Mingyang Smart (601615): A Announcement on the Pre-bid of Major Projects

Mingyang Smart (601615):南京桑拿网 A Announcement on the Pre-bid of Major Projects

Event: The company issued a pre-bid announcement for major projects.

The company recently participated in the bid for “Huaeng Shantou Lemen (II) Offshore Wind Farm”.

Huaneng International Power Co., Ltd. Guangdong Branch released the “Announcement of Winning Candidates for the Procurement of Wind Turbines and Auxiliary Equipment of Huaneng Shantou Lemen (II) Offshore Wind Farm Project” on June 17, 2019.The total amount of winning bids was approximately RMB 2,066.4 million, accounting for approximately 37 of the company’s audited operating income in 2018.

68%.

  The order for offshore wind turbines was won again, and the competitive strength was strong.

At the extreme, the company has been increasing the research and development and production of high-power offshore wind turbine products, and the offshore wind turbine products cover 3.

0/5.

5/7.

0MW platform, and 8-10MW + product pre-research has started, 5.

The 5MW series is the main sample of the company’s existing offshore wind power.

According to the company’s announcement, as of the end of the first quarter of 2019, the company’s offshore wind power orders were 237.

90,000 kilowatts (2.

379GW) and the total order amount is 157.

620,000 yuan, the average bid price was 6625 yuan / kW.

In April 2019, the company added orders for CGN Shanwei Offshore Wind Power Project1.

4GW, so far the order of offshore wind turbines has reached 3.

78GW, the contract amount reached 243.

4.9 billion yuan.

Coupled with this Huaneng Shantou order, the company’s offshore wind turbine orders in hand have reached 4.

18GW, the contract amount reached 269.

4.9 billion.

  Deeply plowing into new energy fields such as wind power, the original intention remains unchanged.

Since its establishment, Mingyang Intelligent has been deeply involved in the wind power industry and has gradually become a leading domestic manufacturer of wind power equipment.

According to the statistics of the Chinese Wind Energy Association in 2018, the company’s new installed market share in China reached 12.

41%, ranking the top three in the country for four consecutive years; according to Bloomberg New Energy Finance data, the company’s new installed capacity in 2018 ranked seventh globally.

The company’s overall main business includes two major sectors: one is the research and development, production, sales, and intelligent operation and maintenance of large-scale wind turbines and their core components; the other is the development, investment, construction, and intelligent operation management of wind farms and photovoltaic power generation.

  The order capacity has increased rapidly and has great potential.

After years of development, the company has developed and consolidated the main stable customer base of the “five big” and “four small” large-scale old-fashioned power generation groups, and has continuously added large-scale high-quality customers.

According to the company’s announcement, as of the end of the first quarter of 2019: the total capacity of the company’s fan orders on hand reached 7.

81GW, an increase of 10 before the end of 2018.

5%.

Among them, the contract capacity for advance contracts is 4.

76GW, the capacity of the unsigned contract has been 3.

05GW; the total amount of orders in hand reached 345 trillion, an increase of 10 over the end of 2018.

03%.

Among them, the contract value of the signed contracts was 22.4 billion, and the scale of the unsigned contracts has been awarded 12.1 billion.

As of the end of May, the company’s orders on hand totaled about 11GW, and reached a new high.

  Wind farm projects have sufficient reserves.The company’s new energy power station project is constructed using parallel contracting or EPC general contracting. At present, the company’s new energy power station project mainly uses parallel contracting, and the proportion of EPC general contracting projects is small.

As of the end of 2018, the company’s investment in new energy power generation has been connected to the grid to achieve revenue equity installed capacity of more than 77.

850,000 kilowatts (including wind power of 697MW and PV82MW), with an installed capacity of approximately 700,000 kilowatts.

According to the existing plan, the company expects that the installed capacity of grid-connected equity will reach 1GW by the end of 2019.

  Investment suggestion: As a leading company in wind power, the company is leading the industry in wind turbine manufacturing and wind farm operations, especially in high-power wind turbines. It has obvious technological advantages and transforms the development of the wind power industry. The large-scale wind turbine has become a trend that can improve power generation efficiency and promoteThe wind power industry goes online at parity.

At the same time, the company is located in Guangdong and has the geographical advantage of offshore wind power.

At present, the company has 11GW orders for hand blowers, which has excess reserves, which is a reserve force for the company’s performance improvement.

  In addition, the company also has a 700MW wind farm project on hand, which will bring stable electricity fee income to the company after the project is completed.

We believe that offshore wind power will be installed in the next 2-3 years. In the next 10 years, offshore wind power will have a high degree of prosperity, and the main battlefield of China’s wind power will turn to offshore.

It is expected that the company’s net profit for 2019-2021 will be 6.

65, 8.

39 and 9.

700,000 yuan, corresponding to EPS0.

48, 0.

61 and 0.

70 yuan / share, corresponding to PE23, 18 and 16, given a “buy” rating.

  Risk reminders: 1. Policy risks.

2. Relatively concentrated risk of customers.

3. Changes in business structure affect business risks.

4. Financial risks.