Hanlan Environment (600323) semi-annual report comment: deducting non-excellent performance and attacking solid waste leader
2019H1 results are in line with expectations.
The company achieved operating income of 26 in 2019H1.
70,000 yuan, 16.
6%, net profit attributable to mother 4.
60,000 yuan, -7.
9%. The decrease in net profit attributable to mothers was mainly due to the company’s confirmation of the disposal of equity in the government kiln market1.
5 trillion non-recurring gains and losses.
The company’s 2019H1 deducts non-returning net profit4.
50,000 yuan, 25 compared with the same period last year.
6%, benefiting from the incineration of the waste incineration capacity of the Shunde project and the rapid advancement of coal-to-gas conversion in the ceramics industry in Foshan, the company’s core business achieved excellent performance growth.
The gross profit margin was stable, the three fees decreased slightly, and operating cash flow declined.
The company’s overall gross profit margin for 2019H1 was 29.
8% is basically stable. 2019H1 sales expense ratio, management expense ratio and financial expense ratio are 1.
9 points), 6.
4pct) slightly decreased.
Net cash flow from operating activities 4.
100 million (-4.
9%), mainly due to the increase in accounts receivable and prepaid accounts, including accounts receivable 6.
80,000 yuan, 63 than the same period last year.
3%, mainly due to the replacement of some waste-to-energy projects without replacement, prepayments3.
80,000 yuan, 36 compared to the same period last year.
8%, mainly due to the increase in prepaid solid waste engineering and equipment payments during the project expansion period.
Undertake Shengyun environmental protection projects and attack the waste incineration faucet.
The company announced in June that it will undertake 6 projects of Shengyun Environmental Protection, with scale 2 in hand before undertaking.
In the early days of 76, the management and scale were leading in the industry, of which 1 had been put into operation.
48 day / day, under construction1.
28 On Monday / Sunday, 2018 increased production capacity by 4,550 tons / day, this time a substantial expansion of 4,800 tons / day, and the production capacity jumped to 3.
24 a day / day (+ 17%), and the Hanlan model has excellent operation, leading management, and sufficient growth momentum for future performance of conversion projects.
The solid waste sector is booming and the company’s core growth engine.
With the steady progress of the construction of non-waste cities, the release of waste incineration capacity has accelerated, and the operating effect has shifted to the exit of low-cost competition strategies, and the profitability of the industry has improved.
The company’s 2019H1 solid waste revenue increased by 37.
0%, hope to continue to focus on strength in the future, reserve capacity is expected to intensively put into production within the next two years.
In addition, the company’s hazardous 成都桑拿网 waste business is an increase in profit. Jiangxi Honghua (4.
8 was originally landfilled +1.5 Ignition and incineration capacity) has been put into operation, and the Foshan project (9.
3 years / expected to be completed by the end of the year.
Gas and water business grew steadily.
The gas business benefited from the coal-to-gas demand in Foshan’s ceramics industry, which increased by 17 in 2019H1.
2%; drainage business increased 37.
The increase of 4% is mainly due to the upgrading and upgrading of sewage treatment plants, which will increase the treatment fee and supplement the operating income of the sewage pipe network; the transportation business is stable and stable.
Investment suggestion: The company has excellent operating assets, deep plowing the solid waste business, the waste incineration capacity 上海夜网论坛 will be further expanded after undertaking the Shengyun project, and the hazardous waste will provide new growth.
The company has good cash flow, stable assets, and outstanding shares (operating income in the past 5 years / net profit attributable to CAGR 37% / 30%). The 2019 performance increase comes from Shunde waste incineration, Jiangxi hazardous waste, ceramics to coal gas, sewageThe bidding is expected to return to the net profit of the mother from 2019 to 2021.
50,000 yuan, corresponding to EPS1.
50, corresponding to PE16 / 13/11, it is estimated that the advantage is obvious, optimistic about future development, and maintain a “buy” rating.
Risk Warning: Uncertainty of the Investment Cooperation Framework Agreement, Unexpected Release of Waste Incineration Capacity, Uncertainty of Impact of Natural Gas Revenue Policy