1. Driven by the sustained and rapid growth of the national economy, especially the rapid growth of electricity consumption for industrial production, the demand for electricity in China will remain strong in the next few years. In 2004, the company continued to maintain strong profitability and substantial growth in operating performance under the unfavorable market conditions of the national coal price generally rising sharply.
2. National Development and Investment Corporation, the major shareholder, is one of the 53 large-scale central backbone enterprises managed by SASAC. At present, it has formed a certain scale in electric power, coal, fertilizer, electronics, auto parts and high-tech medicine, and achieved good economic benefits; The strong strength of major shareholders will provide a strong guarantee for the long-term development of the company.
3. It is still expected to enjoy national tax incentives. Jingyuan and Qujing, which belong to the company, are located in the western region and enjoy preferential income tax policies for the development of the western region, which are not affected by the merger of income tax of domestic and foreign-funded enterprises. Therefore, the income tax merger of domestic and foreign-funded enterprises will not have a substantial impact on SDIC power.
Negative factors:
1. Domestic thermal coal prices have continued to rise sharply, and the power generation costs of thermal power enterprises affiliated to the company have increased, and their profitability has declined. At the same time, under the market conditions of general shortage of coal supply, the quality of coal supplied by the company is difficult to guarantee. Due to the decline of coal quality, equipment loss and hidden dangers of safe operation are increasing.
2. For the capital-intensive power industry, the high asset-liability ratio is not conducive to the company's future expansion and development.
Comprehensive comments:
With the sustained and rapid growth of the national economy, especially the rapid growth of industrial electricity consumption, China's electricity demand will remain strong in the next few years; This will provide good development opportunities for the company. With the strong strength of the National Development and Investment Corporation and the excellent overall performance of the power industry, and with the opportunity of the power system reform, if the problem of thermal coal supply can be solved, the development prospect of the company is still optimistic, and the medium and long-term lines have certain investment value. Without the intervention of big funds, it stopped falling.
Wait and see for a short time, wait for the opportunity.