Shao Neng (000601): Persistent High Growth Performance Dividend Ratio Exceeds Expectations

Shao Neng (000601): Persistent High Growth Performance Dividend Ratio Exceeds Expectations
Investment Highlights Event: The company released three quarterly reports and achieved revenue of 32 in the first three quarters.68ppm, an increase of 29 per year.99%; net profit attributable to mothers4.78 ppm, an increase of 77 in ten years.98%; net profit after deduction is 4.470,000 yuan, an annual increase of 142.78%. Third-quarter results continued to grow at a high rate, with gross and net profit margins increasing: According to the company’s announcement, revenue for the first three quarters was 32.68 ppm, an increase of 29 in ten years.99%; net profit attributable to mothers4.7.8 billion, an annual increase of 77.98%; net profit after deduction is 4.470,000 yuan, an increase of 142 in ten years.78%.In the third quarter, it achieved revenue of 10 in a single quarter.740,000 yuan, an increase of 26 in ten years.10%; net profit attributable to mother 1.24 ppm, an increase of 92 in ten years.23%; net profit after deduction is 1.110,000 yuan, an annual increase of 102.95%.In terms of profitability, the gross profit margin in the third quarter was 25.90%, increase by 1 every year.75 averages; net margin is 11.93%, an increase of 3 per year.93 grades, while expanding the scale of revenue, significantly improved profitability. Significantly increase the proportion of cash dividends, and the distribution rate is expected to exceed 5%: From 2016 to 2018, the upper limit of the proportion of cash dividends of shareholders in the parent company’s net profit for the current year specified by the company’s original shareholder income plan is 35%, and the actual dividend ratioFor 49.05%, 53.33%, 53.51%, the average annual dividend ratio is 51.96%, which is higher than the company’s original shareholders’ income plan stipulated a higher proportion of cash dividends.In August 2019, the company released a new shareholder return plan (2019-2021), promising that the company’s cash dividend amount in the year of 2019-2021 accounted for about 60% of the net profit 无锡桑拿网 attributable to the parent company, and according to the company’s three quarterly reportAccording to the disclosure, the proportion of cash dividends in the company’s 2019 dividend plan to the net profit attributable to the parent company is proposed to be 65% to 70%, which is equivalent to the current expected dividend rate of more than 5%, and the value attribute is highlighted. The centralized construction of biomass power generation and environmental protection paper tableware projects will continue to help the company’s growth: The company also announced: 1) Investment in the construction of the third and fourth phases of the Xinfeng Biomass Power Generation Expansion Project with a construction scale of 60,000 kilowattsThe total investment yield of the project is 14.24%; 2) Invested in the construction of Wengyuan Biomass Power Generation Phase III and Phase IV projects, with a construction scale of 60,000 kilowatts, and the total investment income of the project is expected to be 9.18%; 3) Invested in the construction of the first phase project of ecological plant fiber paper tableware in Nanxiong Second Park, with a designed annual production capacity of 3.885 Initially, it is expected to achieve operating income after commissioning6.55 ppm / year, total profit is 0.8.6 billion yuan / year. Earnings forecast and investment rating: The company’s EPS for 19-21 is expected to be 0.55, 0.68, 0.76 yuan, corresponding PE is 12, 10, and 9 times respectively. The company also has: 1) Dividends for value stocks: The company promises to increase the cash dividend ratio from 35% to 60% in the year 2019-2021.More than 5%, it is the first among all companies in the hydropower industry; 2) Valuation of cyclical stocks: corresponding to 12 times PE in 2019; 3) Growth rates of growth stocks: 97% in 2019 and 2020 respectively.2%, 23.1%, therefore, we maintain the company’s “Buy” rating. Risk reminder: Macroeconomic downturn affects power demand, and there is a risk of downward price adjustments for hydropower and biomass compensation electricity prices, etc.