Tens of billions of big moves, this hydropower company out of the blue

10 billion to invest in the construction of Baiyantan Reservoir pumped storage power station project! Market capitalization of less than ten billion dollars of traditional water conservancy and hydropower leader Guangdong Hydropower again big move.

Guangdong Hydropower to build reservoir pumped storage power station project

Total investment of about 10 billion yuan

July 25 evening, Guangdong Hydropower announced that on July 25, 2022, the company and the people's government of Xuanhan County, Dazhou City, Sichuan Province, signed the Xuanhan County People's Government of Guangdong Hydropower Second Bureau Company Limited Baiyantan Reservoir Pumped Storage Power Station Project Investment Promotion Agreement" "Xuanhan County People's Government of Guangdong Hydropower Second Bureau Company Limited Baiyantan Reservoir Pumped Storage Power Station Project Investment Promotion Supplementary Agreement".

The People's Government of Xuanhan County agrees that the Company shall invest in the construction of Baiyantan Reservoir Pumped Storage Power Station Project in its territory, which is expected to have an installed capacity of 1.2 million to 1.6 million kilowatts (subject to the approved installed capacity of the project), with a total investment of about 10 billion yuan. The company will utilize its own funds and loans from financial institutions, etc. to make the investment.

The project is planned to realize the project start construction within 18 months after the establishment of the project company, and to complete the project engineering and construction tasks and pass the acceptance within five years after the project start construction, and to generate power and connect to the grid.

Guangdong Hydropower said the company has rich experience in investing and constructing clean energy power generation projects, advanced technology, sufficient personnel and financial security, and has the ability to fulfill the agreement. The fulfillment of the agreement will not affect the independence of the company's business, and the company's main business will not form a dependence on the Xuanhan County People's Government due to the fulfillment of the agreement.

Guangdong Hydropower reminds that the agreement is a framework agreement for investment; the quantity involved in the agreement is the target of cooperation between the two sides, and the actual situation will be subject to the actual occurrence in the future; the implementation of the pumped storage power station project shall obtain the approval of the Development and Reform Commission of Sichuan Province, so there is a certain degree of uncertainty in the implementation of the agreement. The signing of the agreement will not have a material impact on the operating results of the Company in 2022.

Frequent strikes, investment layout

It is worth mentioning that, at the end of June, Guangdong Hydropower has just joined hands with Danyou Agriculture, intends to invest not more than 3 billion yuan to participate in the establishment of clean energy industry fund.

June 30, Guangdong Hydropower announced that the company signed a "framework agreement on *** with the participation in the establishment of clean energy industry fund" with Daiyou Agriculture (Beijing) Co. The two sides agreed to *** with the participation in the establishment of clean energy industry fund to reach a framework agreement, the two sides intend to set up the organization of the industry fund is intended to be a limited partnership, the total size of the plan is 10 billion yuan, to be implemented in phases, the company intends to act as a limited partner of the industry fund, the contribution of no more than 30% of the total size of the industry fund.

Announcement shows that the company is mainly engaged in engineering construction and clean energy investment and development; Daiyou agriculture in Qinghai and other places are promoting the development of comprehensive agricultural and animal husbandry industrial parks, in order to drive the rural revitalization of the western region. The two sides through cooperation to set up an industrial fund, with the resources and advantages of Dayou Agriculture, in Qinghai and other western regions to vigorously develop photovoltaic power generation, wind power generation and other types of clean energy projects.

Also on May 30, Guangdong Hydropower subsidiary to 10 billion yuan to invest in the construction of 2 million kilowatts of photovoltaic + demonstration park project. The company's wholly-owned subsidiary Xinjiang Guangdong Hydropower will invest in the territory of Awati County to build 2 million kilowatts of photovoltaic power station, supporting energy storage, booster station and other facilities and equipment, combined with photovoltaic construction to carry out sand control, agriculture, science and technology, tourism and other projects, with a total investment of about 10 billion yuan.

In addition to this, Guangdong Hydropower's recent good news continues. on July 25, Guangdong Hydropower announced that the company received a report from its wholly-owned subsidiary Xinjiang Guangdong Hydropower Energy Company Limited (hereinafter referred to as Xinjiang Guangdong Hydropower), Xinjiang Guangdong Hydropower's wholly-owned subsidiary Hami Guangdong Hydropower Energy Company Limited invested in the construction of the Xinjiang Hami Thirteen Room Phase I 50MW wind power project on July 22 to realize the entire unit On July 22, all units were connected to the grid. The grid-connected power generation of this wind power project will have a certain effect on the future operating results of the Company and Xinjiang Guangdong Hydropower.

July 18, Guangdong Hydropower issued another announcement that all units of Hanjiang Gaopi Hydropower Hub (Longhu Hydropower Station) have been connected to the grid, which will enhance the company's future operating results.

July 14, Guangdong Hydropower said, the company received Dazhou Dachuan District Yunmen Water Investment Limited Liability Company from the "Notice of Award", identifying the company as the Dazhou Dachuan District Bamboo Gully Reservoir Project winning unit, the winning bid price of 344 million yuan.

Actively expanding the clean energy power generation business

Share price performance, the stock, although the recent performance is flat, but from the year's share price performance, the stock has accumulated nearly 50%. In particular, on March 18, Guangdong Hydropower announced that it intends to introduce the news of the core business assets of the construction sector of the construction holding through restructuring acquisitions, resumption of trading closed five consecutive stops. As of now, the stock is at 8.21 yuan, with a total market capitalization of 9.871 billion yuan.

Data shows that Guangdong Hydropower is a set of design, construction, construction, operation and management of the whole process of service in one of the construction industry state-controlled listed companies. The company's main business is water conservancy and hydropower and rail transportation and other engineering construction, hydropower, wind power, solar photovoltaic clean energy generation.

Tianfeng Securities said, Guangdong Hydropower's traditional main business benefited from the golden period of water conservancy development, clean energy power generation and hydrogen energy business to create a new growth pole. Engineering construction business first, water conservancy + pumped storage + rail transportation three-wheel drive, layout of clean energy power generation, to create a second growth curve, medium and long-term growth is strong. Valuation in the medium and long term is more cost-effective, with significant investment value.

Galaxy Securities believes that Guangdong Hydropower based in Guangdong, water conservancy + rail transportation construction market space is vast. Double carbon drive energy transformation, the future proportion of clean energy generation will continue to improve. The company in Xinjiang, Gansu and other northwestern regions and Guangdong, Shandong and other southeastern coastal areas to actively expand the clean energy power generation business, as of the end of 2021, the company has been put into production power generation of clean energy projects with a total installed capacity of 1,42.38MW, of which hydroelectricity 263MW, wind power generation 673MW, photovoltaic power generation of 606.38MW. at the same time, the company is the largest wind turbine tower manufacturer in Guangdong Province, the first domestic wind power equipment manufacturer. At the same time, the company is the largest wind power tower manufacturer in Guangdong Province, the first echelon of domestic wind power equipment manufacturing enterprises, the future development prospects are promising.