Yangtze Power (600900): The company’s performance has grown steadily, asset depreciation and financial costs have continued to decline
Event: On April 30, the company released the 2018 annual report and the 2019 first quarter report. In 2018, the company achieved operating income of 512.14 ppm, a ten-year increase2.13%, achieving net profit attributable to mother 226.11 ppm, an increase of ten years.57%, divided into 0 dividends.68 yuan; In Q1 2019, the company realized operating income of 86.08 million yuan, an increase of 5 in ten years.62%, net profit attributable to mother 29.16 ppm, a ten-year increase2.96%. Opinion: The generation of power generation has grown steadily in 18 years, and the expansion of market-oriented transactions has not affected the level of electricity prices.8.2 billion kWh, an increase of 45 over the previous year.8.9 billion kWh, an increase of 2.18%, through optimizing 北京男士会所 joint dispatching, cascade generators gradually save water and increase power generation by 99.300 million kilowatt hours, the benefits of additional issuance are obvious.In 18 years, the average utilization time of the unit was 4,736 hours, which was increased by 101 hours per year, of which the Three Gorges Power Plant was 4,541.26 hours, increase by 3 every year.24%; Gezhouba Power Station is 7118.14 hours, 3 reductions per year.07%; Xiluodu Power Station is 5223.58 hours, an increase of 6 per year.84%; 5520 for Xiangjiaba Power Station.96 hours, increasing by 0 every year.71%. In terms of on-grid electricity prices, the company’s market-oriented trading power scale in 2018 was 236.100 million degrees, an increase of 42 per year.70%, but the company’s comprehensive electricity price has not been affected. In 2018, the company’s average on-grid electricity price was 276.86 yuan / MWh, increase by 0 every year.8 yuan / MWh, it is expected that the scale of the subsequent market-oriented transactions will continue to expand, which will have a small impact on the company’s comprehensive electricity price. Operating costs fell 4.4.9 billion, gross margin increased by 1.The company’s operating costs in 2018 for the 68 years were 190.0.5 billion, down 4 every year.49 trillion, of which the operating cost of the power business was 189.44 trillion, down 2 a year.2.3 billion.The reduction of other expenses such as asset depreciation and maintenance costs is a trend of decreasing operating costs. In 2018, the company’s asset depreciation scale reached 122.09 million yuan, reduced by 0 every year last year.US $ 7.6 billion, mainly due to the reduction in depreciation due to the depreciation of some assets.Benefiting from electricity growth and cost reduction, the company’s gross profit margin in 2018 was 62.89%, an increase of 1 per year.68 units. The investment scale and the mean value of the income hit a record high, and the index expenditure decreased year by year.19 billion terminated at the end of 2018, the company’s long-term equity investment and available-for-sale financial assets balance was 396.100,000 yuan, an increase of 78 from the previous year.21 trillion, reaching a record high; at the same time, the company added 79 trillion foreign investments in 18 years, achieving investment income of 27.07 million yuan, a record high investment income. As of the end of 2018, the company had interest rate denying the scale reached 1228.9.6 billion, down 125 from the end of 2017.At $ 01 billion, the asset-liability ratio was 54 from the initial period.74% dropped to 51.71%.The company’s financial expenses in 2018 were 58.54 ppm, a reduction of 0 per year.43 trillion, of which interest expense was 59.22 ppm, a reduction of 2 per year.With US $ 1.9 billion, the company has abundant cash flow. It is expected that the size of subsequent interest-bearing debt will continue to decrease, which will help reduce the size of financial expenses. The power generation volume and investment income are all working together, and Q1 performance has achieved steady growth. The company achieved net profit attributable to mothers in the first quarter of 201929.16 ppm, a ten-year increase2.96%, achieved stable growth without being affected by the expected cancellation of tax rebates, mainly benefiting from the simultaneous development of power generation and investment income.In Q1 2019, approximately 361 electricity was generated.7.8 billion kWh, an increase of 4 over the same period last year.In terms of investment income, the company’s Q1 long-term equity investment balance increased by 102.At 95 ppm, the equity method of asset accounting continued to expand, resulting in a Q1 19 investment return of 6.13 ppm, an increase of ten years.400 million yuan. Profit forecast and estimation: The company is expected to achieve revenue of 533 in 2019-2021.12,529.87 and 529.3 billion yuan, 234 net profit attributable to mother.51, 239.42 and 242.23 ppm, achieving an EPS of 1.07, 1.09 and 1.10 yuan, corresponding to the current PE of 15.74, 15.42 and 15.24 times. Risk reminder: incoming water is lower than expected risk, market-based transaction power scale is larger than expected risk, investment income is lower than expected risk