Jiangshui Power (600131) Company In-depth Report: State Grid plans to transform its integrated energy service provider company’s plans to inject assets to benefit

Company profile: The only power listed company in Aba Prefecture, Sichuan, intends to carry out major asset replacement.

The company is the only power listed company in Aba Prefecture, Sichuan Province. The power business is currently the company’s only business and is mainly divided into two parts: hydropower generation and outsourced power sales.

In February 2019, the company first issued the “Major Asset Replacement and Issuance of Shares to Purchase Assets and Raise Supporting Funds and Related Party Preplans”. It planned to conduct asset swaps with State Grid Corporation of China and issue shares to the Corporation and three other companies to purchase related assets.Difference and remaining equity.

Assuming the completion of the major asset replacement and the issuance of shares for the purchase of assets, the company’s main business will be transformed from the original traditional power distribution and power generation business to a more growth-oriented new information and communication business.

The essence of the ubiquitous electric power Internet of Things: The transition from the smart grid to the ubiquitous electric power Internet of Things is actually the transition from the construction of the main network to the construction of the distribution network.

Ten years have passed since the State Grid proposed the construction of a “smart grid” in 2009. According to the then plan, a unified “strong smart grid” should be built in 2016-2020 (the third stage).

At present, the main grid side has basically met the strong goals in terms of security, stability, and reliability, and the smart grid construction has basically come to an end.

On the contrary, due to the large-scale replacement of various types of energy by the exchange network, the rapid development of electric vehicles, the gradual transformation of consumer electricity demand, and the gradual transformation of electricity load, etc., there are still many issues that need to be resolved and optimized on the distribution network side, especially the user sideThe problem.

The past ten years have been the main body of the main network construction, supplemented by the distribution network construction, which has led to a lot of room for growth on the current distribution network side.

Therefore, the transition from the smart grid to the ubiquitous electric power Internet of Things is actually the transition from the main network construction to the distribution network construction.

The essence of ubiquitous electric power Internet of Things 2: The transition from smart grid to ubiquitous electric power Internet of Things is actually the transition process of State Grid from a single electricity supplier to a comprehensive energy service provider.

The current annual profit of the State Grid basically comes from the electricity sales business. From the perspective of the development of the electricity market, it is assumed that the electricity sales side will be released in the future under the background of the electricity reform.It is absolutely an inherent thing expected, so it is urgent to dig for new performance growth points.

From this period, the transition from the smart grid to the ubiquitous electric power Internet of Things is actually the transition of the State Grid from a single electricity supplier to an integrated energy service provider.

Intended asset injection: Attempt to continue to benefit from the development of the power IoT.

Due to the highly specialized nature of the energy industry, it is difficult for new entrants to form historical performance, and industry barriers are obvious.

At present, China has not established a mature power marketization mechanism, so the market access standards for the power industry must be strict.

From past experience, the construction of key projects of the State Grid is basically completed by its subordinate enterprises (or subordinate enterprises invite tenders and then cooperate with other enterprises), and SIIC is currently the largest information and communication technology and product in the domestic energy industry.And service providers, connected to most of the national telecommunications business.

The main business content of the four companies affiliated to Xinchang Group of the initial public offering company is consistent with the average price of the ubiquitous power IoT construction content.

Among 杭州桑拿 them, the main business content of CLP Puhua and the application layer and platform layer ubiquitous in the construction of electric power IoT; the main business content of CLP Powerstar and the application layer, platform andThe expansion of the network layer fits; the main business content of Jiyuan Software fits with the expansion of the network layer in the ubiquitous construction of electric power IoT; the main business content of CLP Feihua fits with the expansion of the network layer in the ubiquitous construction of electric power IoT.

Investment strategy: “Buy” rating.

We expect to continue to deepen the construction of the electric power Internet of Things through the flooding in the future. The company’s proposed acquisition of assets is expected to benefit from this, and the performance is expected to usher in continuous improvement.

We estimate that the EPS of the company (before the reorganization) in 2019-2021 will be 0.

28, 0.

27, 0.

27 yuan, the current sustainable corresponding PE is 71.

9X / 75.

9X / 74.

8X, give the company a “Buy” rating.

Risk reminder: the risk of asset replacement failure; the ubiquitous power IoT construction is less than expected; the proposed asset injection is not related to the ubiquitous power IoT risk