Hydropower's 2010 results

According to Wind statistics, as of January 17, 2011, 7 of the 14 listed hydropower companies of the A-shares have released 2010 performance forecasts or express reports, except that the net profit in Leshan Power Disclosure Express Letters was slightly lower than 2009. In addition to the net profit, the remaining 6 net profits in 2010 have increased significantly.

In 2010, hydropower companies can use the term “willow blossoms” to describe. At the beginning of this year, many hydropower companies experienced severe droughts in the southwest, and their performance was frustrated. The situation in June and July was alleviated due to continuous heavy rain in the south. By the end of the year, some hydropower companies benefited The government completed the "Eleventh Five-Year Plan" energy-saving emission reduction task and adopted the priority of water and electricity dispatch policy. Overall, the performance of hydropower listed companies in 2010 was relatively good.

The multiple factors that led to the pre-increase of performance to promote the performance of hydropower listed companies in 2010 are mainly due to the increase in power generation and the increase in electricity prices. Statistics show that Guidong Power expects its net profit in 2010 to increase by 150% to 200% compared to the same period of last year, due to the company’s increase in self-generated electricity in 2010, and the overall sales price has increased. The company’s subsidiary Guidong Electronics’ operating efficiency is good. Annual results have increased significantly from the previous year.

The performance report of Yangtze Power disclosed that the company achieved operating revenue of 21.968 billion yuan in 2010, an increase of 99.44% over the same period of last year; and a net profit of 8.445 billion yuan, an increase of 82.83% over the same period of last year. This increase was higher than the company's previously expected 50% increase in net profit. According to analysts, the growth of the company's performance mainly comes from the increase in the installed capacity of the reorganization.

*ST Express report on the performance of electricity, the company achieved a net profit of 140 million yuan in 2010, to achieve a loss, 2009 net profit loss of 57.81 million yuan. It is understood that the momentum of recovery of vitality from earthquakes by *ST has been revealed in the 2010 interim report. The company has suffered a heavy blow in the Wenchuan earthquake. According to the company, after reconstruction, with the gradual restoration of power generation and power supply facilities, the company’s power generation and power supply in 2010 increased significantly. The company’s major investment unit’s operating performance exceeded the pre-earthquake level, plus the company’s equity investment income, making the company Loss of business success.

It is expected that the policy will continue to enjoy positive benefits. With the government’s emphasis on the development of clean energy such as hydropower, the investment and construction of hydropower projects will gradually enter a climax. With the increase in policy support, the prosperity of the hydropower industry is also expected to increase.

Statistics show that Wuyuan Power expects net profit for 2010 to be 37-42 million yuan, up 10%-25% year-on-year, due to the increase in power generated by the new units. ST Mei Yan expects a substantial increase in net profit in 2010 compared with the same period last year. Leshan Power released a performance report, showing that in 2010 the company achieved operating income of 1.779 billion yuan, an increase of 89.78%; net profit of 62.421 million yuan, an increase of 9.94%.

In addition, some hydropower companies have benefited local governments to complete the temporary policies for the “Eleventh Five-Year” energy-saving and emission reduction tasks. For example, in the fourth quarter of 2010, in order to complete the “Eleventh Five-Year Plan” energy-saving and emission reduction plan, Sichuan Province restricted thermal power generation and encouraged more hydropower generation. At the same time, as Sichuan Hydropower implemented the peak Pinggu electricity price, in December it was a dry season, and the hydropower grid-connected electricity tariff was relatively high, resulting in Sichuan The fourth-quarter performance of the investment in hydropower business exceeded expectations. However, Everbright Securities researchers also said that due to the December hydropower oversupply will cause hydropower companies to reduce water storage that year, may affect hydropower generation the following spring.

Despite this, market participants predict that in the future, with the determination of the "12th Five-Year Plan" energy-saving and emission-reduction targets, hydropower generation will continue to obtain a more favorable dispatch policy than thermal power, and the hydropower industry's performance is expected to continue to be supported.