High-Energy Environment (603588): Focus on the three booming industries, long-term performance and high growth can be expected

High-Energy Environment (603588): Focus on the three booming industries, long-term performance and high growth can be expected
Investment Highlights: High Energy Environmental Disclosure Annual Report: Realized Revenue in 2018 37.60,000 yuan, an annual increase of 63.2%; net profit attributable to mother 3.2 ten percent, an annual increase of 69.1%, budget benefit 0.49 yuan.A cash dividend of 0 is proposed for every 10 shares.50 yuan (including tax). The company also disclosed a quarterly report and realized revenue in the first quarter of 20196.Eight ten percent, an increase of 36 per year.8%, net profit attributable to mother 0.5.5 billion, an annual increase of 76.7%. Ping An’s perspective: Three major businesses are working together and high performance can be expected: In 2018, the company’s revenue from environmental restoration, domestic waste treatment and hazardous waste treatment was 12 respectively.95, 9.48, 11.6.2 billion, an increase of 68 each year.55%, 154.53%, 89.12%, contributing to the main income increase.The “Soil Pollution Control Law” came into effect on January 1, 2019, and the company will continue to benefit as a leader in soil remediation.The company’s domestic waste treatment mainly comes from project construction revenue. Currently, the first phase of the Sihong project has been put into operation, and Hetian, Hezhou and other projects have entered the later stage of construction. It is expected to start 青岛夜网 production in 2019. The waste incineration operation will soon begin to contribute revenue.The quality of the company’s hazardous waste projects is relatively good. Currently, the approved operating scale of projects in operation exceeds US $ 5 billion / year, the approved operating scale of projects under construction exceeds US $ 3 billion / year, and the project reserves are sufficient.The industries in which the company’s three major businesses are located are in a boom cycle, and high performance can be expected. Order acquisition is accelerating, and the remaining orders are in hand: the company added orders 78 in 2018.4.5 billion, an increase of 136 in ten years.44%, recovering high growth.Among them, the environmental repair field is supplemented by order 20.79 trillion, an increase of 98 in ten years.95%, new orders for domestic waste treatment and disposal 38.170,00杭州夜网0 yuan, an increase of 268 in ten years.08%, new orders for hazardous waste treatment and disposal14.07 million yuan, an increase of 99 in ten years.57%.As of the end of the first quarter of 2019, the company had a total of 124 orders in hand.18 trillion, of which 99 are still budgetable orders.0.5 billion, sufficient orders in hand. Cash flow continued to improve, and the company’s operations continued to improve: In 2018, the company’s net cash flow from operating activities.220,000 yuan, an increase of 217 in ten years.15%, mainly due to the continuous increase in the proportion of operating businesses such as hazardous waste, transformation, environmental recovery business repayment is relatively fast.The company’s cash flow strength will accelerate the construction progress of the waste incineration project.The company’s period expense ratio was 14 in 2018.41%, down by 1 every year.75 units.The sales expense ratio, management expense ratio and financial expense ratio are 2 respectively.16%, 6.42%, 2.73%, which decreases by 0 each year.48, 0.79, 0.With 58 shares, the company’s operations continued to improve. Investment suggestion: According to the company’s latest operating conditions, we adjust the company’s net profit attributable to mothers for 2019-2021 to 4, respectively.62, 5.96, 7.50,000 yuan (original value of 4 in 2019).160,000 yuan, original value 5 in 2020.2.2 billion), an increase of 42 each year.3%, 29.1%, 18.1%, the corresponding PE is 17 respectively.2, 13.4, 11.3.Taking into account the acceleration of the company’s soil repair orders, the gradual release of hazardous waste production capacity, the waste incineration project is about to enter the production cycle, and the company’s performance growth in the next two years will be deterministic. Based on this, the company maintains a “recommended” rating. Risk reminders: 1) Construction progress of the waste incineration project exceeds expectations: At present, the state’s strict progress in the approval of construction projects for engineering projects may affect the progress of the company’s solid waste projects under construction; 2) Project development is less than expected: the current environmental protection industry is highly competitive, andHigh-quality projects are gradually decreasing. Against this background, the company has the risk of new project expansion falling short of expectations; 3) The market financing environment continues to tighten: Considering the scale of the company’s projects under construction, the required funds are allowed. If the market financing environment continues to tighten, it mayThe company’s project construction progress has an impact.

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