Home emjfyfzntYangtze Power (600900) 2018 Annual Report and 2019 First Quarterly Report Review: Focus on the main hydropower industry’s transfer of electricity distribution business and capital market expansion and development space

Yangtze Power (600900) 2018 Annual Report and 2019 First Quarterly Report Review: Focus on the main hydropower industry’s transfer of electricity distribution business and capital market expansion and development space

Yangtze Power (600900) 2018 Annual Report and 2019 First Quarterly Report Review: Focus on the main hydropower industry’s transfer of electricity distribution business and capital market expansion and development space
Event: On April 29, the company announced the 2018 annual report and the 2019 first quarter report.The operating income in 2018 was 512.1.4 billion US dollars, an annual increase of 2.13%; net profit attributable to mother 226.11 ppm, an increase of ten years.57%; deduct non-net profit 220.55 ppm, a ten-year increase of -0.8%.The company’s dividend plan is 6 for every 10 shares.8 yuan (including tax), the dividend rate is 66.16%, the latest closing price corresponds to a dividend rate of 4%.In the first quarter of 2019, operating income was 86.08 million yuan, an increase of 5 in ten years.62%; net profit attributable to mother 29.1.6 billion, an annual increase of 2.96%; deduct non-net profit 24.1.3 billion, a growth of -10 in ten years.82%. Income side: The steady increase in revenue is driven by the influx of incoming water, and the joint dispatch increases the annual power generation.6%.The company’s operating income in 2018 was 512.14 ppm, a ten-year increase2.13%; Operating income in Q1 of 2019 was 86.08 million 厦门夜网 yuan, an increase of 5 in ten years.62%.The increase in revenue was mainly due to the increase in power generation: total power generation in 2018 was 2154.8.2 billion kWh, an increase of 2 each year.18%; total power generation in the first quarter was approximately 361.7.8 billion kWh, an increase of 4 per year.78%; In 2018, the cascade power stations will save water and increase power generation to 99.300 million kilowatt-hours, accounting for about 4.6%. Expenses: Declining debt ratios have driven down financial expenses and the debt structure has continued to optimize.In 2018, the company’s total debt was 152.8 billion yuan, a decrease of 110 from 2017.6.7 billion, debt rate 51.71% (3 per year reduction.03pct).Due to the decline in debt ratio, the company’s financial expenses for 2018 were 58.54 ppm, a reduction of 0 杭州夜网论坛 per year.4.3 billion.The company made full use of its credit advantages to optimize its debt structure. In 2018, the company completed the issuance of 8 bonds with a total of 24 billion U.S. dollars, and added comprehensive bond costs3.97%, 50bp lower than in 2017. Other income: The gradual return of preferential policies expires, and investment income is expanded to ensure stable performance.We estimate that due to the expected expiration of the preferential policies for repatriation and return, it is expected to affect 2019 pre-tax profit of about $ 700 million.At the same time, the company realized an investment income of 2.7 billion yuan in 2018 (including disposal of equity participation to obtain investment income of 7.).6.3 billion), accounting for 10% of total profits. The investment scale and income have reached record highs, effectively ensuring stable performance. Budget: The tax payment will begin at the end of 17th. The expiration of Chuanyun’s subsidy preferential policy will affect future performance.Beginning to pay Nazi taxes at the end of 2017, due to the collection of territorial taxes, company taxes and surcharges in 201812.89 ‰, an increase of 22 per year.06%.Chuanyun’s preferential income tax policy is about to expire. According to estimates, the company’s yield ranking for 2019-2020 will increase by 2 in 2018.99pct, the company’s revenue rate in 2021 will increase by 3 in 2020.98 points. Investment suggestion: “Buy” rating.The company focuses on the main hydropower business and expands the development space across the power distribution business and the capital market.The company’s hydropower assets use the “group investment and construction, built-in injection” model. The isolation of financing and debt has brought stable returns and abundant free cash flow to listed companies, ensuring the sustainability of high cash dividends.We estimate the company’s net profit attributable to its parent to be 216 in 2019-2021.60, 225.61, 226.1.6 billion, the previous growth rate was -4.21%, 4.16%, 0.24%, corresponding to the PE estimate of 17 on April 30.1, 16.5, 16.4 times, give “Buy” rating.Risk reminder: The price of electricity on-grid is lowered, and the incoming water continues to be dry.