GCL Energy Technology (002015): Performance Is Still Under Pressure, Expecting To Accelerate The Implementation Of Power Exchange Business In The Second Half Of The Year

Fuel prices are high, profitability is declining, and the performance of the first half of the year is still under pressure. On the evening of August 11, 2022, the company released the semi annual report of 2022. According to the report, the revenue of 2022h1 company is 5.029 billion yuan, 17.19% year-on-year; The net profit attributable to the parent company was 387 million yuan, which was - 22.30% year on year; The gross profit margin was 17.67% 6, 6.9 PCT on a year-on-year basis; The net interest rate was 7.72% 6, which was -3.76 PCT on a year-on-year basis; Roe 3.88%, 4.45 PCT The overall performance has shrunk to a certain extent, and the quality of profits has declined. In the first half of the year, the price of natural gas and fuel in Ukraine declined continuously due to the price fluctuation of coal and fuel.

In 2022q2 alone, the company's revenue was 2.424 billion yuan, which was - 24.79% year-on-year; The net profit attributable to the parent company was 217 million yuan, 30.71% year on year; The gross profit margin was 16.71% 6, which was -9.57pct on a year-on-year basis and 1.86pct on a month on month basis; Net profit was 8.46% 6, which was - 5.84 PCT year-on-year and + 1.43 PCT month on month. The reasons for the decline of year-on-year profits in a single quarter are as mentioned above, while the profitability on a month on month basis remains basically stable, indicating that the company has taken measures to cope with the rise in fuel prices and its ability to control the cost, waiting for the macro environment to improve.

As of June 30, 2022, the total installed capacity of the company is 3807.24mw

Gas turbine cogeneration is 2437.14mw, coal-fired cogeneration is 332mw, wind power is 862.1mw, biomass power is 60MW and garbage power is 116MW. The installed capacity of wind power is about 30MW higher than that at the end of 2021, and the rest remains stable. At present, the installed proportion of clean energy has reached 91.28%, further increasing.

In the first half of 2022, the company completed the settlement of 7.1082 million tons of steam and 4.891 billion kwh of electricity, respectively - 13.04% and - 35.28% year-on-year. Under the situation of high fuel cost, international inflation and repeated domestic epidemic situation, the company actively optimizes the operation mode, properly controls the production capacity, and ensures the profitability of unit capacity to the greatest extent.

In addition, the company holds Zhejiang Jiande GCL pumped fan energy Co., Ltd., with an installed capacity of 2400mw. The Jiande pumped storage power station project is listed in the key implementation projects of the national medium and long term development plan of pumped fan energy (2021-2035), and is also listed in the 14th five year plan for energy development of Zhejiang Province

Planning, the project is expected to be approved within the year, and the preliminary work of the project is in progress.

With the steady progress of electricity exchange business, it is expected that the implementation of power station will be accelerated in the second half of the year. In 2022, China's electric vehicle charging and swapping infrastructure construction will be comprehensively accelerated. More than 30 provinces and cities across the country will issue incentive policies for electric vehicle charging and swapping to support the rapid development of the industry. Up to now, the company has built 18 passenger car exchange stations, 12 commercial vehicle power stations and 1 commercial vehicle charging station.

The number of replacement stations for passenger cars and commercial vehicles increased by 64% and 160% respectively compared with that from 2022 to the end of the quarter, indicating that the construction of power stations for passenger cars and commercial vehicles is accelerating.

The company will focus on mobile energy business, quickly form market influence and product competitiveness, and provide power for power exchange stations by using large-scale low-cost green power supply, superior regional layout, power sales and demand side management; After security optimization and integration, the retired batteries of mobile energy operation will be used as supporting energy storage peak shaving and frequency modulation infrastructure for clean energy projects. At the same time, we will lay out lithium ore and lithium salt deep processing industries, ensure the stable supply of upstream materials for mobile energy batteries, improve their own control over the industrial chain, and help the mobile energy business to develop steadily and further. According to the latest disclosure of the company, the goal of mobile energy business in 2022 is to build 300 power stations to serve 30000 vehicles. According to the number of replacement stations completed in the first half of the year, it is expected that the landing of the company's replacement stations will accelerate in the second half of the year. More than 600000 new energy vehicles will be built. According to the current industry development rate, the "14th five year plan" may exceed the predetermined target number.

Investment advice

It is estimated that the company's net profit attributable to the parent company in 2023.2024 will be 1.455 billion yuan and 2.739 billion yuan respectively, corresponding to the current PE of 18x / 9x, which is continuously recommended.

Risk tips

Macroeconomic downturn, market demand decline; The price of raw materials fluctuated greatly; Electric vehicle industry policy change risk.