Yangtze Power (600900) 2019 Semi-annual Report Comment: Power Generation Creates Historical Value Over the Period

Yangtze Power (600900) 2019 Semi-annual Report Comment: Power Generation Creates Historical Value Over the Period
Investment Highlights The company disclosed its semi-annual report for 2019: realized operating income of 203.6.3 billion (+6.00%), net profit attributable to shareholders of the listed company was 85.7.2 billion (+0.59%), after the company excludes non-recurring gains and losses, the net profit attributable to the mother is 78.08 thousand yuan (-0.11%), with a budget benefit of zero.3897 yuan / share (+0.59%), with an expected average ROE of 5.94% (-0.3pct). The sale 成都桑拿网 price increased significantly, mainly due to better water conditions in the first half of the year.Reporting information, the company achieved 853 power generation.8.9 billion kWh, an increase of 5 per year.01%, a record high in the same period of history, no water was abandoned due to equipment problems.Among them, the Three Gorges, Xiluodu, Xiangjiaba, and Gezhouba generators have achieved 408 power generation respectively.25, 228.09, 130.09 and 87.4.6 billion kWh; rising by 4 each year.91%, 6.58%, 3.96% and 3.04%.The corresponding utilization hours of power generation amounted to 1877h, an increase of 90h in the same period of 18 years earlier. Wudongde, Baihetan Hydropower Station beach power production preparations are progressing in an orderly manner.The company deeply implements the concept of “combination of construction and management, seamless transfer”, and selects more than 300 technical backbones to be stationed in Wudongde, Baihetan construction sites, and fully participates in engineering construction related work.Draw up power production preparation plans, comprehensively plan the pick-up and power generation work; and build a standardized management system and production technology system through informatization. Profit forecast and estimation: In terms of stock, the company’s market electricity ratio in 2018 is only 11%, and profitability is not sensitive to market-based discounts.Steady performance growth, high proportion of dividends, the company’s dividend yield is expected to remain at 3 in the long run.In the range of 5% -4%, the value is becoming more prominent in the context of the decline in domestic interest rates.In terms of increments, the construction work of Wudongde and Baihetan Power Plants is progressing in an orderly manner. In the future, the company’s installed capacity and performance are expected to achieve a significant improvement again.We estimate that the net profit attributable to shareholders of the parent company in 2019/20/21 will be 229, respectively.44/231.18/231.24 ppm, equivalent to 1, respectively.04/1.05/1.05 yuan / share, currently 18.RMB 62, corresponding to 17 for PE.9X / 17.7X / 17.7X, maintain the company’s “overweight” rating. Risk warning: weak demand for social power; lower-than-expected incoming water; and increasing market electricity transaction ratio