Senyuan Electric (002358) First Coverage Report: Finding New Growth Points in Transmission and Distribution Business Adjustment Period
This report reads: Senyuan Electric’s traditional power transmission and distribution business has entered an adjustment period due to industry and macro influences. New energy business has been affected by policy changes to adjust its structure and shrink photovoltaic power generation wind power.
The first coverage was given a “Neutral” rating.
Investment Highlights: Cover for the first time and give a “Neutral” rating.
It is expected that EPS for 2019-2021 will be 0.
26 yuan, the average industry reference company in 2019 is 1.
59 times PB. Considering that the company’s traditional main business has entered an adjustment period, the performance of new business restructuring performance has increased variability and uncertainty, and it is slightly lower than the industry average of 20191.
51 times PB, target price 8.
The transmission and distribution business entered an adjustment period, and the new energy business adjusted its structure.
Senyuan Electric’s traditional main business is mainly high-voltage complete equipment and low-voltage complete equipment. It is a national key emerging enterprise.
At present, investment in the power grid is growing rapidly. At the same time, some corporate customers of Senyuan Electrification are affected by financial constraints. The project has been delayed, suspended, and the construction period has been extended.
Another major part of the company’s 武汉夜生活网 main new energy business is photovoltaic EPC projects.Since 531 in 2018, since the new policy, the overall policy guidance has been maintained to supplement the general direction of affordable Internet access, resulting in photovoltaic EPC business profitability.Significantly shrink, and profitability may decline.
The company took the initiative to adjust the new energy business, abandoned the photovoltaic power generation project with slow capital recovery, and increased revenue.
Open up new markets and find new growth points for performance.
The new market is expected to bring new growth. Due to the constraints of the time routine of wind power supplementary policies in 2020 and 2021, domestic wind power will enter the rush installation period in 2019-2021, bringing a lot of project construction demand.
Since 2018, 上海夜网论坛 the company has started to construct wind power projects in the new energy field, and has already obtained some orders, which is expected to benefit from the wave of wind power installation.
A breakthrough in nuclear power equipment sales has also been achieved.
At the same time, the company actively grasps the development potential of the “Belt and Road” and seeks overseas breakthroughs in power engineering.
It also cooperates with Xuchang Zhongfeng Precision Machinery Manufacturing to integrate robot products and industrial robot systems.
Orders for wind power projects increased, project profitability improved, and smart manufacturing made progress.
Risks of overseas EPC projects, repayment risks caused by arrears of new energy subsidies.