Wangneng Environment (002034) 2019 First Quarterly Report Review: 2019Q1 Performance Is Lower Than 2018Q4 2019H1 Performance Forecast Meets Expectations

Wangneng Environment (002034) 2019 First Quarterly Report Review: 2019Q1 Performance Is Lower Than 2018Q4 2019H1 Performance Forecast Meets Expectations

This report reads: The company’s net profit attributable to the company in the first quarter of 2019 increased by 27% year-on-year; the operating performance forecast is expected to increase by 37 during the same period in 2019H1.

1% -69.

3%.

2019Q1 performance is lower than 2018Q4, and the 2019H1 forecast growth rate is in line with expectations.

Investment Highlights: Maintain “Overweight” rating.

Maintain the estimated net profit for 2019-2021 is 4 respectively.

19/5.

25/6.

3.1 billion, corresponding to an EPS of 1.

01/1.

26/1.

51 yuan.

Considering the good quality of the company’s performance and the large flexibility of production capacity, it gave 25 times PE in 19 years and maintained its target price to 25.

3 yuan, 45% upside from the previous closing day, maintaining “overweight”.

2019Q1 performance is lower than 2018Q4, and the 2019H1 forecast growth rate is in line with expectations.

The company’s 2019Q1 net profit of 63.58 million slightly exceeded expectations, lower than the previous quarter of 2018Q4’s single-quarter net profit of 82.5 million, or the disturbance of single-quarter profit due to factors recognized in project progress.

The company also expects that the net profit attributable to H1 2019 will increase by 37.

1% -69.

3% means that the second quarter of 2019 will 杭州桑拿 achieve net profit in a single quarter.

1-1.

500 million, the company’s stock projects are progressing smoothly, and the growth rate of 2019H1 is in line with expectations.

The profit rate in 2019Q1 increased slightly compared to 2018, and it is expected that it will gradually rise in the future.

2019Q1 gross profit margin 49.

33%, net profit margin is 29.

34%, compared with 52 in 2018.

13%, net profit margin 37.

27% has improved, but slightly improved compared to the first quarter of 2018, mainly due to the disturbance of the project’s production schedule, and it is expected that it will gradually rise to 2018 levels in the future.

Cash flow remained smooth and assets were good.

The project in progress is progressing smoothly and the capital reserve is worry-free.

1) Cash received from the company’s 深圳spa会所 2019Q1 sales of goods and labor services2.

5.6 billion (= revenue 1.

16 times), net cash flow from operating activities1.

25 billion (= net profit1.

97 times).

2) The company currently has a total waste incineration capacity of 28,450 tons / day. As of 2018, 10,250 tons / day of projects have been put into operation. In 2019, it will usher in a peak period of capacity production.

As of 2019Q119.

1.4 billion, asset-liability ratio of 45.

5%, still the highest level in the industry, with cash in hand8.1.4 billion, no worry about capital reserves.

Risk reminder: Changes in the subsidy policy of the waste incineration industry, and the project’s production progress exceeds expectations.

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