There are many A-share public utility stocks, such as railways, highways, thermal power, hydropower, nuclear power, gas, water, etc. Their common characteristics are that their prices are regulated. Why does hydropower enjoy a high valuation?
Take Gezhouba Power Station as an example:
The first unit of Gezhouba Power Station was put into operation in 1981, and it still operates well 40 years after it was put into operation (according to the comprehensive depreciation period disclosed by Yangtze Power is 27 years). It is reasonable to speculate that the Gezhouba Dam can still be used for a hundred years.
Gezhouba Turbine Unit Renewal Project: 21 units are installed in the power station, the original total installed capacity is 2715MW, and the annual average power generation of the power station is 15.70 billion kW·h. After the implementation of the renovation, reconstruction and capacity expansion project of the hydro-generator units of the Gezhouba Hydropower Station, the total installed capacity of the power station will reach 3190MW (170×2+150×19), an increase of 475MW compared with the original design value of 2715MW (170×2+125×19). The update and addition of the generator set equipment does not involve the structural transformation of civil engineering. The project is carried out in conjunction with the repair of unit A. The update of the generator set uses the existing facilities and is only implemented in the power station workshop. The updated units will be completed within ten years. The project will not add new land, and will not generate resettlement. The total investment of the Gezhouba Hydropower Station unit renewal, reconstruction and capacity expansion project is 895.8353 million yuan. The above are the tender documents for the renewal and reconstruction of the Gezhouba turbine unit.
According to the statistics of the power generation of Gezhouba in the past five years, the power generation capacity of the power station has increased from less than 17 billion kWh before the renovation to 19 billion kWh. According to the existing fiscal and taxation policies, the value-added tax can be deducted for the renovation project, and the actual project cost can be deducted from the tax.
The service life of a hydropower station is much longer than the depreciation period, and the cost of renovation of the hydro turbine unit is small, and the renovation may increase economic and social benefits at the same time. Excessive depreciation, which results in real profits far higher than reported profits, is the reason why hydropower enjoys higher valuations than other utilities.
This topic has 103 discussions in Snowball, click to view.
Snowball is an investor’s social network, and smart investors are here.
Click to download Snowball mobile client http://xueqiu.com/xz ]]>
This article is reproduced from: http://xueqiu.com/9742512811/221217339
This site is for inclusion only, and the copyright belongs to the original author.