Shenzhen energy investment earnings expected to grow sharply

China Merchants Securities, Shenzhen Energy (000027, closing price of 13.28 Yuan) the first half of the net profit growth of 110% per share earnings of 0.47 yuan. Power generation business in the adverse situation of 18% decline in electricity output to achieve a year-on-year growth of 10%, is expected to contribute to the annual earnings of 0.65 yuan per share, 2010 will further increase to 0.8 yuan.　　Including investment income, 2009 earnings per share of 0.98 yuan, up to "strongly recommended", 6-month target valuation 16~18 yuan. Optimistic about the performance of power generation industry to restore Shenzhen Energy Medium-term performance better than expected. Shenzhen Energy recently released performance advance announcement, is expected to achieve the first half of the parent company's net profit of 1.04 billion yuan, equivalent to 0.47 yuan per share, an increase of 110%. The Company believes that the main reason for the big increase in performance is the sale of some of the listed companies ' shares, resulting in a significant increase in investment earnings year-on-year.　　This performance is better than investment securities before the forecast of the medium-term earnings per share of 0.4 yuan. China Merchants Securities is optimistic about the performance recovery of the company's power generation industry. China Merchants Securities believe that, although the company to sell shares to contribute to the performance, but the main business profitability recovery is still more than expected. The first half of the company sold shares accumulated contribution to investment income of 414 million yuan, equivalent to 0.19 yuan per share earnings. Equity Guotai and other companies in the first half of the dividend to account for about 90 million yuan, the contribution of earnings per share of about 0.04 yuan. After deducting the investment income, the company generates 0.24 yuan per share in the first half.　　The first quarter of the company to achieve earnings per share of 0.08 yuan, two quarterly main business to achieve earnings per share of 0.16 yuan. The first half of Shenzhen energy output fell 18% year-on-year, but the power generation business achieved net profit growth of 10%, net interest rate significantly increased.　　In the second half of the production of a sharp rebound relatively determined, at the current fuel cost, the estimated three or four-quarter power generation business contribution per share of earnings in more than 0.2 yuan, the second half of the power generation industry contribution per share should be more than 0.4 yuan, the annual power generation business cumulative contribution per share should be around 0.65 Investment income in the second half of the year will increase the company's holdings of financial assets more space, investment income will continue to increase in the second half. The company holds Guotai 120 million shares, the Great Wall securities 270 million shares, all unlisted financial enterprise assets equivalent to 2.1 yuan per share value.　　In the second half of the year, Shenzhen Energy will continue to sell shares of listed companies, contributing 0.1 yuan per share. According to the 2009, 2010 years of power generation industry earnings per share 25 times times and 20 times times PE calculation, the company value of 16 yuan per share.　　Taking into account the company's ownership of unlisted financial enterprises, a reasonable value of about 4.6 billion yuan, equivalent to 2 yuan per share, the proceeds of these investments will be gradually cashed in the future. The company still has more potential positive. Datong Hang Hau coal prices and qinhuangdao market coal prices in the gradual decline, the second half of the company's power generation main business performance is still likely to continue to rise. Shenzhen Energy has signed a strategic cooperation agreement with China's broad nuclear group, which may participate in the construction of nuclear power plants in the second half. The company invests in the Binhai power plant kw MachineThe group may be approved within the year.　China Merchants Securities to increase the company 6-month target price to 16~18 yuan. China Merchants Securities