Fukai Summary: Kingsoft lost more than 300 million yuan in the first half of the year and nearly 600 million yuan in the third quarter.
The author | Mu'en
In the context of the sharp rise in coal prices, thermal power companies are naturally having a hard time, and the performance of Kingsoft's three quarterly reports is the worst performance in 20 years.
<h1 class="pgc-h-arrow-right" data-track="4" > net profit plummeted 516 times</h1>
Recently, Kingsoft disclosed that the company's net profit attributable to shareholders of listed companies in the first three quarters was -913 million yuan, a sharp drop of 51583.57% year-on-year, equivalent to a 516-fold decrease in performance over the same period last year. At the same time, the company's net profit in the third quarter was -598 million yuan.
In this regard, the company explained that due to the continuous rise in coal prices and the tight coal supply, the company adjusted the start-up mode in a timely manner, and the power generation decreased year-on-year. At the same time, the tax and fee reduction dividends in the same period last year were cancelled.
According to the data, the main raw material of Jinshan's thermal power generation and heating business is coal, and the company's thermal power units first convert it into electricity through the unit through the high temperature and high pressure heat energy generated by the fuel, and then use the thermal energy for industrial production or residential heating; the company's wind power generation and photovoltaic power generation are converted into power products through primary energy processing such as wind and solar energy and are integrated into the power grid.
In fact, in the first half of this year, affected by the rise in coal prices, the net profit of Kingsoft shares fell sharply.
According to the report, the company completed power generation of 8,623,948,400 kWh in the first half of 2021, a year-on-year decrease of 6.66%; completed 765,355.83 million kWh of online electricity, a year-on-year decrease of 7.5%; and the sale of heat was 13,321,600 GJ, down 2.51% year-on-year.
In the first half of 2021, the operating income was 3,218,747,300 yuan, a year-on-year decrease of 6.13%, and the net profit attributable to the shareholders of the listed company was -315,561,100 yuan, a year-on-year decrease of 405.39%.
In this regard, the company explained that there are two main reasons for the decline in performance, one is the lack of coal. The rigid gap of coal resources in Liaoning Province is 150 million tons, the coal mine in Inner Mongolia is limited in production and price, imported coal is affected by national policies and domestic and international markets, the supply of coal-fired market is seriously insufficient, the pressure of coal supply is unprecedentedly increasing, affected by supply, coal prices continue to rise, the unit price of coal (including tax) in the first half of the year has risen by 70.75% year-on-year, and the continuous rise in coal prices has led to the gradual expansion of the loss of the company's thermal power enterprises and the increase in the amount of losses.
The second is price risk. Heat prices and electricity prices are not synchronized, thermal power enterprises are still costly, and coal power enterprises are in a situation of loss.
Fu Kaijun found that in recent months, coal prices have soared from less than 600 yuan per ton to nearly 2,000 yuan, pushing up the production costs of downstream industries, and thermal power companies have been bitter.
In this regard, the National Development and Reform Commission has issued three consecutive documents, saying that it will intervene in coal prices to ensure that energy supply and stable prices are guaranteed.
Some securities companies said that as many places continue to increase coal supply assurance efforts, and the National Development and Reform Commission promotes the deepening of the market-oriented reform of coal-fired power generation feed-in tariffs, power resources are expected to gradually return to commodity attributes, and power operators will also reshape their value.
<h1 class="pgc-h-arrow-right" data-track="34" > deducting consecutive losses on non-net profit</h1>
According to the statistics of Flush, the net profit of Kingsoft from 2017 to 2020 after deducting non-deductions has been a loss for four consecutive years, which is -904 million yuan, -940 million yuan, -444 million yuan and -46.0328 million yuan, respectively. By the third quarter of 2021, the company's net profit after deducting non-profit was a huge loss of 922 million yuan.
Looking back at the company's annual reports over the years, it can be seen that in 2017, the national coal supply-side reform continued to deepen, and the competition in the power market was fierce. At that time, due to the rise in coal prices, the company's electricity gross profit margin fell by 17.35 percentage points year-on-year, with a gross profit margin of 4.39%; the heat gross profit margin fell by 25.84 percentage points year-on-year, with a gross profit margin of -35.9%.
In 2018, the company still has to face the increasing downward pressure on the economy, the fierce competition in the power market, the continuous high price of fuel, the increasingly strict energy conservation and emission reduction, and the severe situation of banks being cautious in lending.
Fu Kaijun found that the company's electricity gross margin in 2018 fell to 1.08%; although the thermal gross profit margin increased by 11.01 percentage points, the gross profit margin was still -24.89%.
Operating at a loss for two consecutive years, Kingsoft reported a loss of 896 million yuan and 729 million yuan in 2017 and 2018, respectively. The company was also ST for two consecutive years of losses, and did not achieve a turnaround until 2019, but the net profit after deducting non-profit is still negative.
The company said in its annual report that in 2019, the company actively responded to the double decline in the volume and price of the electricity market, the high operation of coal prices, the difficulty of financing and the high cost of financing, the heavy task of project construction, and the face of delisting.
Judging from the annual report, the company's thermal gross profit margin has been negative, of which the thermal gross profit margin in 2019 was -19.1%, and by 2020, the thermal gross margin has increased, but it has not yet turned positive, at -7.56%.
<h1 class="pgc-h-arrow-right" data-track="35" > 2500 shareholders ventured into the market</h1>
Since June 25, 2015, the company's stock price reached a high point of 14.21 yuan / share (forward reinstatement), the company's stock price began to fall sharply, and 7 drops suppressed the stock price to 5 yuan.
Since then, in the case of continuous losses in the company's main business, the company's stock price has continued to decline, and by February 1, 2019, it has dropped to a low of 1.64 yuan / share. As of October 29, 2021, the share price of Kingsoft shares closed at 2.43 yuan per share.
In the first half of this year, the company's shareholders were 66,800, but at the end of the third quarter, it was 68,300. For the main business of Jinshan shares, there are still investors who are optimistic, "Liaoning has raised the purchase price by 20%, and I heard that the heating fee has also been raised, and the state has suspended the collection of taxes on power companies, and it is estimated that there should be a certain reduction and reduction policy in the follow-up." ”
In addition, there are investors who have expectations for the company's wind + photovoltaic projects. However, the statistics of Flush show that in the first half of 2021, the revenue of the company's wind power division was only 219 million yuan, accounting for 6.81% of the total revenue, while photovoltaics have not yet been displayed.
Some market participants have analyzed that the main business of Kingsoft shares is still thermal power, if you want to improve the company's performance, the most important thing to see is whether the price of electricity will rise, and the company's wind power project will play a small role in the short term, unless the company expands its scale in the future and the proportion of revenue increases.
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