Environmental science of science and engineering: the environmental monitoring business has developed rapidly and the follow-up power is sufficient.
Science and engineering environmental science 002322
Research Institute: central china securities Analyst: Gu Date of writing: April 28th, 2022.
Event:
The company released the annual report of 18, achieving a total operating income of 994 million yuan, a year-on-year increase of18.08%; The net profit attributable to shareholders of listed companies was 257 million yuan, a year-on-year decrease of 8.08%; The net cash flow from operating activities was 65.438+0.84 billion yuan, a year-on-year increase of 265.438+0.26%; The basic earnings per share is 0.66 yuan; It is proposed to distribute bonus 3 yuan (including tax) for every 10 share.
Comments:
Environmental monitoring business constitutes the core driving force of the company's revenue growth. From 65438 to 2008, the company increased its income without increasing its profits. In the fourth quarter, the company achieved a total operating income of 439 million yuan, a year-on-year increase of 26.74%. The net profit attributable to shareholders of listed companies was1.1.300 million yuan, up only 1.72% year-on-year. In the whole year, the company accrued an asset impairment loss of RMB 46 million. The main reasons for the company's revenue growth are: 1) the rapid growth of environmental monitoring business with Shangyang Huanke as its main business; 2) New business growth of software and information business. The company's net profit decreased slightly year-on-year, mainly due to the year-on-year decrease in sales of cost products with higher gross profit margin.
Shangyang Huanke has obvious competitive advantages in the field of water quality monitoring, and it is predicted that 19 will maintain a high growth rate. The company's environmental protection business includes water quality, atmospheric monitoring, soil remediation and environmental information business. Among them, Shangyang Huanke 18 achieved an operating income of 405 million yuan (76.39% year-on-year) and a net profit of 83 million yuan (42.58% year-on-year). In 18, the field of water quality monitoring of Shangyang Huanke expanded rapidly and extended to the field of atmospheric monitoring. The company won the bid for the "National Surface Water Automatic Monitoring System Construction and Operation and Maintenance Project" of RMB 65,438+0.71100 million, and won the bid for the construction of water quality monitoring stations or data procurement projects in prefecture-level cities. We believe that the continuous awards of national and municipal water quality projects reflect that their technical level and product quality have been fully recognized by the market. In addition, the company entered the field of atmospheric monitoring by cutting into the construction of township air quality monitoring stations. Under the background of heavy water quality monitoring and sinking atmospheric monitoring points, the company can fully enjoy the industry development dividend. By the end of 18, the company's outstanding orders reached 847 million yuan. In 65438+2009, the company won the bid for the construction project of Zhongshan Environmental Protection Bureau's Zhongshan River water quality automatic monitoring platform, with a package of 68.688 million yuan, and the orders in hand were abundant. Considering the short execution cycle of environmental monitoring orders, we believe that the environmental monitoring sector will continue to grow at a high speed in 19.
The field of soil remediation has a broad market prospect, so it is necessary to pay attention to the capital demand from the engineering business attribute. The company's soil remediation business is based on Hunan Bilan Environmental Protection Technology Co., Ltd.. 18 years, Hunan Bilan achieved a total operating income of 65,438+23 million yuan (YOY- 17.50%) and a net profit of 45 million yuan (YOY3.40%), slightly lower than the performance commitment (53.74 million yuan). The company independently develops the core technology of thermal desorption and LG00 1 thermal desorption additives and complete sets of equipment, which is more cost-effective than the traditional thermal desorption technology. In 18, the company won the bid for the restoration project of Guizhou landfill and the chemical pollution restoration project of Taizhou, achieving the goal of going out of Hunan. With the formal implementation of the Law on the Prevention and Control of Soil Pollution in People's Republic of China (PRC) in 2022, the prevention, risk assessment, remediation and post-management of soil pollution are clarified at the legislative level, and a systematic remediation process is encouraged. 19, the central government allocated 5 billion yuan of special funds for soil remediation, up 42.9% year-on-year. There is a huge market space for soil remediation, and the current owners are mainly the government. Its business model is mainly project general contracting, and the influence of financing progress and payment progress on performance needs to be considered.
