Wangneng Environment (002034) Interim Review: Construction projects put into operation as scheduled to bring high performance
Event: The company released its 19-year interim report.
The company achieved total operating income of 5.
68 ppm, an increase of 49 in ten years.
46%; Net profit attributable to shareholders of listed companies.
07 million yuan, an increase of 66 in ten years.
56%; net cash flows from operating activities2.
77 ppm, an increase of 67 in ten years.
62%; basic profit income is 0.
5 yuan; expected average return on net assets is 5.
52%, increase by 1 every year.
At the same time, the company estimates the net profit attributable to shareholders of listed companies from January to September 19.
30,000 yuan, an increase of 29 in ten years.
Opinion: The number of projects in operation increased, and the performance growth was in line with expectations.
In the first half of 19, the company’s performance increased significantly, of which the company achieved total operating income in the second quarter3.
470,000 yuan, an increase of 74 in ten years.
87%; Net profit attributable to shareholders of listed companies.
43 ppm, an increase of 93 in ten years.
In terms of business, operating income from household and kitchen waste projects4.
9.2 billion, accounting for 86.
64%, an annual increase of 31.
60%; Environmental protection equipment installation income is 0.
70 trillion, accounting for 12.
25%, an increase of 2348 per year.
68%; revenue from sludge disposal business was 477.
310,000 yuan, an increase of 47 in ten years.
The first half of this year, the new projects put into operation and the new and expanded projects in mid-2018 caused the company’s capacity expansion to be the main reason for revenue growth; the company’s domestic waste and food waste operation projects increased gross margins, resulting in higher profit growth than income growth.
Domestic waste incineration power generation projects continue to be put into operation, and it is expected that the production capacity will be further increased in the second half of the year.
In the first half of 19, the company’s Panzhihua Wangneng (800 tons / day), Hechi Wangneng (600 tons / day), and South Taihu Wangneng Phase IV (750 tons / day) projects were put into operation, and the total supplementary domestic waste incineration power generation capacity was 2,150 tons./ Day; and Xuchang Wangneng (2250 tons / day) entered the trial operation phase in the middle of the year.
The company’s operating capacity has been significantly improved.
At present, the company’s Huaibei Wangneng, Zhoushan Wangneng Phase III, Taizhou Wangneng Phase III, and public security Wangneng projects continue to advance. Subsequent projects will continue to increase the company’s processing capacity.
In addition, the company has continued to develop domestic and foreign markets. Currently, it has tracked 18 projects, forming a foundation for sustainable development.
The front-end waste classification policy was implemented, and it is expected that the single-ton power generation capacity will be increased.It is expected that the front-end classification of domestic garbage will have an impact on the amount of garbage in storage and the amount of electricity generated by single ton of domestic garbage incineration.
At present, according to the situation of the solid waste base in Laogang, after the implementation of waste classification, the amount of waste processed every day gradually decreases by 1,000 tons, and the power generation per ton increases from 480 kWh to 550 kWh.
Obviously, the separation of wet waste such as kitchen waste reduces the amount of garbage entering the warehouse, but increases the amount of electricity generated per ton.
The company’s domestic waste incineration power plants are located in Zhejiang, Hubei, Sichuan, Henan, Anhui, and Guangdong.
In the first half of 19, the company completed the initial value of the domestic garbage storage volume of 203 and the power generation volume of 6.
4.7 billion degrees.
Considering the gradual implementation of classification, it is expected that the company’s single ton of waste power generation will increase; however, the impact of short-term storage replacement on the comprehensive profitability of power plants still needs to be observed.
The gross profit margin has increased significantly and is expected to stabilize in the second half of the year.
In the first half of 19, the company had a gross profit margin of 55 for the operation of its domestic and kitchen waste projects.
35%, an increase of 9 a year.
The company’s gross profit margin has increased significantly, and it is expected that it will be affected by the 18-year increase in the maximum production capacity of the Zhonghechi Project, the Panzhihua Project and the Expansion Project, which will be transformed into the 18-year Lanxi Project, Jingzhou Project, and Taizhou Project’s waste treatment unit price increase.
Taking into account the ramp-up period of production capacity of domestic waste incineration power generation projects and the subsequent project commissioning, the company’s gross profit margin for its operating projects promoted stability.
Capital expenditure is estimated, and the issuance of convertible bonds has entered the feedback response stage.
At present, the company’s domestic garbage incineration power generation treatment capacity under construction and preparation is around 1, while the new incineration power plant has an investment of more than 400,000 per ton and the expansion investment of more than 200,000 per ton.
In 19 and 20, the company’s domestic waste incineration power generation project was at the peak of construction and operation, and the company was facing constant capital expansion pressure.
At present, the main sustainable long-term project loans and cash flow from its own operating activities are used for project construction.
As of June 30, 19, the company’s long-term loan balance was 26.
99 ppm, no short-term borrowings 重庆耍耍网 and bonds payable.
In addition, the company plans to issue no more than 14 in April 19th.
The USD 500 million convertible corporate bonds, after deducting the issuance costs, will be used for the third phase of Taizhou expansion, Jingzhou expansion, Quxian project, Qingtian county project, and Gongan county project construction.
At present, the company’s convertible bond issuance has been approved by the shareholders’ general meeting, and it has entered the feedback response stage of the CSRC.
Subsequent financing of convertible bond projects will help reduce the company’s financing pressure and accelerate the construction of power plant projects.
Maintain the company’s “overweight” investment rating.
Regardless of the company’s issuance of convertible corporate bonds for the time being, it is expected that the company’s fully diluted EPS in 19 and 20 will 淡水桑拿网 be 1.
32 yuan, according to 13 on August 14.
Calculated at the closing price of 91 yuan / share, the corresponding PE is 13 respectively.
2 and 10.
The company’s estimated level is relatively low relative to growth expectations.
Considering that the company’s large number of projects under construction in the 19 and 20 years have entered the operating phase and the company’s good cash flow of operating activities, the company maintains its “overweight” investment rating.
Risk reminder: The construction progress of domestic waste incineration power generation projects is less than expected; capital expenditure is prolonged, and financial pressure is increased; the development of domestic waste incineration power generation projects in the field is less than expected.