Event: in 2021, the company achieved operating income of 22.233 billion yuan, an increase of 15.65% over the same period last year, a net profit of 2.287 billion yuan, an increase of 55.58% over the same period last year, and a net profit of 1.634 billion yuan, an increase of 19.52% over the same period last year.
Comments:
The strategy focuses on strengthening the main industry of environmental protection, and its performance has increased significantly. The company focuses on the environmental protection industry and continues to consolidate its position as the main business of environmental protection business. With the increase of solid waste disposal and water treatment capacity and the settlement of eco-environmental projects according to schedule, the water price adjustment of superimposed water treatment projects in some areas has been completed, and the performance has increased substantially. According to the company announcement, in 2021, the company will increase its water treatment capacity by about 146.04 million tons per day, and the construction and operation scale of the new waste incineration power generation project will be 4000 tons per day. By 2021, the company's water treatment capacity has reached 2500 million tons / day, the total design scale of garbage disposal capacity is about 1437 million tons / year, and the total design scale of dismantling electrical and electronic equipment is about 3.2 million pieces / year. In addition, the company's equity investment confirmed that the investment income is about 720 million yuan, including the joint venture GM pioneering water investment (cancelled) to transfer its 40% equity holding in Shenzhen water to Shenzhen Environmental Water Group and other matters to increase profits by 604 million yuan. To dispose of the subsidiary Jiujiang initial profit Pool increased profits by 116 million yuan, which greatly contributed to the substantial growth of the company's performance.
Lean operation + fine management, the company's operating efficiency and profitability have been steadily improved. The company continues to carry out fine management, focusing on the key links and elements of production and operation, strengthening capacity building, promoting the improvement of project operation efficiency, improving the quality and efficiency of stock projects, and significantly optimizing the operation of each segment of business stock projects. Thanks to the promotion of the company's "lean operation + fine management", as well as the increase in water treatment prices in some areas and the substantial increase in revenue from sewage treatment business with high gross profit margin, the company's profitability has improved steadily. In 2021, the company's gross profit margin, net profit margin and ROE were 30. 5% respectively.
82%, 11.70% and 8.60%, respectively, an increase of 2.15,0.88 and 3.37pct over the same period in 2020.
The resource reserve of the project is sufficient, and the future performance is expected to continue to grow steadily. In 2021, the company added a total of 74 new projects, with a contract size of 18.9 billion yuan. In terms of light asset projects, a total of 51 light asset projects were acquired in 2021, with a total contract size of 12 billion yuan, an increase of 122% over the same period last year. Among them, there are 31 urban water business acquisition projects and 9 eco-environmental business acquisition projects, with a contract size of 5 billion yuan and 6.7 billion yuan respectively. In terms of heavy asset projects, a total of 23 heavy asset projects were acquired in 2021, with a contract size of 6.9 billion yuan. Among them, 21 new urban water business projects were signed, with an amount of 5.3 billion yuan, with an additional water treatment capacity of 950,000 tons per day, and 2 incineration power generation projects with a treatment capacity of 4400 tons per day.
The "Ecology + 2025" strategic plan will be carried out in an orderly manner to promote the steady and sustainable development of the company. The company comprehensively upgrades the business portfolio of "water, solid, gas and energy". Based on the business layout of "water + solid waste", the company optimizes and determines the business portfolio of "540% 1". That is, urban water, solid waste treatment, atmospheric industry, ecological treatment, resources and energy five basic businesses, engineering technology, environmental protection equipment, intelligent environmental protection, asset management four value chain business, scientific and technological innovation 1 support business. Among them, the atmospheric industry and environmental protection equipment and other business development, the company is through the acquisition and integration of the first atmosphere, in order to complete the overall business layout of the company. Based on the advantages of past industries, the company will continue to expand its business areas, consolidate the company's market competitiveness and open up sources of performance, so as to ensure the sustained and steady development of the company in the future.
We will continue to promote the issuance of REITs, effectively invigorate existing assets and promote asset structure optimization. In 2021, the company launched the first water REIT successfully, which is the only one of the first pilot public offering REITs products based on sewage treatment infrastructure. The successful issuance of the company's REITs products will help the company to invigorate the existing assets, optimize the debt structure and reduce the financial risk. It is expected that in the future, the company will continue to promote the issuance of REITs products in the stock of water assets, further invigorate the existing assets, form a virtuous circle of investment, and help the company continue to develop steadily.
Maintain the "buy" rating: with the steady progress of the company's water business and the rapid development of solid waste business, the company's sustained growth has been guaranteed, and the issuance of REITs will effectively invigorate the existing assets, the company's valuation is expected to increase, optimistic about the company's future growth. It is estimated that the company's revenue from 2022 to 2024 will be 262.96 yuan, 300.54 yuan and 35.584 billion yuan respectively, an increase of 18.28%, 14.29% and 18.40% respectively over the same period last year. Taking into account the stabilization of the company's business development and gross profit margin, it is estimated that the net profit from 2022 to 2024 will be 24.12,28.22 and 3.341 billion yuan respectively (25.46 yuan and 3.099 billion yuan before adjustment), an increase of 11.32%, 21.71% and 21.66% respectively over the same period last year.
The EPS was 0.35,0.42,0.51 yuan respectively, and the corresponding PE was 9.4,7.7,6.3 times, respectively.
Risk tips: policy promotion is not as expected, macro-economy is falling faster than expected, market competition is intensified, and the progress of project promotion is not as expected.