Power software information products are more competitive and the product line is further improved. The company's power software and information business is mainly carried out by its subsidiary, Jiangxi Weber, covering standardized software development and technical services, customized software and other software. /kloc-in 0/8, Jiangxi Webber realized an operating income of 375 million yuan, a slight increase of 2.47% year-on-year; The net profit was 654.38+66 billion yuan, down 23.59% year-on-year. The slight increase of its revenue and the decline of its net profit are mainly affected by the high base of software centralized version replacement in 17. Excluding the influencing factors, the sales of engineering cost software are stable. The company's power engineering cost software has a high market share, and in 18, the company launched new energy cost software, promoting nuclear power plant quota pricing software, list pricing software, photovoltaic power plant cost software, etc., which is conducive to market expansion. It is expected that with the deployment of ubiquitous power Internet of Things construction by State Grid and smart grid construction by China Southern Power Grid in 19, the company's power informatization business is expected to return to an upward trend.
During this period, the cost should be controlled reasonably, the investment in R&D should be increased, and the technical reserve should be laid. 18 years, the company's three expenses totaled1860,000 yuan, a year-on-year increase of 1 1.64%, which was significantly lower than the income growth rate. Among them, the sales expense was 94 million yuan, a year-on-year increase of 7.63%; Management expenses were 87 million yuan, up 2.95% year-on-year; Financial expenses were 4,955,654.38 yuan+0,000 yuan, up 65,438+093.69% year-on-year. It is worth mentioning that the company 18 increased R&D investment, and the R&D expenditure reached1070,000 yuan, up1/0.26% year-on-year. The company has launched a management and control solution for the whole process of power material supply chain and distribution network construction, and successfully developed a five-parameter analyzer and a remote dynamic quality control platform, which is conducive to product technology accumulation and innovation.
Stock repurchase highlights development confidence, and the second repurchase is expected to implement equity incentives. From February 18 to the end of March 19, the company implemented two stock repurchases continuously. As of March 3 1, 19, the company repurchased 52316,000 shares in the second phase, with a total amount of nearly 50 million yuan and an average repurchase price of 9.56 yuan per share. A total of 24,397,200 shares were repurchased in two phases, accounting for 6 15% of the total share capital. We believe that, on the one hand, if the repurchased shares are subsequently cancelled, the earnings per share will increase; On the other hand, the shares repurchased in the second phase will be used for equity incentives or employee stock ownership plans, which is conducive to binding the consistency of interests and stimulating the vitality of enterprises.
Give the company an "overweight" investment rating for the first time. It is estimated that the fully diluted EPS of the company in 2022 and 2020 will be 0.9 1 yuan and 1.06 yuan respectively. According to the closing price 15.28 yuan/share on April 25th, 2022, the corresponding PE will be 16.7 times and 14.4 times. Considering that the performance growth of the company's water quality monitoring business is relatively certain and the power engineering information products are highly competitive, the company's current valuation level is lower than that of the industry, and the company is given an "overweight" investment rating for the first time.
Risk warning: The company has made many acquisitions before and accumulated a lot of goodwill on its books. If the subsequent profit of the acquired party is less than expected, there is a risk of impairment of goodwill; There are many participants in the field of environmental monitoring and soil remediation, and the competition tends to be fierce, resulting in a decline in gross profit margin of products or services.
Profit forecast and investment suggestion: According to the annual report, we lowered the company's net profit forecast for 2022-2020 by 972,654.38+70 million yuan (original 654.38+0.45 and 654.38+58.9 million yuan) and increased the net profit forecast for 2026.5438+0.65438.
Hanlan Environment: In 2022, after Q 1 deduction, the net profit still grew steadily, and the performance was in line with expectations.
Hanlan environment 600323
Research Institute: fortune securities Analyst: Huang Hongwei Date of writing: April 28th, 2022.
Event: Hanlan Environment released the first quarter report of 2022: q 1 2022, and the company realized operating income of12.54 million yuan (+10.50% year-on-year) and net profit of 1.9 1 billion yuan (year-on-year)
After non-deduction, the net profit returned to the mother still grew steadily, and the performance was in line with expectations: in 2022, Q 1 .9 1 billion yuan (year-on-year -38.08%), mainly due to the disposal in 20 18 years1. In 2022, Q 1 realized the net profit after non-deduction 1.83 billion yuan (year-on-year +9.72%), and the net profit after non-deduction still grew steadily, in line with market expectations. Q 1 in 2022, the company's weighted return on equity, gross profit margin and net interest rate were 3.22%, 27.35% and 14.6 1% respectively, with year-on-year changes of -2.52pct, -8.79pct and-12.95pct respectively. In 2022, the net cash flow generated by the company's operating activities was RMB 22 million (-55.26% year-on-year), and the cash flow declined.
