Recently, under the blessing of the policy, the energy storage concept stocks have risen sharply, of which Yongfu shares have soared by 33.63% in two days, rebounding from the low of nearly two months by more than 70%, and the rise is amazing.
<b>Yongfu shares, which are rising with heat and wind, how is it? </b>
<h3><b>01</b></h3>
<h3><b>King Chengye Ning, defeatEd King Ye Ning</b></h3>
According to the data, <b>Yongfu Co., Ltd. is a leading private power survey and design enterprise</b>, and the specific business can be divided into five major sectors: power planning consulting/survey and design, EPC general contracting, smart energy (digital power, power communication, power information technology services), intelligent operation and maintenance, and power energy investment. Among them, the revenue of the two major sectors of power engineering survey and design (including planning consulting) and EPC engineering general contracting accounted for a relatively high proportion, 28.5% and 63.94% respectively.
<b>Yongfu shares have obvious qualification advantages in the power sector. </b>The company has the advantages of power energy system integration technology, has a series of qualifications for the whole industrial chain of electric power, <b>and is currently the only listed power survey and design enterprise in China that can undertake large-scale power generation, transmission and transformation business. </b>The company's UHV and all-type cable survey and design comprehensive capabilities rank in the first echelon in China, and its technical strength can be compared to the "national team", and <b>it is also the only private enterprise in China with UHV survey and design performance. </b>
<b>In terms of energy storage, Yongfu shares have a wealth of corresponding experience accumulation. </b>The company is proficient in the whole process of project development, planning design and implementation of energy storage power stations, with more than 700M of actual engineering cases of energy storage project development and implementation, and now has the planning and design and development capabilities of large energy storage power stations of more than 100MW, and the system-level application and project development capabilities of large-scale supporting new energy power generation energy storage power stations.
<b>The characteristics of Yongfu shares, just in line with the Ningde era of energy storage layout, but also became the "king's choice"</b>, at the end of 2020, Yongfu shares through the transfer of equity highly bound Toning times, in February 2021 the company and Ningde times joint venture set up era Yongfu, focusing on new energy and energy storage, through the integration of the two technology and resource advantages, further deepen the industrial layout in the energy storage track, with the intention of seizing the leading position in energy storage.
<b>Hitching a ride in the Ningde era, coupled with popular concepts involving energy storage, photovoltaics and so on, the stock price of Yongfu shares soared, five times in just eight months! </b>
<b>But in August this year, CATL announced that it would reduce its stake in Yongfu by 3%. </b>Although Yongfu shares said that the company's business cooperation with cataline times is carried out normally. However, the bearish meaning brought by the word "reduction" still triggered panic among investors, and the company's stock price fell to the altar, falling by more than 50% in the four days after the announcement.
<b>Nowadays, the announcement of the reduction date has passed the halfway point, but the Ningde era has not yet begun to sell, the cooperation between the two does not seem to be affected</b>, September Yongfu shares announcement shows that Yongfu shares intend to invest 20 million yuan in Shanghai Kuaibu New Energy Technology Co., Ltd., the shareholding ratio of 6.15%. Shanghai Kuaibu was established by Ningde Times (49% shareholding) and Fujian Baicheng New Energy (51% shareholding), with electric vehicle storage and charging inspection + big data operation as the core, through the establishment of integrated photovoltaic power generation, energy storage peak shaving electric vehicle charging station, the goal is to create a new "optical storage charging and inspection integration" operation service platform, and try to explore the development of battery monitoring, battery residual value assessment business. The capital increase integrates the advantages of both sides in talent, technology, operation and resources, and deepens cooperation in the field of optical storage and inspection, which is expected to further enhance the layout and core competitiveness of Yongfu in the field of energy storage.
Combined with the previous Ningde era said that the reason for the reduction was "capital demand", and the recent fixed increase plan of 58.2 billion yuan of <b>the Ningde era, Ning Wang's credibility of the company's bearish meaning is high, and Yongfu shares may have been killed by mistake this round of decline. </b>
<h3><b>02</b></h3>
<h3><b>Performance was mediocre</b></h3>
Iron also needs to be hard, putting aside the influence of the Ningde era, the performance of Yongfu shares is indeed average. In terms of operating income, in 2019, the revenue of Yongfu shares was 1.44 billion yuan, which was the first time in the past 5 years to break through the 1 billion mark, and then the revenue in 2020 fell to 980 million yuan due to the impact of the epidemic, and the company achieved growth of 2.84% and 24.81% in the first and second quarters of this year, respectively, but it has not yet recovered to the pre-epidemic level.
(Yongfu shares operating income performance, source: choice)
<b>There is also a large room for growth in net profit</b>, and the financial report shows that the net profit of Yongfu shares in the second quarter of this year fell by nearly 80% year-on-year. According to the company's explanation, the reason for the decline in net profit in the first half of this year compared with the same period was that the share payment generated by the deduction of equity incentives was 25.7672 million yuan, and the amortization of the equity incentive was included in the management expenses. If the impact of share payment is not considered, the net profit attributable to the shareholders of the listed company in the first half of this year was 38.57 million yuan, an increase of 28.06% over the same period of the previous year, which was basically in sync with the revenue growth. However, in an elongated point of view, the company's net profit has shown a downward trend since 2018, which is negative year-on-year, and the decline rate is accelerating, -4.46% year-on-year in 2018 and -30.38% in 2020.
(Net profit performance of Yongfu shares, source: choice)
<b>In addition, the company's net profit margin and gross profit margin are at the lowest level in the industry. </b>Mainly because the gross profit margin of EPC engineering general contracting business is at a low level, at present, the company's engineering business is still growing rapidly, the proportion is gradually expanding, if it is impossible to improve the gross profit margin of the project and reduce exchange losses, the company's net profit margin may further decline in the future.
(Compared with the comprehensive gross profit margin and net profit margin of the same industry, source: Industrial Securities)
<h3><b>03</b></h3>
<h3>epilogue</h3>
Recently, the energy storage track has entered the policy "honeymoon period", coupled with the Ningde era all the way up, as the "Ning Wang" family, Yongfu shares are not outstanding performance, compared with the bundle of Ningde era to engage in energy storage, it seems to be worthless, the market has high expectations for the future of Yongfu shares in the field of energy storage.
Some institutions predict that by 2030, China's energy storage investment market will reach about 1.3 trillion, although there is a good future, <b>but at present, the company's energy storage business is still in its infancy, and the cooperation journey of the Ningde era still has a long way to go. </b>