event:
The board of directors of the company resolved to adopt the “Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Implement Subsequent Transaction on Material Asset Restructuringâ€, and asked the company's general meeting of shareholders for approval to continue to authorize the board of directors to fully handle underground power station acquisition until the acquisition is completed.
comment:
1. The acquisition of underground power stations is part of the overall listing of Yangtze Power. When Yangtze Power listed on the market in 2009, it once made it clear that China Three Gorges Corporation will sell underground power stations to Yangtze Power, the Yangtze River, before the first batch of power generating units will be put into production. Power promises to buy an underground power station.
The installed capacity of the underground power station is 4.2 million kilowatts (a total of six 600,000 kilowatts of hydroelectric generating units are installed). In addition to underground power stations that can fully utilize the hydropower resources of the Yangtze River flood season, they can also improve the power quality of the Three Gorges Power Station. Improve peaking capacity. In view of the fact that the underground power station is not yet completed, the China Three Gorges Corporation is still responsible for construction management.
2. The underground power station has a low cost, and the company has disclosed that the total investment of the underground power station is 9.1 billion yuan, equivalent to the unit cost of 2,167 yuan/kW, far lower than the main power plant unit of the Three Gorges Power Station. Unit cost.
The underground power station is mainly used to generate water through the flood season. Only when the flow rate during the flood season is higher than the required flow of the main power plant unit, the power generation will be carried out. Therefore, it is expected that the annual use hours will be lower, and our analysis may be around 1000 hours.
3. Acquisition bargaining is not high, slightly thickening earnings per share According to the company’s announcement, the transaction price range of underground power stations is from 11.5 billion yuan to 13 billion yuan, which is lower than the total investment.
We judge that the company will acquire underground power stations through cash plus liabilities, and it will not dilute its share capital. As the underground power station belongs to the peaking unit, the electricity price is expected to be higher than the average on-grid tariff of the Three Gorges Power Station. We initially estimated that by acquiring underground power stations, the company's earnings per share can increase by 0.02-0.03 yuan.
4. Undervalued resource stocks maintain "strongly recommended" rating Yangtze Power has the best hydropower resources in the country and has strong profitability. In accordance with the company's overall listing commitment, the company will also purchase the downstream Cascade Power Station at the Jinsha River, with a clear growth. .
We maintain our investment rating of "strongly recommended" by the company, and forecast that the company's earnings per share for 2011 to 2013 will be 0.53, 0.57, and 0.60 yuan respectively, which corresponds to only 13 times the PE in 2011.
The board of directors of the company resolved to adopt the “Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Implement Subsequent Transaction on Material Asset Restructuringâ€, and asked the company's general meeting of shareholders for approval to continue to authorize the board of directors to fully handle underground power station acquisition until the acquisition is completed.
comment:
1. The acquisition of underground power stations is part of the overall listing of Yangtze Power. When Yangtze Power listed on the market in 2009, it once made it clear that China Three Gorges Corporation will sell underground power stations to Yangtze Power, the Yangtze River, before the first batch of power generating units will be put into production. Power promises to buy an underground power station.
The installed capacity of the underground power station is 4.2 million kilowatts (a total of six 600,000 kilowatts of hydroelectric generating units are installed). In addition to underground power stations that can fully utilize the hydropower resources of the Yangtze River flood season, they can also improve the power quality of the Three Gorges Power Station. Improve peaking capacity. In view of the fact that the underground power station is not yet completed, the China Three Gorges Corporation is still responsible for construction management.
2. The underground power station has a low cost, and the company has disclosed that the total investment of the underground power station is 9.1 billion yuan, equivalent to the unit cost of 2,167 yuan/kW, far lower than the main power plant unit of the Three Gorges Power Station. Unit cost.
The underground power station is mainly used to generate water through the flood season. Only when the flow rate during the flood season is higher than the required flow of the main power plant unit, the power generation will be carried out. Therefore, it is expected that the annual use hours will be lower, and our analysis may be around 1000 hours.
3. Acquisition bargaining is not high, slightly thickening earnings per share According to the company’s announcement, the transaction price range of underground power stations is from 11.5 billion yuan to 13 billion yuan, which is lower than the total investment.
We judge that the company will acquire underground power stations through cash plus liabilities, and it will not dilute its share capital. As the underground power station belongs to the peaking unit, the electricity price is expected to be higher than the average on-grid tariff of the Three Gorges Power Station. We initially estimated that by acquiring underground power stations, the company's earnings per share can increase by 0.02-0.03 yuan.
4. Undervalued resource stocks maintain "strongly recommended" rating Yangtze Power has the best hydropower resources in the country and has strong profitability. In accordance with the company's overall listing commitment, the company will also purchase the downstream Cascade Power Station at the Jinsha River, with a clear growth. .
We maintain our investment rating of "strongly recommended" by the company, and forecast that the company's earnings per share for 2011 to 2013 will be 0.53, 0.57, and 0.60 yuan respectively, which corresponds to only 13 times the PE in 2011.
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