SDIC Power (600886): GDR issue smoothly promotes divestment of small thermal power to promote asset structure upgrade
Event: Recently, the company issued a letter on the issuance of GDR and disclosure of potential listing intentions on the London Stock Exchange. It intends to issue a Global Depositary Receipt (GDR) and list it on the standard section of the official list maintained by the Financial Conduct Authority of the United Kingdom.Trading in the Shanghai-London Stock Exchange on the main board of the London Stock Exchange.
The listing has been approved by the China Securities Regulatory Commission.
Opinion: GDR issuance is progressing smoothly, laying a good foundation for overseas business expansion.
The company plans to issue no more than 6786.
20,000 Global Depositary Receipts (GDRs), corresponding to the addition of one share of the base stock no more than 6.
7.9 billion shares, not more than 10% of the total share capital of A shares.
The existing company’s GDR issuance plan has been approved by the Securities and Futures Commission, and is in the process of being smoothly carried out. After the successful issuance, it will be listed on the London Stock Exchange and traded through the Shanghai-London Stock Exchange.
The funds raised in this GDR issuance will be used to expand overseas renewable energy business and repay overseas debt. At present, the company has deployed renewable energy business overseas through mergers and acquisitions, and successively acquired the British Afton onshore wind power project (50,000 yuan in October 2018).kw), acquired Bangkok’s waste-to-energy project in Thailand in July 2019 (0.
980,000 kilowatts), the funds raised this time will be used to further expand the company’s overseas renewable energy business layout. It is expected that the overseas business mergers and acquisitions and the volume of revenue will significantly increase in the future, and will also strengthen the company’s overseas influence and provide overseasLay a solid foundation for business development.
Actively divestiture small thermal power assets, have a clear goal of transition to clean energy, and continue to upgrade the asset structure.
In order to promote the implementation of the company’s overall strategic layout and adjust its asset structure, the company recently listed on the Shanghai Stock Exchange to transfer six thermal power assets, including: 51% equity of SDIC Xuancheng, 55% equity of SDIC Beibu Gulf, and SDIC Ili 60% Equity, Jingyuan Second Power 51.
22% equity, 35% equity in Huaibei Guoan, and 45% equity in Zhangye Power.
Guangxi Investment Group Co., Ltd. has been the assignee of 55% of Beitou Bay of SDIC, and the transfer price is 5.
91 ppm, the remaining 5 target companies will carry out the second listing package transfer at 70% of the first listing price.
The six thermal power assets divested by the company this time have poor profitability or have been replaced for a long time. Six thermal power companies replaced 6 in 2018 in total.
880,000 yuan, totaling 0 in the first half of 2019.
The company’s profitability will be further improved after the successful divestiture, and the power asset structure will continue to be optimized and upgraded.
At present, the company’s installed capacity of clean energy accounts for 54% of the installed installed capacity.
15%, the company’s transformation to clean energy has clear goals and its asset structure is constantly being optimized.
In the first three quarters, power generation has increased, and revenue and profits have increased steadily. Due to the impact of market-based charge trading, the average on-grid electricity price fluctuated slightly.
In the first three quarters, the company’s territorial holding company gradually completed 1,216 power generation.
7.2 billion kilowatt-hours, with 1180 grid-connected electricity.
5.9 billion kWh, respectively increased by 8.
17% and 8.
In terms of hydropower, although the incoming water from the Yalong River was drier than the same period of last year, the amount of abandoned water was reduced. The incoming water from the Small Three Gorges and the Dachaoshan of SDIC were more abundant than the same period last year. Therefore, the hydropower generation in the first three quarters was 667.
9.3 billion kWh, an increase of 4 per year.
06%; In terms of thermal power, as the North Xinjiang Phase II unit was put into operation in June last year, Gansu Province ‘s power output increased, and the social power consumption in Guangxi and Xinjiang increased rapidly. The utilization hours of thermal power units increased. Thermal power generation in the first three quartersThe amount is 522.
6.3 billion kWh, an increase of 12 per year.
41%; in wind power, benefiting from SDIC Guangxi Longmen Wind Power’s gradual grid connection from June last year to February this year, the new units of Yandun and Jingxia Wind Farm were put into operation from June to August this year, and the wind resources of some power plants are better than last year.During the same period, the short-term situation of wind power consumption deteriorated, with wind power generation in the first three quarters of 19.
