The hottest Linyang electronics and Huawei plan to

Linyang electronics and Huawei plan to build GW level photovoltaic power station

event: from May 1 to May 8, the company issued several announcements. Lin's advanced technology and equipment ensure the progressiveness of its products and the monopoly position in the market. Yangxin energy agrees to purchase the series inverter of Huawei Technology Co., Ltd. in the photovoltaic power station project, with a purchase volume of no less than 1 in three years. 5GW； Electric energy meter and power consumption information acquisition equipment of Companies in the pre winning country 5. 0.3 billion yuan; It is expected to win about 1 bid for the electric energy meter equipment of Nanjing company. 200million yuan; Sign a strategic cooperation agreement with Neusoft Group Co., Ltd., jointly carry out the research and improvement of photovoltaic power station monitoring, develop photovoltaic power station operation and maintenance platform, and cooperate to develop business opportunities in photovoltaic power station operation and maintenance and energy interconnection operation

main points:

1. Cooperate with Neusoft to develop photovoltaic power station monitoring, operation and maintenance platform, and expand energy operation opportunities, which is expected to become the leader of photovoltaic power station operation and power service

Neusoft is the largest IT solution and service provider in China. Its main business includes industry solutions, product engineering solutions and related software products, platforms and services

Lin Yang Electronics cooperates with Neusoft to research and improve the monitoring of photovoltaic power stations based on Neusoft's photovoltaic power station monitoring system, cooperate in the research and development of photovoltaic power station operation and maintenance platform, and cooperate to develop business opportunities in photovoltaic power station operation and maintenance and energy interconnection operation. This will significantly improve the company's R & D capabilities in the monitoring and operation and maintenance platform of photovoltaic power stations, improve the company's monitoring and operation and maintenance capabilities of photovoltaic power stations, and promote the company to develop business in the field of energy interconnection. It is expected that the company will actively build an energy interconnection and energy operation platform based on electric energy meters and photovoltaic power stations and supported by the power station monitoring and operation and maintenance platform, actively cut into the power sales side, create micro electricity and provide electric energy services. It is expected that the company will become the leader in the operation of photovoltaic power stations and electric energy services in the East

at present, some provinces and cities have outsourced the operation and maintenance business of electric energy meters. As a domestic supplier with leading technology and reliable quality of electric energy meters, with the promotion of power reform, the company is expected to occupy an important share in the operation and maintenance market of electric energy meters, and is expected to extract user data to provide important data support for the company's energy interconnection business

2. The profits of electric energy meters and terminal products are stable, and the focus of electric energy meters in the next few years is in the overseas market

in 2014, the company's revenue and profit growth mainly came from electricity meters, electricity information management systems and terminals. However, as the new energy sector is in the construction investment period during the period, the relevant expenses are invested more, which has a certain impact on the overall profit

in the domestic electricity meter market, the company's revenue will tend to be stable in the next few years. In 2014, the company increased by more than 30% compared with 2013, leading the industry in the national centralized bidding, and some orders will be settled in 2015. Considering the demand for electricity meters in rural reconstruction and the update of electricity meters, it is expected that the bidding volume will remain stable in the next few years, with about 10000 units per year. Recently, the company announced the pre bid of electric energy meter and electric energy terminal 6. 2.3 billion yuan, which will also ensure the stability of the company's electricity meter profit

in the international electricity meter market, the company's revenue will grow rapidly in the next few years. The company acquired 15% shares of "elgama-elektronika Ltd" in Lithuania. Elgama has a variety of European Union qualifications and is expected to produce 600000 smart meters per year; With the support of the company, elgama will rapidly expand its production capacity and seize the markets in Europe and the Middle East. It is expected that the company may continue to acquire some equity in the future to achieve holding. Due to the large output of electric energy meters and perfect management, the cost of the company is significantly lower than that of its foreign counterparts. It is expected that the overseas sales of electric energy meters of the company will increase rapidly in the next few years. As the gross profit of overseas market is slightly higher than that of domestic market, overseas market drives the company's performance to improve steadily

