Inner Mongolia Huadian (600863): Regional power market picks up, “volume and price rise”, profits rise sharply
Event: The company released an annual report with 2018 operating income of 137.
4.3 billion, an annual increase of 16.
64%; net profit attributable to mother 7.
8.3 billion, an annual increase of 52.
23%; deducted net profit from return to mother 6.
9.9 billion yuan, an annual increase of 437.
54%, and distributed a cash dividend of 0 to every 10 shares for all shareholders.
96 yuan (including tax).
At the same time, the company released the shareholder return plan for 2019-2021. In principle, the profit distributed in cash each year is not less than 70% of the distributable profit of the consolidated statement realized in the year, and the maximum dividend payout is not less than 0.
Opinion: Electricity and electricity prices are “double-rising”, and the regional market is fully ahead.
Reporting information, the company completed the generation of 531.
8 billion kWh, an increase of 56 per year.
9.7 billion kWh, an annual increase of 12.
00%; completed sales of 490.
4.8 billion kWh, an increase of 52 per year.
5.8 billion kWh, an increase of 12.
01%; the average unit price of electricity sold was 253.
64 yuan / kilowatt, an increase of 10 per year.
72 yuan / kw, an increase of 4 per year.
41%; completed sales of 11.81 million GJ, an increase of 1.96 million GJ per year, an increase of 19.
In 2018, the company completed an average of 4,832 hours of power generation hours, an increase of 529 hours per year and an increase of 10.
95%, of which: the utilization hours of the Mengxi Power Grid increased by 690 hours; the utilization hours of the units sent directly to the North China Power Grid increased by 321 hours.
The company’s regional power generation accounts for 9% -10% of the two major power markets in Mengxi and Beijing, Tianjin and Tangshan.
And the increase of electricity has exceeded the average increase of electricity in the region.
We believe that the significant increase in profits, in addition to the improvement in the electricity market, volume and price increases, and narrowing of electricity prices for trading, the company has disposed of reduced inefficient and inefficient assets since 2017, and acquired high-quality wind power projectsThe integration of electricity into production has caused a qualitative change in the company’s fundamentals, forming a good development pattern of cross-regional power transmission, coal-electricity integration, and new energy and conventional energy.
In 2019, the Mengxi region is expected to continue to grow rapidly, and the North China region has increased steadily.
Gross profit margin 21.
43%, an annual increase of 3.
94%, cost and expenses are strictly controlled.
In the report baseline, the company’s total production costs totaled 107.
9.8 billion yuan, an increase of 11.
06%, lower than the increase in revenue and profit.
Among them, operating costs (including electricity purchase costs, water costs, repair costs, materials costs, sewage charges, other costs) incurred a total of 9.
78 trillion, a year-on-year decrease of 59.6 million, a decrease of 5.
7%, reflecting the company’s savings and cost reduction benefits.
The company’s standard coal unit price was 345.88 yuan / ton, an increase of 19 per year.
2 yuan / ton, an increase of 5.
88%, lower than the increase in the market price of thermal coal.
Administrative expenses and financial expenses increase by 3 each year.
96%, far lower than income and profit growth.
We believe that the company will continue to maintain strict cost control practices. Coal procurement through long-term long-term agreements and coal-electricity integration projects to maintain fuel costs within the overall controllable range. In 2019, the price of coal in Mengxi will continue to decline and is expected to decreaseCosts increase profits.
The cash dividend policy in 2018 and the shareholder return plan for the next three years have grown significantly compared with previous years. The major shareholder increase plan shows the group’s confidence.
The company pays 0 for every 10 shares.
96 yuan (including tax), the cash dividend rate is as high as 71.
24%, dividend yield 3.
32%, with a higher margin of investment safety, compared with 40 in 16-17.
The 89% dividend rate has increased significantly.
At the same time, the company issued a shareholders’ income plan for the next three years to ensure the continuity and stability of profit distribution. In principle, the profit distributed in cash will be more than 70% of the distributable profit of the consolidated statement realized in the year, and sometimes the dividend is not low.At 0.
The higher cash dividend plan reflects confidence in the company’s profitability.
The company announced on February 14 that Donghuaneng Group will increase its holdings of the company by no less than 200 million and no more than 500 million yuan within 6 months. Until March 15, it has increased its holdings by 200 million U.S. dollars.The group’s confidence in the development of listed companies and recognition of the company’s value.
The company is a leader in thermal power generation in Inner Mongolia. In the future, Mengxi will maintain a high growth rate of power generation. North China will increase steadily. Coal cost control has a geographical advantage. It is estimated that the net profit for 19-21 will be 11.
55 billion,无锡桑拿网 corresponding to PE16.
Maintain the “Highly Recommended” rating.
Risk reminders: the risk of rising coal prices; the risk of falling electricity prices due to industry policies; large demand for electricity