Yangtze Power (600900): Completion of power generation plans in 2019

Yangtze Power (600900): Completion of power generation plans in 2019
The company’s recent situation Yangtze Power released the 2019 power data announcement: the total power generation is 210.4 billion kWh (-2 per year.3%), of which the Three Gorges, Gezhouba, Xiluodu, and Xiangjiaba achieved 969, 191, 608, and 33.7 billion kWh, respectively, 都市夜网 to -4.7%, +4.2%, -2.7% and +1.9%. Comments on the preliminary power generation to complete the company’s plan, the power in the fourth quarter fell slightly.In the case of weak water in the calendar year 2019 (Xiluodu, the Three Gorges, respectively, are withering 19 compared with the same period.8% / 5.6%), the company’s power generation in 2019 still achieved 210.4 billion kWh (multiple slight reductions of 2.3%), completed the annual power generation plan of 210 billion kWh, reflecting the company ‘s hydrological forecasting and joint dispatching capabilities, which is basically in line with our expectations. In the fourth quarter, the company’s total power generation fell slightly twice.2%, of which the Three Gorges, Xiluodu, and Xiangjiaba were reduced by 2.1%, 2.2%, 3.7% to 221, 156, 8.1 billion degrees, while Gezhouba increased to 0.3% to 4.4 billion degrees. In 2019, the power purchase and sale contracts were initially completed, and the electricity price model was basically stable.Recently, the company has completed the annual contract on the amount of power generation, and the contracted power amounted to 200 billion kWh, accounting for 95% of the company’s total power generation.From the perspective of the substations, the contract charges of the Three Gorges, Gezhouba and Xiluodu to Jiajiaba were respectively 905, 177, 590, and 32.8 billion degrees, which are basically the same as last year, accounting for 93% and 93% of the four generators’ power generation in 2019, 97%, 97%. In terms of electricity prices, the contracted electricity price has remained stable. The Three Gorges and Gezhouba are still implemented in accordance with the original state policy.5?11.4 yuan / MWh.Excluding the impact of the reduction in growth rate from 16% to 13%, the captain of the right bank of Xiluodu will reduce the electricity price without tax by 0.9 yuan / MWh (accounting for the original tax-exclusive electricity price of 0.3%), and Xiluodu left bank units and Xiangjiaba downgraded by 3.2 yuan / MWh (accounting for 1.2%), the impact is significant and limited.In the purchase and sale of electricity from Xixiang, the price of electricity involved in market-oriented transactions has not yet been determined, and will be determined according to the market-oriented transactions of the province receiving electricity. Estimates suggest that we keep the company’s profit forecast for 2019/20 unchanged, while 武汉夜生活网 dating the profit forecast for 2021.07 yuan (not considering the injection effect of Wubai unit).The company currently corresponds to a P / B ratio of 2 in 2020/21.6/2.4 times, dividend yield 3.5% / 4.0%.We maintain our Outperform rating on the company with a target price of 19.8 yuan, which is 6 compared with current expectations.Upside of 6%, corresponding to 2020/21 P / E ratio of 2.8/2.6 times, dividend yield 3.3% / 3.8%. Risks came in less than expected, and electricity prices were lowered.