3. The installed capacity of equity in hand is 149mw, which is expected to increase by 500MW every year, significantly increasing profits

the company entered the field of photovoltaic power station construction and operation in 2014, and developed rapidly through acquisition or self construction. It is estimated that by April 1st, 2015, the company's combined installed capacity will be about 180MW, of which the equity installed capacity will be about 149mw. Considering that the current M & a funds are owned by the company, this part of the installed capacity will significantly increase the company's profits in 2015, which is expected to bring 1% in 2015. A profit of 500 million yuan

the company has abundant funds. The asset liability ratio at the end of the first quarter of 2015 was 30. 4%, monetary funds in hand 6. 600million yuan, financial products and other current assets 2. 300million yuan; At the same time, the funds raised by non-public offering shall not exceed 1.8 billion yuan; Considering the electricity meter business, the merged photovoltaic power stations will bring a profit of 100 million yuan in 2015. We expect that by the end of 2015, the company will have about 3billion yuan to develop power stations, which can support the installation of more than 1GW photovoltaic power stations according to the proportion of 30% of its own funds

the company also signed a comprehensive strategic cooperation agreement with Bank of China Nantong Branch, which provides intentional financing credit line support of no more than 5billion yuan in total for the development of related businesses of the company and its subsidiaries within three years. In addition, the company may also raise funds in multiple ways to ensure development funds and a good financial structure

the company has a large number of reserve projects, and the signed agreement rights and interests have an installed capacity of 1. 2gw, even if no new power station development agreement is signed, only the projects currently reserved by the company can meet the development plan for the next two years. Recently, the company also announced that it has signed a contract with Huawei for at least three years. The cooperation agreement on 5GW photovoltaic inverter marks that the construction of photovoltaic power station with resin powder added by the company in real life will be accelerated. We expect that the company will increase the installed capacity by about 500MW every year. It is expected that by the end of 2017, the combined installed capacity of the company will reach 1. 5GW, which is expected to become the performance explosion period of the company's photovoltaic business

4. The state strongly supports the photovoltaic industry, with continuous favorable policies, and the industry is optimistic for a long time

in the past few years, the installed capacity of domestic photovoltaic industry has increased rapidly with the support of policies. From 2011 to 2014, China's newly added photovoltaic installed capacity was 2. 5GW，5。 0GW，12GW，10。 6GW。 On March 17, 2015, the Energy Administration issued a document specifying the installed capacity of 17 in 2015. 8GW, an increase of 68% compared with 2014; Clarify the tracking, assessment, adjustment and adjustment of the completion of photovoltaic power stations in April, July and October, appropriately add scale indicators to the regions with fast construction progress, and reduce the regions that have not implemented the new construction scale to specific projects; Clarify that the pilot provinces and regions of photovoltaic poverty alleviation arrange a special scale for the construction of supporting photovoltaic power stations in the pilot counties of photovoltaic poverty alleviation

at the 2015 two sessions, Premier Li Keqiang made it clear in the government work report that the two have essential differences to vigorously develop photovoltaic power generation. On December 24, 2014, the National Energy Administration issued three consecutive documents to support the photovoltaic industry; At the 2015 energy work conference, the energy administration clearly stated that "vigorously develop solar power generation", while the formulation of the energy work conference at the end of 2013 was "accelerate the development of solar power generation". We believe that the photovoltaic industry has ushered in the best policy period, and the positive will continue to be introduced. 5. Base: with impact strength, the photovoltaic industry will continue to grow at a high rate

5. Led business is experiencing rapid development

in 2014, the LED business of the company developed rapidly, and Lin Yang lighting won the title of top 100 enterprises in China's lighting industry. In 2014, the company's LED engineering business contract amount and key customer business contract amount exceeded 100 million yuan respectively; Operating income realized 1. 500 million yuan, an increase of nearly 300%, accounting for 6% of the main revenue. 92%； At the same time, the company achieved zero breakthrough in its foreign trade business and obtained its first order in the Middle East, Brazil and other markets. In the future, the company's led business will continue to grow at a high speed

6. Profit forecast and rating

the company's 2014 annual report made it clear that the profit distribution in 2014 will be distributed in the years after 2014, and the board of directors proposed a profit distribution in the middle of 2015. At the same time, the company is conducting a non-public offering, which is expected to promote the development of the company after the completion of the offering

the company's electricity meter revenue is expected to grow steadily, with abundant cash, and the photovoltaic business is expected to continue to grow at a high speed. Benefiting from energy interconnection, it is expected to create new growth points and make rapid breakthroughs in led business. The annual EPS of the company is expected to be 1. 57 yuan, 2. 12 yuan, 2. 67 yuan, with corresponding valuations of 25 times, 19 times and 15 times respectively, maintaining the "buy" rating

7. Risk tips: the sales volume of electric energy meters is lower than expected, the growth rate of photovoltaic installation of the company is lower than expected, and the development of energy interconnection of the company is lower than expected. Global glass () Department