SDIC Power (600886): Yalong River midstream development steadily promotes thermal power to continue to contribute to performance flexibility

Event: The company released its 2018 annual report, and the company achieved revenue of 410 in 2018.

11 ‰, an increase of 29 per year.

6%; net profit attributable to mother 43.

6.4 billion, an annual growth of 35.


The company’s annual report performance slightly exceeded expectations.

  Key points of investment: Water, fire, volume and price go up, performance flexibility is prominent.

By the end of 2018, the company had put into operation a holding installed capacity of 3,405.

500,000 kilowatts, of which 16.72 million kilowatts of hydropower installed capacity, accounting for 49.

10%, thermal power installed 1575.

600,000 kilowatts, accounting for 46.

27% of wind power installed capacity is 110.

100,000 kilowatts, accounting for 3.

23%, photovoltaic installed 47.

800,000 kilowatts, accounting for 1.


The installed structure of the company is mutually beneficial. In 2018, both the water and fire sectors achieved both volume and price increases, and the performance elasticity was prominent.

In terms of hydropower, the company’s hydropower sector achieved 843 power generation.

9.5 billion degrees, an increase of ten years.

67%, of which the Yalong River hydropower generation has increased by 2 every year.

37%; integrated on-grid electricity price for hydropower is 0.

268 yuan / degree, increase by 6 every year.

67%, of which the Yalong River electricity price increased by 5.


In terms of thermal power, as H1 2018 and H2 2017 North China Phase II and Meizhou Bay Phase II have been put into operation, the company’s thermal power installed capacity has been significantly improved, and its power generation capacity has been further enhanced. At the same time, the company’s regional power demand is good and the hydropower in some areas is dry.The utilization hours of the company’s thermal power units have increased significantly (an increase of 823 hours per year). With the coal price remaining high, the utilization hours of the thermal power sector have increased and brought performance flexibility.

  Carry out extensional acquisitions and lay out innovative business development.

The company actively expands business development through various channels such as mergers and acquisitions.In 2018, the company successfully acquired 100% equity of 300,000 kilowatt large-scale photovoltaic projects in Nanzhuang, Yunnan, and 100% equity of Afton’s 50,000 kilowatt onshore wind power project in Britain.Environment (Company 8.

900 million acquisition of Han Blue Environment 8.

62% equity), and registered SDIC Environmental Energy Co., Ltd. as an investment platform for waste-to-energy, solid waste treatment and environmental protection industry projects; steadily involved in power sales and distribution projects, and newly established Anhui Guoxuan Energy SalesThe company invested in several incremental exchange network projects.

  By using renewable debt and other financing methods, while raising construction funds, the interests of existing shareholders are protected.

The company issued three renewable debts in 2018, with a total size of 40 trillion. At the same time, the company announced the termination of the rights issue plan in February 2019 (the company issued an announcement in November 2017, and plans to allocate 2 for every 10 shares.

2 shares were placed to all shareholders, and the proposed capital is not more than 7 billion for capital increase of the Yalong River Hydropower and the construction of Lianghekou and Yangfanggou hydropower stations. Considering the completion of the above-mentioned rights issue plan, Lianghekou and YangfanggouIt has not yet been put into production. If the plan is implemented, it is expected to significantly dilute the current performance.

The annual report shows that the size of SDIC Power’s overseas investment in 2019 is US $ 5.4 billion, of which US $ 2 billion will be used for the development of the Yalong River and 30 trillion will be used for other domestic investment projects. The company intends to renew the company by issuing corporate bondsDebt, ultra short-term financing bills and other methods of external financing of 11 billion, budget funding requirements.

Reasonably raise construction funds to better protect the interests of existing shareholders.

  When the development of the 上海夜网论坛 middle reaches of the Yalong River was underway, supporting the delivery of extra-high voltage lines, the peak of production was ushered in during the 14th Five-Year Plan period.

In 2018, the UHV DC UHV transmission project in the middle reaches of the Yalong River has been included in the list of key transmission and transformation project documents accelerated by the National Energy Administration, and the follow-up construction is further accelerated.

The company has the right to develop the entire Yalong River basin, and currently holds a installed hydropower capacity of 16.72 million kilowatts.

At present, Yangfanggou and Lianghekou Hydropower Station, which are under construction in the midstream, have a total installed capacity of 4.5 million kilowatts, and are scheduled to be put into production in 2021-2023.The 杭州桑拿网 preliminary work of the other 5 power stations in the midstream is effectively progressing. The proposed project totals 7.3 million kilowatts. It is estimated that the company’s installed hydropower capacity will reach 28.52 million kilowatts in 2025.

  Earnings forecast and rating: Taking into account subsequent water supply, electricity prices, coal prices, and electricity supply and demand, we raised our company’s net profit forecast for the company from 2019 to 2020 to 48.

200 million, 50.

300 million (45 and 47 before adjustment respectively.

400 million US dollars, plus 205.2 million net profit forecast attributable to mothers, the current corresponding PE is 12, 11 and 11 times respectively.

The Yalong River has a stable performance and the largest medium-to-long-term growth potential. This year, the thermal power sector is expected to continue to benefit from the drop in coal prices, improved power generation efficiency, continued improvement in profits, and maintain a “Buy” rating.