Event: the company achieved revenue of 3.834 billion yuan in the first half of 2021, a sharp increase of 100.50% over the same period last year, and its net profit was 415 million yuan, an increase of 25.66% over the same period last year. The increase in performance is due to the implementation of Accounting Standards for Enterprises interpretation No. 14, the recognition of 1.284 billion yuan in revenue for BOT projects under construction according to the progress of implementation and the commissioning of some new projects.
The operation project is moving forward steadily. The company operates 22 municipal solid waste incineration projects, totaling 4.3293 million tons of domestic waste, an increase of 27.70 percent over the same period last year, and the power consumption of garbage incineration is 1.3499948 billion kilowatt-hours, an increase of 30.89 percent over the same period last year. The company invests, constructs and operates two municipal solid waste landfill projects, and the landfill volume is 98200 tons. The year-on-year decline in landfill volume is due to the suspension of operation of Laogang Phase IV, Fenghua and Mengcheng landfill projects. The online power consumption of the Laogang biogas power generation project is 31.4807 million kilowatt-hours, which is due to the suspension of the operation of the Laogang Phase IV landfill project.
Continue to expand new projects. It has cumulatively undertaken more than 50 regional site investigation and assessment projects, contaminated sites and environmental restoration and business, and signed 147 new technical service contracts, including 5 professional planning for parks and sanitation, 8 third-party supervision projects, consulting and design, etc. The new projects cover 14 provinces, including Beijing-Tianjin-Hebei, Yangtze River Delta, Dawan area and Sichuan-Chongqing urban agglomeration, laying a solid foundation for Shanghai to promote the development of environmental protection industry in an all-round way.
Profit forecast and investment advice. The company is actively expanding the four emerging areas of hazardous medical waste, soil remediation, sludge disposal and solid waste resource. scientific and technological innovation continues and profitability continues to improve. It is estimated that the company's net profit from 2021 to 2023 is 7.33,8.46 and 923 million yuan respectively, an increase of 17.21%, 15.43% and 9.06% compared with the same period last year, respectively. Based on the closing price of 11.90 yuan on September 7, 2021, the company is given an investment rating of "recommended" corresponding to PE of 18.30,15.87 and 14.51 times.
Risk tips. The company's performance falls short of expectations, vicious market competition, systemic risks in domestic and foreign secondary markets, risk of worsening epidemic situation at home and abroad, and economic recovery at home and abroad is lower than expected.
