Tax incentives affect short-term performance, and order release guarantees continued growth. According to the company's semi-annual report for 2021, the operating income of 2019H1 and 2021H1 respectively achieved 994 million yuan and 1.551 billion yuan respectively, and the net profit returned to the mother was 0.61 billion yuan and 1.86 billion yuan respectively. Among them, the epidemic tax preference thickened the performance in the first half of 2020, which put pressure on the company's year-on-year growth rate in the first half of 2021, but the compound growth rate of 2019H1 to 2021H company's parent net profit can reach 57%, and the long-term growth under the release of orders is still outstanding.
In addition, the company's 2021H1 realized net operating cash flow of 204 million yuan (year-on-year + 34.74%).
The operating income of sanitation increased by 7.56% compared with the same period last year, and the newly won bid in the first half of the year ranked first in the country. In the first half of the year, the company realized 1.514 billion yuan in urban and rural sanitation and cleaning income (+ 7.56% compared with the same period last year, an increase of 58.40% over H1 in 2019), with a gross profit margin of 24.73%, an increase of 6.94 pct over the same period in 2019. In the first half of 2021, the company signed about 26 sanitation service projects, with an additional bid-winning amount of 8.602 billion yuan, ranking first in the country in the first half of the year, demonstrating the competitiveness of outstanding orders.
Take the lead in the layout of the "city butler", management optimization and intelligence to increase the vitality of the enterprise. As the forerunner of the "city butler" model, the company successively won the bid "2.6 billion Lixin Project", "2.9 billion Lichuan Project" and "1.4 billion Hohhot Project" in the first half of the year. The winning bid of a large order in the field of urban services is an important achievement of the company's extended sanitation layout. Relying on the accumulation of sanitation business resources to enter the "big municipal" operation has achieved remarkable results, and is expected to usher in the order harvest period. In addition, in the first half of the year, the company launched a full-staff effectiveness assessment, promoted the city manager system to optimize corporate governance, and accelerated cost reduction and efficiency; the first-class road mechanization rate of the company has reached 100%, and intelligence and mechanization accelerate the stacking of superior barriers.
Profit forecast and investment rating: the city butler has a significant advantage and maintains a "buy" rating. It is estimated that the EPS of the company in 2021-2023 will be 0.82 Universe 1.04 Plus 1.31 yuan per share respectively, and the PE in 2021-2023 corresponding to the latest closing price will be 19.4 Universe 15.3 Plus 12.1 times, respectively, with a high growth rate of sanitation faucet.
Combined with the valuation level of the comparable company and the growth rate of the company's performance, the company is valued at 25 times PE in 2021, corresponding to a reasonable value of 20.47 yuan per share, maintaining a "buy" rating.
Risk tips. The pressure of rising labor costs; it is difficult to recover the risk of accounts receivable in time.