Linyang electrical events reviews: overweight PV investments continue to be promising development company

Polaris solar PV net news: private placement, coded photovoltaic power plant investment: the company intends to 24.01 Yuan per unit price of non-public offering of up to 75 million shares, intended to raise funds after deducting the cost of issue not more than 1.762 billion dollars in net investment 200MW 80MW distributed and centralized PV PV projects. Meanwhile, the company proposed to its own capital of 100 million Yuan investment in wholly-owned subsidiaries in Jinan (Shandong linyang new energy limited), to develop photovoltaic business in Shandong province.

Quicken the development of photovoltaic business. 2012 begins distribution of the company field of photovoltaic power plant, power plant EPC is mainly engaged in the business, this year, the company began development of photovoltaic power generation (power station operation) business. Prior to being introduced in Anting, panzhihua, Sichuan, Shanghai, Nantong, Jiangsu, Anhui, Hefei, Hohhot, Inner Mongolia and other photovoltaic power plant was signed agreement on strategic partnership and investment, reserve a large number of project resources. After the network into two raised investment projects this year will achieve electricity revenue exceeded 360 million Yuan and net profits of more than 110 million Yuan.

Select equity, leave enough space for subsequent development. As of June 30, the company in the hands of Monetary Fund close to 1 billion dollars, and asset-liability ratio was only 17%. Investment 280MW photovoltaic projects, companies can either choose the financing way in theory, you can also choose leasing and other financing methods. In the market thought the company “not bad money” background, companies plan ahead, choose equity financing, somewhat “unexpected”. We believe that the company chose to raise equity at this point, mainly due to two considerations: first, the relatively low cost of equity capital and, second, for the following photovoltaic business sufficient financing of space.

Bullish company of logic: (1) PV Application market ascendant: despite near two years domestic PV installed scale growth rapid, but from energy accounted for than view, PV power accounted for than still is small, more national medium-and long-term planning gap is far, especially to distributed for representative of PV Application way only just started, future market space huge; (2) company mark, has growth for leading of potential: a, and main mark: company meters business despite growth has slowed, but as cash flow business, Not only can for other two big strategic business provides stable of cash flow, and and PV and LED business has obviously of collaborative effect; II, and team mark: to land total for representative of management team in PV industry field has rich of industry and management experience, on industry awareness deep, has is strong of business pioneering and executive capacity; three, and funds advantage: company in hand funds ample, and liabilities rate low, can pry moving of funds volume up to 5 billion or 6 billion, enough to support company future two years of business development.

Maintaining a “buy” rating: not considering a situation is expected to 2014-2016 EPS1.26, 1.53 Yuan, 1.84 Yuan profit forecasts, October 15, closing PE are: 21 times and 17 times and 14 times. Maintaining a “buy” rating.

Risk warning: directional uncertainties photovoltaic business development than expected; the other.

Original title: linyang electrical events reviews: overweight photovoltaic power plant investment and continued confidence in the company development

Posted in News.