Guodian Power (600795): Accrual of impairments drag down performance, coal prices drop, promote cost reduction pressure

Event Guodian Power released the 2018 annual report Guodian Power achieved operating income of 654 in 2018.

900,000 yuan, an increase of 56 over the same period last year.

5.7 billion, an increase of 9 in ten years.

45%; net profit attributable to mother 13.

69 ppm, a decrease of 38 per year.

41%, corresponding EPS is 0.

06 yuan.

The company expects an average ROE of 2 in 2018.

48%, with a 17-year rating down 1.

73 units.

A brief comment on the double increase in volume and price helped the company’s steady growth in revenue was affected by the abnormal climate and the early domestic “electricity generation of coal”. In 2018, it reached 6 in the entire society.

85 trillion kilowatt-hours, a significant temporary increase8.

5%, an increase of 1.

9 units.

In the case of better power demand, the company achieved 2132 power generation in 2018.

200 million kWh, an increase of 5 in ten years.

5%, of which thermal power generation capacity is 1488.

500 million kilowatt-hours of hydropower generation capacity of 508.

400 million kilowatt-hours, 132 wind power generation.

200 million kWh, photovoltaic power generation3.

100 million kilowatt-hours, with an increase of 3 each year.

19%, 9.

62%, 18.

51%, -2.


At the same time, the National Development and Reform Commission (NDRC) raised the benchmark on-grid electricity price of coal-fired units starting from July 1, -17, which led to an increase in electricity price swaps in the first half of 2018, and the company’s overall average on-grid electricity price increased by 0.

8 cents per kilowatt-hour, the double increase in volume and price boosted the company’s 18-year revenue growth9.


Multi-factors offset the impact of high coal prices, and financial expenses and profits from asset impairment decreased to 2018. Supply and demand in the domestic coal industry continued to be tight, coal prices remained high, and the average national coal price index rose by 531 yuan / ton.15

1 yuan / ton, the company’s standard price of coal into the 合肥夜网 furnace reached 609.

5 yuan / ton, up from 24 previously.

2 yuan / ton.

However, because the company’s electricity price has increased significantly, wind power with high gross profit margin, and hydropower have increased. Therefore, under the situation of a slight increase in coal prices, the company’s gross profit margin has increased from 17 years to 17 years.

0% increased to 18.

At the same time, gross profit was 101 from 17 years.

9 million to 121.

900 million.

However, the company’s new production projects in 18 years, and interest expense led to the company’s financial costs increased by 10.6 million, the impairment losses on consolidated assets increase by 21 each year.

800 million US dollars, the company’s net profit attributable to its mother decreased by 38 every year.

4% to 13.

700 million.

The joint venture company officially landed and its 苏州桑拿网 cost control ability was enhanced. In January 19th, Beijing Guodian Electric Power Co., Ltd., a joint venture between the company and China Shenhua, officially completed industrial and commercial registration and asset delivery, and Guodian Power’s installed capacity reached 8585.

99 million kilowatts.

At the same time, the Group clearly regards Guodian Power as the Group’s conventional energy (including hydropower and thermal power) power generation business integration platform and promises to inject the Group’s conventional energy power generation business (excluding other listed company assets) into Guodian Power within five years after the merger is completed.

We believe that in the future, the company can strengthen cooperation with National Energy Group on the coal sector, so as to control coal costs more effectively.

In 19, the coal price hub is forecast to move downwards, maintaining the company’s “overweight” rating from January to February 2019. Due to the high base in the same period last year, the growth rate of thermal power generation has fallen to 1.

7%, a growth rate of 8 lower than the same period last year.

1 unit, leading to a significant increase in the downstream demand growth rate of coal, the average national coal price index from January to March changed by 507.

6 yuan / ton, down 56 previously.

8 yuan / ton.

Although the mine disasters in Inner Mongolia and Shaanxi caused a certain impact on domestic coal supply in the early stages, we believe that the gradual release of domestic effective coal production capacity and the increase in downstream demand will lead the coal price center to move closer to the green zone in 2019.

Without considering the impact of the joint venture, we expect the company’s revenue levels to reach 728 in 2019-2021.

5.7 billion, 765.

96 ppm, 780.

08 million yuan, the net profit attributable to the owner of the parent company is 35.

8.7 billion, 45.

6.7 billion, 50.

30 trillion, the corresponding EPS is 0.

18 yuan, 0.

23 yuan, 0.

26 yuan, maintaining the company’s “overweight” rating.