3.4 billion kWh, an increase of 28 per year.
30%; In terms of photovoltaic power generation, due to the company’s acquisition of Nanzhuang Photovoltaic, Toksun Photovoltaic, Huzhou Photovoltaic, and SDIC Dali Binchuan Photovoltaic’s second phase of production, the photovoltaic power generation increased significantly, the first three quarters.
8.2 billion kWh, an increase of 131 in ten years.
In terms of electricity prices, the reform of the electricity system has been gradually promoted. In some provinces and autonomous regions, market-oriented transaction types of electricity have continued to increase and the scale has expanded. At the same time, due to the settlement prices and settlement cycles, the on-grid electricity prices of power plants have improved.The average on-grid electricity price is 0.
303 yuan / kWh, a decrease of 3 compared with the same period last year.
In addition, the company’s overseas power plants also have high operating benefits. The Afton 50,000 kW onshore wind power project in the UK has completed a total of electricity generation in the first three quarters1.
01 billion kWh, Bangkok, Thailand 0.
In the first three quarters of the 980,000-kilowatt waste-to-energy project, a total of 0 electricity generation was completed.
1.9 billion kilowatt hours.
The increase in power generation and on-grid power generation of domestic and overseas power plants has enabled the company’s first three quarters of operating income and performance to have steadily increased, achieving operating income of 322.
4.6 billion, an annual increase of 6.
47%, net profit attributable to mother 43.
33 ppm, an increase of 20 per year.
In the future, the projects under construction will be gradually put into production, and the overseas business will gradually be laid out. The company’s power generation scale will further expand, and its revenue performance will continue to improve.
The development of the core assets of the Yalong River is gradually progressing, and the peak of production will be ushered in the next ten years.
The Yalong River Hydropower, where the company holds a 52% stake, is the 杭州桑拿网 only hydropower development body in the Yalong River basin, and has outstanding advantages such as reasonable development and unified dispatching.
The Yalong River basin has abundant water, concentrated drop, small hydropower inundation loss, outstanding scale advantage, significant cascade compensation benefits, both consumption and resettlement advantages, superior economic and technological indicators, and improved operating efficiency, ranking 3rd among 13 major hydropower bases.
The development capacity of this basin is about 30 million kilowatts.
In the end, the five power stations (Jinping I, Jinping II, Guandi, Tongzilin, Ertan Hydropower Station) planned for downstream construction have all been put into operation, with a total installed capacity of 14.7 million kilowatts.
Seven power stations planned for 杭州桑拿 construction in the middle reaches of the river (two river mouths, first roots, second roots, Lenggu, Mengdigou, Yangfanggou, Kara), which can be put into operation in 2021-2027, with a total installed capacity of 11.87 millionkilowatt.
Among them, Yangfanggou and Lianghekou Hydropower Stations have successively approved the start of construction, with a total installed capacity of 4.5 million kilowatts. They are scheduled to be commissioned between 2021 and 2023. The remaining 5 power plants in the midstream are also progressing in an orderly manner.Coming to the peak of midstream power station production is expected to start a new round of rapid growth for the company.
Comprehensive power companies with core high-quality assets can expect future growth and maintain the “strongly recommended-A” level.
The company is a comprehensive electric power listed company with hydropower as its mainstay, water and fire, and scenery as its complement. Hydropower has an installed capacity of 16.76 million kilowatts. It is the third largest listed company in hydropower installed capacity in the country and is in a leading position in the industry.
At the same time, the company is also actively engaged in the expansion of renewable energy power generation business overseas, clarifying the main power generation structure of clean energy, with obvious advantages in power supply structure, outstanding economic and social benefits, and reduced risk resistance.
Around 2021 will usher in the peak production of the middle reaches of the Yalong River. The company’s large hydropower platform advantages will be highlighted. It is estimated that the company’s net profit attributable to the company will be 48 in 2019-2021.
68 ppm, corresponding EPS is 0.
79, corresponding estimates are 11.
8. Maintain the “Highly Recommended-A” rating.
Risk reminders: GDR issuance progress is less than expected, overseas business expansion progress is less than expected, coal prices are rising, water supply is less than expected, and systemic risks in the broader market.