Weiming Environmental Protection (603568)-Steady growth in operating and accelerating orders and expected growth

Weiming Environmental Protection (603568)-Steady growth in operating and accelerating orders and expected growth

Cangnan project put into operation + high 佛山桑拿网 equipment growth, net profit increased by 46% in 18 years. The company released its 2018 annual report, and its revenue in 2018 was 15.

470,000 yuan, an increase of 50% in ten years; net profit attributable to mother 7.

400 million, an annual increase of 46%.

The performance growth was mainly: 1. The formal operation of the Cangnan Project at the beginning of 2018 brought an increase in the amount of waste disposal and online power generation, and an increase in the amount of waste disposal and online power generation in 2018.

59%, 14.

96%.

2. Company equipment income 5.

50,000 yuan, an increase of 264% in ten years.

In 2018, the company’s on-grid electricity per ton was 304 kWh, surpassing 1 kWh.

The gross profit margin decreased slightly, and the expense ratio continued to decrease during the period. In 2018, 天津夜网 the gross profit margin of various business segments of the company increased to varying degrees, and waste incineration increased by 2.

8pct, equipment upgrade 2.

4pct, but equipment gross profit margin of 48% was 67% of waste incineration and equipment revenue growth rate is high, the overall gross profit margin fell by 1pct to 60%.

The company’s expenses are better controlled. Sales expenses / administrative expenses / financial expenses increase by 39% / 4% /-4% per year, and the expense ratio during the period is 8.

9%, down 4 each year.

7 points.

Due to the newly commissioned projects of Jiashan, Longwan, Cangnan Weiming, etc., which were not included in the catalogue, supplements were generated. The company’s receivables increased by 48%, and cash flow from operating activities increased by only 12%.

In the new year, the single order and commissioning maintained rapid growth. At the end of 2018, the company put into production projects1.

36 yen / day, an increase of 0 in ten years.

28 ounces / day, an increase of 26%.

In 2018, the company added 0 new orders.

62 announcements / day, the company’s supplementary orders 0 to 2019.

36 daily / day, supplementary orders continue to maintain a high level.

According to the company’s plan, in 2019, the scale of grid-connected power generation will increase by about 3,400 tons / day, the volume of waste disposal will increase by 25%, and the amount of on-grid electricity will increase by 24%.

High-quality waste incineration operating company with steady growth in performance. It is expected that the company’s net profit attributable to its mother in 2019-2021 will be 9 respectively.

1/11.

5/13.

500 million US dollars, corresponding to 21 times the PE in 2019.

The company is a high-quality waste incineration operating company with stable performance growth, better cash flow, and strong profitability. The ROE was 24% in 2018. The company completed it in December 2018.

The issuance of 7 trillion convertible corporate bonds helped the company grow. Considering the ROE level of the company instead of its peers, it gave the company 25 times PE in 2019 with a reasonable value of 33.

0 yuan / share, give a buy rating.

Risk reminder: Compression incineration project puts into operation longer than expected; restaurant, sanitation and other projects expand beyond expectations; risks of change in on-grid electricity price compensation policy for waste incineration