Upgrading of sewage treatment contributes to performance growth: in 2022, Q 1, the company's solid waste treatment power generation business realized power generation of 424 million kWh and electricity sales of 359 million kWh. Q 1 in 2022, the company's cumulative tap water supply was 93.7675 million tons, the cumulative sewage treatment capacity was 5265.438+076.5438+0400 tons, and the unit price of sewage treatment was 65.438+0.08 yuan/ton (year-on-year +65.438+065.438+0.34%).
Solid waste projects will be put into production intensively in 2022-2020, with great performance flexibility: the company's financial target for 2022 is: operating income of 6 billion yuan (+23.76% year-on-year) and total assets of 65.438+08 billion yuan (+9. 14% year-on-year). The company expects that the major capital expenditure in 2022 will be about 3.684 billion yuan, of which the major capital expenditure of solid waste business will be about 2.327 billion yuan. From 2022 to 2020, solid waste projects were intensive, and the hazardous waste project in Ganzhou, Jiangxi Province was put into trial operation on June 5438+ 10, and its performance increased greatly.
Investment opinion: It is estimated that net profit will be realized in 2022-202123 million yuan,123.6 million yuan and144 million yuan respectively, with EPS of 1.34 yuan and1.6/kloc-0 respectively. The company's performance has grown rapidly, with a valuation price-earnings ratio of 15- 17X. The reasonable range of stock price in 2022 is 20. 1 yuan -22.8 yuan, and the recommended rating is maintained.
Risk warning: the solid waste project is put into production less than expected; The business structure is too risk-dispersed.
Weiming Environmental Protection: The company has abundant orders in hand and steady endogenous growth.
Weiming environmental protection 603568
Research Institute: Shanghai Securities Analyst: Ji Lijun Date of writing: May 8, 2022
The project progressed steadily, and Q 1 revenue increased by 48.83% year-on-year.
The company's operating income maintained a high growth trend, mainly due to the official operation of projects owned by Haibin Company, Wuyi Company, Jieshou Company and Wannian Company, and the increase in equipment sales and technical services. Wuyi and Ruian Phase II projects were put into operation in June 5438+ 10. Jieshou and Cangnan Yucang projects were successfully connected to the grid in early February, and Wannian and Jieshou projects were put into operation in March. By the end of the first quarter, Fengxin project has completed the project approval and environmental assessment approval, and entered the construction stage. Longquan, Wencheng and Wuyuan projects have completed the project approval. In the first quarter of orders in hand, the company completed the signing of garbage disposal projects in Lianhua County, Dongyang County and Yongfeng County, with a total disposal scale of 3,900 tons/day. The company's project construction is progressing steadily, and the company's performance growth is highly certain.
Revenue from renewable business increased by 15.06% compared with the same period of last year. In terms of profitability, the gross profit of municipal construction and environmental protection equipment installation decreased significantly, and the gross profit margin of the company's comprehensive business decreased by 3.26 percentage points. At the same time, the impairment of accounts receivable assets accrued by the company increased by 2,565.438 billion yuan compared with the same period of last year, and the performance was lower than expected.
Efforts are expected to be made in the innovation of sanitation mode, the integration of domestic waste classification and renewable resources, and the promotion of solid waste projects. The pilot project in Bengbu City, Anhui Province has begun to take shape. There are 87 communities in Bengbu City that have been carrying out domestic waste sorting, logistics, property management, express delivery, advertising and community economic services, which have been promoted in nearly 20 sanitation facilities in Anhui, Shandong and Zhejiang. In 20 18, the daily processing scale of the company's domestic waste power generation project reached 34,700 tons, and the daily processing scale of the kitchen waste disposal project reached 25 15 tons. At the end of 20 18, the company signed a sanitation contract1437.9 billion yuan, which was 45.94% higher than the accumulated 31300 million yuan at the end of 20 17, and the sanitation orders increased rapidly.
Looking forward to the integration of Xiong' an resources and the joint development of strength and strength. On March 20th, 2022, Hebei xiong'an new area Management Committee, China Xiong 'an Group Co., Ltd., Tsinghua University, Tsinghua Holdings Co., Ltd. and Tiqi Holdings signed a cooperation framework agreement. After the cooperation, the funds controlled by Xiong 'an Group and/or xiong'an new area Management Committee, together with Tsinghua Holdings, became the largest shareholder of Tiqi Holdings. The modes of cooperation include but are not limited to the transfer of some shares to Tsinghua Holdings by the funds controlled by Xiong 'an Group and/or xiong'an new area Management Committee, and the capital increase by the funds controlled by Xiong 'an Group and/or xiong'an new area Management Committee to Tiki Holdings in cash and/or other non-monetary assets. As of the disclosure of the 20 18 annual report, the cooperation matters agreed in this agreement still need to be signed separately by the relevant parties. After the integration is completed, it is expected to achieve a win-win situation. Professional environmental protection companies promote environmental protection planning and construction in xiong'an new area, and high-quality projects in xiong'an new area are expected to improve the quantity and quality of the company's environmental protection orders.
