Dongfang Electric (600875) annual report comment: rapid growth in revenues from wind power, power station services, modern services and other sectors Nuclear power has brought new results
Downgrade of 2018 revenue quarter by 8.
15%, net profit attributable to mothers increased by 6 in ten years.
In 2018, the company achieved total operating income of 307.
0.6 billion, downgraded by 8 every year.
15%; net profit attributable to mother 11.
29 ppm, an increase of ten years6.
77%; basic profit income is 0.
37 yuan / share; main business gross profit margin 20.
72%, rising by 1 every year.
24pct (the above annual data can be readjusted).
Revenue from wind power, power station services, and modern services grew rapidly.
By segment, in 2018, the company’s clean and efficient 南京桑拿网 energy equipment segment achieved revenue of 170.
79 trillion, down 17 a year.
72%, (including thermal power, nuclear power, and gas turbine revenue changes of about -15%, -11%, and -37%, respectively), with a gross profit margin of 20.
09%, an annual increase of 1.
27 points; the renewable energy equipment segment achieved revenue of 40.
08 million yuan, an increase of 4 in ten years.
25% (among which, wind power and hydropower revenue increased by + 28% and -10% respectively), and gross profit margin was 12.
23%, a decline of 0 per year.
73pct; engineering and trade sector realized income 34.
81 ‰, a decline of 5 per year.
35%, gross margin of 17.
26%, an annual increase of 0.
44 points; modern manufacturing service industry board realized income 34.
40,000 yuan, an increase of 36 in ten years.
7% (among which, revenues from power station services and financial services sectors increased by + 29% and + 49% respectively), and gross profit margin was 55.
45%, an increase of 9 per year.
13 points; the emerging growth industry segment achieved revenue of 27.
$ 3.4 billion, an annual increase of 2.
79%, gross profit margin 23.
88%, a decrease of 5 per year.
There are sufficient orders in hand, and the orders in the new decade have grown steadily.
In 2018, the company added 349 orders.
3 ppm, a ten-year increase of 8.
7%, of which 10 are export items.
$ 100 million.As of the end of 2018, the company had orders of USD 86.4 billion, and in terms of order structure, efficient clean energy equipment accounted for 63%, renewable energy equipment accounted for 19%, engineering and trade accounted for 9%, modern manufacturing services accounted for 2%, and emerging growth industries7%.
The nuclear power construction restarted, and the company fully benefited.
The company is a leading enterprise in the field of nuclear power main equipment in China. In 2018, the nuclear island equipment market share reached 65.
9%, the market share of conventional island equipment reached 44.
In November 2018, two CAP1400 units were approved. In January 2019, four Hualong No.1 units including Zhangzhou Nuclear Power and Huizhou Taipingling Nuclear Power were approved. Nuclear power construction is ready to restart, and we expect the company to fully benefit.
The layout of emerging industries helps long-term development.
(1) Hydrogen fuel cells: The first batch of 10 hydrogen fuel cell-powered city buses with independent intellectual property rights were demonstrated in Sichuan Province, and safety, stability and reliability have been initially verified; (2) Small and medium steam turbines: industry-leading small and medium steam turbinesProducts used in photothermal, drive, and environmental protection industries, highly recognized by users; (3) High-voltage inverters: high-dynamic, high-performance, high-reliability high-voltage inverters for market applications. The fifth-generation inverters have completed design and development andPrototype trial production.
We expect the layout of emerging industries to provide long-term support for this development.
Earnings forecasts and investment advice.
We estimate that the company’s net profit attributable to the parent will be 16 in 2019-2021.
3.1 billion, 18.
310,000 yuan, 20.
51 ppm; budget benefit is 0.
53 yuan, 0.
59 yuan, 0.
With reference to comparable companies, the company is given 20-25 times PE in 2019, corresponding to a reasonable value range of 10.
25 yuan / share, preliminary market rating.
(1) Delivery progress of orders in hand exceeds expectations; (2) Segmentation of demand for equipment such as coal-fired units.