High Energy Environment (603588) 2019 Interim Report Review: Environmental Remediation and Waste Incineration Business Performs Brightly, Cash Flow Improves Significantly

High Energy Environment (603588) 2019 Interim Report Review: Environmental Remediation and Waste Incineration Business Performs Brightly, Cash Flow Improves Significantly
Dynamic events The company released the 2019 interim report, and the company achieved operating income of 20 in 2019H1.8.1 billion, an annual increase of 51.04%; net profit attributable to mother 2.50,000 yuan, an increase of 35 in ten years.07%; net profit deducted from non-attributed mothers2.00 ppm, an increase of 31 per year.95%. The company commented on soil remediation, and the waste incineration business increased rapidly. The company had too many orders in hand, and the company’s environmental remediation business 2019H1 achieved revenue6.78 ppm, an increase of 41 in ten years.19%, the progress of the incorporation of multiple soil remediation and groundwater remediation projects progressed, releasing results.The company’s waste incineration business increased rapidly, and the domestic waste treatment and disposal segment realized revenue7.76 ppm, an 都市夜网 increase of 144 in ten years.66%, mainly benefiting from the increase in investment projects entering the construction period, and the company accelerated the construction progress of investment projects in hand, especially waste incineration projects. The company has an order of 134 in hand.90 ppm, an increase of 22 in ten years.66%, of which 34 have been budgeted.9.5 billion, with a budget of 102.6.6 billion.New orders in the first half of 201917.8 billion yuan, of which environmental repair supplementary orders6.150,000 yuan, supplementary orders for domestic waste treatment and disposal business7.610,000 yuan, new orders for general industrial solid waste business2.7.5 billion.The company’s operating business involves hazardous waste treatment operations, waste incineration power plants, waste landfill operations, sewage treatment operations, etc., and operating income in 2019H14.2000000000.The company has sufficient orders in hand, orderly expansion of projects, incineration of waste, substantial growth in soil remediation business, and thickening of operating assets, which are expected to support the company’s continued high growth. Gross profit margin decreased, expenses were well controlled, and net profit margin decreased. The company’s overall gross profit margin for 2019H1 was 22.63%, down 8 from last year.3pct, net interest rate is 11.07%, down 2 every year.67 only.Company selling expenses 1.57%, a decrease of 0 every year.96 points; the management expense ratio (according to the R & D expenses added) is 7.95%, falling by 2 every year.54pct; financial expenses are affected by the increase in bonds payable and bank loans, and corresponding accrual of interest expenses, financial expenses2.80%, rising by 0 every year.15 marks.Overall, the expense ratio was well controlled during the period. Receivables are well received. Cash flow from operating activities has significantly improved the company’s risk prevention management of receivables, improved order quality, and increased the collection of receivables. The company’s receivables were good in the first half.The account receivables / revenue ratio of the company in 2019H1 is 26.45%, down 13.46 points.In the first half of 2019, the company’s net cash flow from operating activities was 1.32 ppm, an increase of 115 in ten years.98% cash flow improved significantly. Risk factors Market competition leads to a reduction in gross profit margin and the project progress is not up to the expected risk. Investment suggestion: Maintain “Overweight” rating in the next six months. We predict that the net profit attributable to the parent company from 2019 to 2021 will be 4 respectively.5.1 billion, 5.6.5 billion, 7.32 ppm, an increase of 38 in ten years.79%, 25.39%, 29.48%, with a corresponding return of 0.67 yuan, 0.84 yuan, 1.09 yuan, corresponding to a dynamic market surplus of 15.00 times, 11.97 times, 9.24 times.The company has sufficient orders in hand, strong ability to take orders, continuous increase in operating assets, and significant improvement in cash flow. The company’s main business replaces the more prosperous sub-sectors. The environmental repair and waste incineration business has performed well and is optimistic about its performance.High growth, maintaining the company’s “overweight” rating.

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