Ganneng (000899): The biggest obstacle to the resumption of work in the third phase of the Fengcheng project has been removed or has been eliminated

Ganneng (000899): The biggest obstacle to the resumption of work in the third phase of the Fengcheng project has been removed or has been eliminated
Incident: The Fengcheng Phase III project has been moved out of the safe production and dishonesty joint punishment “blacklist” company recently released an announcement: In January 2019, the first assessment team of the State Council ‘s Security Council Office conducted an on-site assessment of the rectification of the “11.24” accidentAccording to the inspection and evaluation of the company and the Fengcheng Phase III power plant, the evaluation team feedback related rectification opinions.On March 18, 2019, the Ministry of Emergency Management of the People’s Republic of China issued the “Announcement of the Ministry of Emergency Management of the People’s Republic of China” (2019 No. 6), and the company’s Fengcheng Phase III power plant has moved out of the joint production disciplinary “blacklist” for safety in breach of trust. Opinion: The biggest obstacle to return to work has been eliminated! The third-phase expansion project of Jiangxi Fengcheng Power Plant is a key power construction project in Jiangxi Province invested by the company to build a 2 × 1000MW ultra-supercritical, secondary intermediate reheat, coal-fired coal-fired generating unit. Affected by the “11.24” extreme safety accident, the project was suspended on November 24, 2016; in October 2017, the project was included in the suspension list by the relevant state departments due to incomplete disposal. Since the “11.24” accident, the company has always regarded Fengdian’s third-phase resumption of work as a top priority.The company thoroughly reflected on the lessons learned from the accident, paid close attention to safety in production, thoroughly investigated and eliminated all kinds of hidden dangers, effectively corrected safety breakthroughs, and pushed forward the special rectification of accidents.The company has repeatedly visited the Provincial Party Committee and Provincial Government, the Central China Energy Regulatory Bureau, the Provincial Emergency Management Department and the competent provincial authorities to report on the progress of the work, and to do a good job in the closed loop of the 11/24 accident rectification.At the same time, the company made every effort to do this preparation work before returning to work, and carefully carried out the project application procedures.At present, 48 supporting documents for the resumption of work have been completed, and only 48 items (the issuance of construction permits for smoke tower construction projects) are being processed. We believe that the third phase of Fengcheng’s project was removed from the “blacklist” of joint disciplinary measures against safe production and dishonesty, which is a positive evaluation given by the safety supervision department to the company’s rectification after initial assessment, which means at least in the main aspects and key issuesThe company has basically approved the company’s rectification work.For the resumption of the project, we believe that with the company’s efforts, the biggest obstacle may have been eliminated. In recent years, the power demand in Jiangxi Province has grown rapidly, with an increase in power consumption of 10 in 18 years.4%; the province’s power supply and demand are tight. In 18 years, the province’s unified thermal power generating units used 5,197 hours, ranking first in the country.From January to February 19, the power consumption in Jiangxi Province increased by 7.21% (above national level 2.75 units), thermal power utilization hours 835 hours (105 hours over the national level).We believe that the current external environment for power consumption in 都市夜网 Jiangxi Province is also conducive to the resumption of the project at an early date to ease the tight supply and demand situation. Profit forecast We expect the company’s operating income for 2018-2020 to be 25.25, 26.85, 27.480,000 yuan, the net profit attributable to the mother is 2 respectively.04, 2.54 and 2.67 trillion, corresponding to 0 EPS.21, 0.26, 0.27 yuan / share.Maintain target price of 7.26 yuan, maintain “Buy” rating. In addition, according to the annual utilization hours of 4,800 hours and the coal price of 840 yuan / ton calculated: if the third phase of the Fengcheng Power Plant is fully put into operation, it will increase the company’s net profit attributable to its parent by about 3.500 million. Risk reminder: Project resumption is less than expected, power demand in Jiangxi Province, coal prices are rising