Shanghai Environment (601200) Interim Review:深圳桑拿网 The net profit attributable to mothers increased by 6% in the first half of the year, expecting the intensive operation of the project to boost performance
Core point of view: The steady increase in the number of projects in operation and the net profit attributable to mothers increased by 5 in the first half of the year.
8% of the companies disclosed their 2019 Interim Report, with the company’s revenue in the first half of the year13.
22 ppm, a ten-year increase of 8.
9%; net profit attributable to mother 2.
9.6 billion, a five-year growth of 5.
The growth of the company’s revenue and profits was mainly due to the continuous increase in the volume of waste incineration projects in operation and on-grid electricity supply.
There were no new waste incineration projects in operation in one and a half years. The Luoyang project drove the increase of electricity generation on the grid. The company operated 11 domestic waste incineration projects with a total scale of 1.
56 days / day.
In the first half of the year, a total of 322 garbage was brought into the plant.
In 20, the annual growth rate was 3.
15%; garbage incineration on-line electricity 9.
5.4 billion kWh, an annual increase of 4.
44%, of which the Luoyang project, which was commissioned at the end of 2017, has an annual growth of 24%.
In the first half of the year, the company landfilled 134.
38 Initially, the Laogang Biogas Power Generation Project had an on-grid power of 51.84 million kWh and was transferred to waste 68.
35 highest, 17,951 sewage treatment.
The projects under construction have reached 1 budget / day. From 2019 to 2020, it is expected that the intensive waste incineration companies and other solid waste disposal projects will progress steadily, including Weihai waste incineration project (1050 tons / day) and Mengcheng waste incineration project700 tons / day), progress is fast, and it is expected to be put into operation by the end of 2019.
In terms of project expansion, the company added new projects. Weihai expanded two waste incineration projects with a total scale of 1,000 tons / day, added 530 tons / day of Jiading wet waste disposal, and 1,500 tons / day of Jiading construction waste disposal.
Projects under construction 1.
Announcement / day 08, proposed project 0.
34 Initial / day, total waste incineration scale 2 in hand.
97 averages / day.
The waste incineration project is expected to be intensive in operation, which will accelerate the performance. It is estimated that the net profit attributable to mothers will be 5 in 2019-2021.
20,000 yuan, currently sustainable corresponding to 22 times PE in 2019.
The company’s waste incineration development in the field from 2017 to 2019 has accelerated significantly. From 2019 to 2020, it will usher in a peak of operation and promote faster performance.
Shanghai has 佛山桑拿网comprehensively promoted waste classification to generate demand for wet waste disposal. The company has successively invested in Songjiang and Jiading wet waste disposal projects, which are expected to be replicated in other places.
In addition, the company has accelerated the pace of market-oriented development in areas such as soil remediation and hazardous waste.
We expect the company to regain its growth in 2020, using the 2020 performance for evaluation, and referring to the valuation of comparable companies, giving PE 16 times in 2020, corresponding to a reasonable value of 11.
68 yuan / share, give “hold” rating.
Risk reminder: the construction progress of the waste incineration project exceeds expectations; the risk of electricity price compensation is reduced.