Lin Yang Energy (601222): Smart meter recovery with stable power station operation

Lin Yang Energy (601222): Smart meter recovery with stable power station operation

Investment Highlights 19H1 performance increased by 5.

3%: The company released its semi-annual report for 2019, reporting that a series of companies realized revenue16.

6.8 billion, an increase of 3.

37%; net profit attributable to parent company4.

180,000 yuan, an increase of 5.

30%.

The corresponding EPS is 0.

24 yuan.

Among them, in Q2 2019, it achieved revenue of 9.

7.3 billion, down 5.

52%, a ring increase of 40.

12%; net profit attributable to parent company2.

6.3 billion, an increase of 5.

10%, the ring increased by 69.

49%.

The 2019Q2 corresponding EPS is 0.

15 yuan.

The smart power distribution industry is picking up, and smart meter orders are redundant: In the first half of 2019, the company won about 2 bids in the State Grid and South Grid tenders.

400 million (62% increase) and 3.

7.9 billion (same increase of 57%), the number and amount of winning bids are among the best.

Overseas, the strategic advancement of major customers and the development of independent brand business went smoothly, with overseas sales of USD 28.07 million and orders in hand reaching USD 40.72 million.

The company actively responded to the construction of the “Ubiquitous Electricity Internet of Things” of the State Grid. In July 2019, the company’s single-phase load identification energy meter successfully won the first batch of non-plug-in load identification smart meter projects of the State Grid.

The operating benefits are prominent, and the GW-class N-type high-efficiency startup: In the first half of 2019, the company’s new energy segment revenue was 8.

1 megabyte, basically flat for one year.

Among them: 1) Internet power 9.

1.9 billion kWh, an increase of 10.

86%.

Electricity income 7.

3.7 billion, an increase of 11.

2%.

As of the first half of 19, various types of photovoltaic power generation were merged and connected to the grid1.

5GW, an increase of 50MW per year.

Distributed power stations have more than one reserve project in hand.

6GW, further consolidating the leading edge.

2) EPC system integration business at home and abroad continued to advance, and the company successfully extended its strategic cooperation agreement with China Power Construction Investment Corporation.

In the future, the EPC business will promote continued growth in performance; 3) N-type high-efficiency battery module production capacity reaches 400MW.

Battery mass production conversion efficiency> 21.

8%, the technology upgrade from N-PERT to TopCON has been initiated, and TopCON equipment has been scheduled. It is estimated that a GW-class N-type high-efficiency 厦门夜网 will be completed in 2020, and the battery conversion efficiency can reach 23% after completion. Comprehensive energy services continue to advance: It is reported that the company’s smart energy efficiency management cloud platform has covered 3769 (18H1, 2557) large industrial and commercial energy-consuming households, deployed more than 37,000 (18H1, 25000) energy efficiency collection points, and managed electricity loads exceeding 820MW (18H1,550), the daily power consumption exceeds 21 million kWh (18H1, 1500), the number of users (load) has increased significantly, and the layout has continued to expand.

The company participated in the Hebei Coal Clean and Heating “Coal to Electricity” project, and has successfully won a number of projects with a total bid of about 18 million.

The project has been promoted to more than 2,200 households, and it is expected that more than 3,000 households will be promoted to achieve sales of over 20 million yuan.

The air force won the bid of Hebei 1.

The US $ 4.8 billion transportation system energy-saving renovation project is expected to be completed in September.

19H1 expense rate growth has increased year by year, turnover rate growth rate: In the first half of 2019, the company’s period expense growth increased by 15%.

46% to 3.

63 ppm, during which the expense ratio increased by 2.

28 up to 21.

75%.

Among them, the R & D expenses increase by 44 each year.

65% to 0.

580,000 yuan, mainly due to the increase in cost-based research and development; net cash inflow from operating activities was zero.

21 ppm, a decline of 46 per year.

45%; sales of goods received cash15.

580,000 yuan, an increase of 19 in ten years.

71%.

Closing advance budget + contract debt 0.

50,000 yuan, an increase of 46 in ten years.

61%.

Ending accounts receivable 31.

54 ppm, an increase of 28 in ten years.

87%, accounts receivable turnover days increased by 78.

48 days to 323.

92 days.

Period-end inventory + contract assets 6.

21 ppm, an increase of 62 in ten years.

05%; inventory turnover days increased by 32.

07 days to 108.

35 days.

Earnings forecast and investment rating: We expect the company’s 19-21 results to be 9 respectively.

62, 11.

54, 13.

4.7 billion, an increase of 26.

5%, 20.

0%, 16.

7%, corresponding to EPS is 0.

55, 0.

66, 0.

77 yuan, maintain “Buy” rating. Risk warning: policies fail to meet expectations, competition intensifies