electric power IoT construction promotes the increase of the smart sector. In 2018, the electricity meter business achieved revenue13.
300 million, at least -25.
4%, realizing revenue 8 in the first half of 2019.
700 million, ten years +10.
Around 2010, the State Grid started the installation of smart meters. We expect that the State Grid smart meters will gradually enter the replacement cycle in 2019, driving the company’s smart meters and power consumption information collection system revenue growth.
In the first half of 2019, the company won about 600 million orders for power grid system meters, and overseas orders exceeded 4 million U.S. dollars. We believe that the replacement cycle of the national grid meter and the ubiquitous power IoT construction will open up smart meter space, and the company’s early overseas market layout will welcomeCome to harvest season.
Estimation and rating: Considering that the domestic bidding for PV online will bring some uncertainty to the PV market in the short to medium term, we lower the company’s EPS for 2019-2020 to 0.
56 yuan (the original value is 0.
59 yuan), plus EPS 0 in 2021.
66 yuan, the current price corresponding to 2019-2021 PE multiples are 9/8/7 times.
We are optimistic about the company’s long-term growth space as a high-quality industrial and commercial distributed power generation operator and maintain the company’s “Buy” rating.
Risk reminder: The construction of distributed generators fails to meet expectations; the production capacity of high-efficiency components is less than expected.