标题：Pinggao ElectricAccelerating UHV product delivery; exploring charging pile market
发布日期：2016-04-14 8:32:44
内容： Earnings beat expectation 1Q16 operating revenue +32.8% YoY to Rmb868mn; net profit attributable to shareholders +549.9% YoY toRmb136mn. The upside surprise is because: 1) revenue recognition of UHV products rose sharply YoY; 2) UHVproducts enjoy much higher margin, driving up blended gross margin by 13.5ppt; 3) expense ratio -2.86ppt (sales/G&Aexpense ratio -2.89/-1.26ppt) as expense control strengthened and some expense did not reach settlement period. Trends to watch Peak of UHV construction and operation to drive growth. In 2015, Pinggao signed Rmb4.69bn UHV order andreinforced No.1 position with market share reaching 41.6%. In 1Q16, it won Rmb624mn order for GIS products, takingtotal backlog to >Rmb4bn. According to State Grid’s plan, three AC and one DC UHV lines may start operation in 2016and it would also promote the approval and construction of five AC and eight DC UHV lines, driving a peak for UHVconstruction and operation and a peak of order delivery for Pinggao. Delivery of GIS products may rise >50% in 2016. Actively exploring the charging pile market to develop new engines. It announced that Tianjin Pinggao hasbecome capable of producing, debugging and testing smart DC chargers and AC charging piles, and plans to constructcapacity of 6,000~8,000 DC chargers and 20,000 AC charging piles. After winning bid for 5.82MW DC chargers inBeijing and Xinjiang, Pinggao is qualified for State Grid’s tender. We expect State Grid to invest >Rmb5bn in chargingpiles in 2016 (up >300% YoY). As a listed platform under State Grid, Pinggao is highly likely to win bids. Tianjin Pinggao’s distribution network capacity - Pinggao Group spent Rmb2.5bn in 2012 constructing - to startproduction. According to the NEA, investment in distribution network during the 13th FYP may reach Rmb1.7trn and anew round of rural network upgrades has started, positive to Pinggao’s distribution network business. We expect thisbusiness’ revenue to rise ~200% to >Rmb500mn in 2016 and to reach Rmb2~3bn in the coming years. Faster asset injections to drive transformation into an integrated solution provider. The injections ofShanghai Tianling and Pinggao Tongyong would help enhance Pinggao’s mid/low-voltage businesses. Additionalinvestment in Pinggao Tianjin would improve the Pinggao’s self-sufficiency in core spare parts. After the acquisitionsand additional investment, the company would form a complete supply chain covering mid/low-voltage, high-voltage,super high-voltage and ultra-high-voltage switchgear products. Earnings forecast Maintain 2016/17e revenue at Rmb7.27bn/8.4bn and net profit at Rmb1.18bn/1.4bn, implying EPS of Rmb1.04/1.23.Maintain TP at Rmb20.80 (20x 2016e P/E). It is trading at 16x/14x 2016/17e P/E, which is low in its history.Maintain BUY. Risks: sharp fluctuations in raw material prices; setbacks in overseas market exploration.
发布日期：2016-04-14 8:32:44
内容： Earnings beat expectation 1Q16 operating revenue +32.8% YoY to Rmb868mn; net profit attributable to shareholders +549.9% YoY toRmb136mn. The upside surprise is because: 1) revenue recognition of UHV products rose sharply YoY; 2) UHVproducts enjoy much higher margin, driving up blended gross margin by 13.5ppt; 3) expense ratio -2.86ppt (sales/G&Aexpense ratio -2.89/-1.26ppt) as expense control strengthened and some expense did not reach settlement period. Trends to watch Peak of UHV construction and operation to drive growth. In 2015, Pinggao signed Rmb4.69bn UHV order andreinforced No.1 position with market share reaching 41.6%. In 1Q16, it won Rmb624mn order for GIS products, takingtotal backlog to >Rmb4bn. According to State Grid’s plan, three AC and one DC UHV lines may start operation in 2016and it would also promote the approval and construction of five AC and eight DC UHV lines, driving a peak for UHVconstruction and operation and a peak of order delivery for Pinggao. Delivery of GIS products may rise >50% in 2016. Actively exploring the charging pile market to develop new engines. It announced that Tianjin Pinggao hasbecome capable of producing, debugging and testing smart DC chargers and AC charging piles, and plans to constructcapacity of 6,000~8,000 DC chargers and 20,000 AC charging piles. After winning bid for 5.82MW DC chargers inBeijing and Xinjiang, Pinggao is qualified for State Grid’s tender. We expect State Grid to invest >Rmb5bn in chargingpiles in 2016 (up >300% YoY). As a listed platform under State Grid, Pinggao is highly likely to win bids. Tianjin Pinggao’s distribution network capacity - Pinggao Group spent Rmb2.5bn in 2012 constructing - to startproduction. According to the NEA, investment in distribution network during the 13th FYP may reach Rmb1.7trn and anew round of rural network upgrades has started, positive to Pinggao’s distribution network business. We expect thisbusiness’ revenue to rise ~200% to >Rmb500mn in 2016 and to reach Rmb2~3bn in the coming years. Faster asset injections to drive transformation into an integrated solution provider. The injections ofShanghai Tianling and Pinggao Tongyong would help enhance Pinggao’s mid/low-voltage businesses. Additionalinvestment in Pinggao Tianjin would improve the Pinggao’s self-sufficiency in core spare parts. After the acquisitionsand additional investment, the company would form a complete supply chain covering mid/low-voltage, high-voltage,super high-voltage and ultra-high-voltage switchgear products. Earnings forecast Maintain 2016/17e revenue at Rmb7.27bn/8.4bn and net profit at Rmb1.18bn/1.4bn, implying EPS of Rmb1.04/1.23.Maintain TP at Rmb20.80 (20x 2016e P/E). It is trading at 16x/14x 2016/17e P/E, which is low in its history.Maintain BUY. Risks: sharp fluctuations in raw material prices; setbacks in overseas market exploration.