The proposed convertible bonds are expected to receive financial support, and the assets of the Group will be injected as expected. The company announced that it plans to issue convertible bonds to raise no more than RMB 26,543.8+0.7 billion, which will be used for waste incineration projects such as Tianma Phase II, Wendeng in Weihai, Mengcheng and Lin Bao in Chengdu, as well as the recycling project of wet waste and construction waste in Songjiang, which is expected to bring financial support to the company's development. The company is the only environmental protection listing platform under the Shanghai Chengtou Group, and the assets of the group are expected to be injected. According to the announcement, Shanghai Chengtou promised to inject the environmental protection assets and businesses such as sewage and solid waste currently controlled by Shanghai Chengtou into the Shanghai environment within three years after the listing of Shanghai Environment at a reasonable valuation level in line with market practice, on the premise of obtaining policy permission, approval from the competent industry authorities and approval from Shanghai Environmental shareholders.
Investment suggestion: it is estimated that the EPS of the company from 2022 to 20021year will be 0.93 yuan, 1. 10 yuan,1./9 yuan respectively, and the corresponding PE will be 18.2x and/kloc-0. Maintain the investment rating of overweight -A, with a 6-month target price of 18 yuan.
Risk warning: the project progress is less than expected, and the policy changes are less than expected.
Yingfeng environment: the performance is in line with expectations, and Zhonglian environment is an important point of view.
Yingfeng environment 00967
Research Institute: Everbright Securities Analysts: Yin Zhongshu and Wang Wei Date of writing: April 22, 2022.
Event: The company released the annual report of 20 18, and realized the operating income of130.45 million yuan, with a year-on-year increase of 4,685,438+0%; The net profit of returning to the mother was 9.29 yuan, a year-on-year increase of 64.02%. The company released the 2022Q 1 Performance Express, achieving an operating income of 2.746 billion yuan, a year-on-year increase of 6. 19%, and a net profit of 237 million yuan, a year-on-year increase of 64.96%. (Year-on-year growth data are all adjusted data)
Zhonglian environment is the biggest bright spot, and its performance exceeds expectations. In 20 18, the listed company acquired the equity of Zhonglian Environment 100%; In 20 18, Zhonglian Environment realized an operating income of 802 10/00000 yuan, a year-on-year increase of 24.80%, and a net profit of1/730000 yuan, a year-on-year increase of 54.5%. According to the merger rules, the monthly net profit of Zhonglian Environment 201811is 865 million yuan, which is merged into 5 1%, that is, 44 1 ten thousand yuan; The net profit of 65438+February was completely consolidated, reaching 308 million yuan, and the total consolidated profit of Zhonglian Environment in 20 18 was 749 million yuan. The original assets of listed companies realized a net profit of 65.438+0.8 billion yuan. Compared with the 20 18-20 year non-net profit deduction promised in the profit forecast compensation agreement signed with the original shareholders during the merger and acquisition of Zhonglian Environment, it was 9.97/12.30/149,500 yuan, and Zhonglian Environment deducted 201.05 non-net profit.
The sanitation equipment market is growing steadily, and the company occupies a leading position. In 20 18, the company sold 22,700 sets of sanitation equipment, up 20% year-on-year, higher than the whole industry (the sales of sanitation equipment in the industry increased 17% year-on-year to 100700 sets). In 20 18, the company won the bid for 14 sanitation operation projects with a total contract value of about 8 billion yuan; In terms of gross profit margin, the overall sanitation equipment and services were 30.4 1%, an increase of 1.46 pct. We believe that the marketization of sanitation and the upgrading of rural sanitation and sanitation equipment can make the sanitation market grow steadily in the future. In the future, the company will still take sanitation equipment as its core competitiveness, expand the sanitation market and enhance the overall industrial chain. On the one hand, it maintains the company's absolute leading market position in the field of high-end sanitation equipment, on the other hand, it further conforms to the future development direction of intelligent manufacturing and establishes a more effective moat.