Xinneng Taishan (000720): Two wings of Huaneng Energy Technology Platform take off again
Backed by Huaneng, a gorgeous transitional energy Internet platform: In 2018, the company will reorganize coal, sell electricity, sell industrial park operations and wire and cable businesses that retain profit potential, and develop commodity supply chain businesses (mainly coal).
After the reorganization, relying on 杭州桑拿网 technology to enable the company’s smart supply chain platform as the main body (“one body”) to vigorously explore industrial chain opportunities, through industrial park development and operation business and wire and cable business support (“two wings”) to seek new performance growth.
Integration: trillion dollar supply chain financial market, new opportunities for the company’s industrial chain: the existing supply chain financial system has a low penetration rate, and excellent supply chain financial providers should have 30% of their suppliers covered by supply chain financial products.
According to a 20% penetration rate forecast, the market space reached in 2018 is around 2 trillion.
The company’s key businesses in the transition to a smart supply chain include logistics and warehousing platforms, e-commerce trading platforms, and supply chain financial service platforms, focusing on coal, power accessories, metallurgical product trading, and supply chain financial services.
Based on the Huaneng Group’s power production supply and marketing system, and Shanghai e-commerce may be injected, the company’s supply chain business layout is initially completed.
Revenue in the first half of 2019 was as high as 5.
170,000 yuan, several times higher than last year.
Left: Pathfinder Industrial Park, revitalize land use, diversify development and deepen the thickness of the industrial chain: As a land revitalization platform of Huaneng Group, the company is vigorously developing industrial park development.
At present, the company is holding Nanjing Jiangshanhui and Chongqing Jiangbei District projects. The two projects are well-positioned. In 2018, only the sales revenue of Jiangshanhui Block C accounted for 46% of the total revenue.Office building price 6.
US $ 800 million was sold to Huaneng Real Estate, and construction of the remaining plots of Jiangshanhui is also underway. The next two years may usher in an outbreak.
At the same time, Huaneng Group’s power plant has a lot of idle land, which may be injected into the future.
Right wing: Cable business wins by volume, creating another city of supply chain finance: Wire and cable business grows steadily, forming a synergistic effect with the construction of smart supply chains.
Revenue from cable business in the first half of 20199.
9 trillion, a growth rate of 20 in ten years.
2%, gross margin of 16.
8%, stability helped the company’s performance rebound.
At the same time, wires and cables, as one of the bulk supply chain commodities, form a synergistic effect with the company’s smart supply chain construction.
Investment suggestions We expect the company’s operating income for 2019-2021 to be 39.
4.2 billion, net profit attributable to mother is 5.
400,000 yuan, corresponding to 0 EPS.
60 and 0.
73, corresponding PE is 12, 9, 7 times.
According to the segment valuation method, the company’s target price is 6.
8 yuan, covered for the first time, given a “buy” rating.
Risks Risks that the progress of the project is not up to expectations, the progress of asset injection is not up to expectations, the risk of lifting restricted stocks, and the risk that the increase in accounts receivable and inventory will cause the company’s cash flow to deteriorate.