Chint Electric (601877): Suppliers participate in large-scale shareholding plans to achieve win-win cooperation in the industrial chain

Chint Electric (601877): Suppliers participate in large-scale shareholding plans to achieve win-win cooperation in the industrial chain

Key 杭州桑拿 investment events: The company issued an announcement that the company’s actual controller Nan Cunhui and the controlling shareholder Chint Group respectively transferred 11 million shares and 17.11 million listed company shares to the company’s supplier shareholding plan at a transfer price of 21.

14 yuan / share, 10% off the closing price, the total transfer amount is 5.

9.4 billion.

The initial two transfers were mainly to employees, distributors and some suppliers, and the recent shareholding plan was transferred to PV suppliers to share the company’s value and growth with the upstream and downstream of the industry chain.

This is the third shareholding plan carried out by the company. The first transfer was completed in January-February 2018, with a total transfer of 32.23 million shares at an average transfer price of 22.

87 yuan, the amount of 7.

3.7 billion; the second transfer was completed in December 2018, with a total transfer of 33.9 million shares at an average transfer price of 20.

44 yuan, the amount 6.

9.3 billion.

The first transfer was mainly a shareholding plan for employees and distributors, and the second was mainly a shareholding plan for distributors and a small number of suppliers.

The scale of the transfer is similar, mainly to the PV supplier at a transfer price of 21.

14 yuan, all are 10% off major transaction transfers, reflecting the major shareholders Chint Group and Nan Dong share the value and growth of Chint with the upstream and downstream of the industry chain.

The launch of the stock plan is conducive to accelerating the integration of photovoltaic suppliers’ innovative technologies and company components, as well as enhancing the stability of suppliers and accelerating the development of new projects.

The participants in this shareholding plan are mainly photovoltaic suppliers, including auxiliary materials such as adhesive films, component OEM companies and power plant developers. Through the shareholding plan, the cooperation in the photovoltaic industry chain will be enhanced to achieve win-win cooperation.

In terms of products, innovative technologies and products such as adhesive films can be quickly applied to Chint modules; strengthened cooperation with module OEM suppliers can further ensure stable supply during the rescue period; power station developers can help develop new photovoltaic projects.

At the same time, the launch of the shareholding plan at the current time reflects the company’s confidence in the company’s continued growth in performance.

The growth optimization of low-voltage electrical appliances reflects very strong integration, and the steady development of photovoltaic business can continue to grow.

Under this year’s macroeconomic budget, the company’s low-voltage electrical business grew by only about 16% in the first quarter. The increase was from the volume of high-end new products Kunlun.Will maintain a growth of about 15%, reflecting the growth potential of low-voltage appliances.

In photovoltaics, the peak season of Q3 is expected to start after the initial implementation of this year’s policy. The best yield for household projects this year is expected to be more than 600 MW, and the company’s power generation operation scale at the end of 19Q1.

4GW, expected to increase 600MW in 19 years?
At 1GW, the overseas EPC business has steadily expanded. We expect the operating profit 杭州桑拿洗浴会所 of the photovoltaic sector to increase by about 20% in 19 years. The overall steady growth of the photovoltaic business is expected.

Earnings forecast and investment rating: It is expected that the company’s net profit attributable to its mother in 2019-21 will be 39.

9.5 billion / 46.

16 billion / 53.

8.6 billion, with EPS of 1.

86/2.

15/2.

50 yuan, an increase of 11 each year.

2% / 15.

5% / 16.

7%, corresponding to the current price of PE is 13/11/9 times, has been biased towards the bottom in historical expectations.

Give a target price of 33.

48 yuan, corresponding to 19 times PE in 19 years, maintain “Buy” rating.

Risk warning: policy changes, macroeconomic downturn, increased competition, etc.