Revenue and net profit increased sharply. The company achieved a total revenue of 14.14 billion yuan (yoy+69.4%) in 2021. Of this total, hazardous waste disposal and resource products reached 13.12 billion yuan (yoy+78.3%), mainly due to increased production capacity of hazardous waste harmless treatment and recycling of renewable resources; clean energy equipment reached 910 million yuan (yoy+0.8%); and oil extraction reached 20 million yuan (yoy+83.3%). In 2021, the net profit of returning home is 2.31 billion yuan (yoy+69.7%). 2021Q4 achieved a revenue of 3.58 billion yuan (yoy-0.5%) in a single quarter and a net profit of 440 million yuan (yoy-31.4%). In 2022, Q1 realized revenue of 3.8 billion yuan (yoy+26.8%) and net profit of 400 million yuan (yoy-28.5%).
Gross profit margin goes down and costs go up. The company's net interest rate in 2021 was 16.4% (yoy-0.1pct) and the consolidated gross profit margin was 22.9% (yoy-4.9pct). Of these, the gross profit margin of hazardous waste disposal and resource utilization is 21.6% (yoy-6.0pct); the gross profit margin of clean energy equipment is 37.9% (yoy+9.8pct); and the gross profit margin of oil extraction is-1.9% (yoy+75.9pct). The sales / management / finance / R & D expense rates are 0.3%, 3.1%, 1.6%, 4.8% (yoy-0.1pct/-0.9pct/-0.1pct/+0.8pct), respectively. The large increase in management / R & D rates is mainly due to the combined effects of employee salary, depreciation and amortization / direct input, and the increase in employee salary. Net cash flow from operating activities-50 million yuan (yoy+61.5%), mainly due to the increase in cash / taxes / futures contract margin received from the sale of goods / services.
The layout is dangerous and the whole industrial chain is in danger, and the production capacity under construction is sufficient. Zhejiang Fu distributes the whole industrial chain of hazardous waste, covering from the front-end "collection-storage-harmless comprehensive treatment" to the back-end comprehensive recovery of polymetallic deep processing resources, and its production capacity has increased from 51.0 million tons / year at the end of 2019 to 177.8 million tons / year at the end of 2021, ranking first in the industry. The company is also successively landing front-end projects for hazardous waste disposal, including Chenzhou, Hunan (370000 tons), Dalian, Liaoning (300000 tons), and Deyang, Sichuan (300000 tons), with a total production capacity of 2.75 million tons. By the end of 2021, the total production capacity ranks first in the industry. In addition, the company carries out buybacks for employee stock ownership or equity incentive plans, deeply binding the interests of senior managers and core technical backbone, and contributing to the long-term development of the company.
Profit forecast. After the completion of the reorganization, the company has formed a dangerous waste leading enterprise with the layout of the whole industry chain, with advanced technology, strong ability of enrichment and recovery of small metals, and obvious geographical advantages in capacity layout. In the past two years, the production capacity has been concentrated and released, under the background of strict environmental supervision and inspection, the future development is worth looking forward to. It is estimated that the net profit of homing from 2022 to 2024 is 2.64 billion yuan and the EPS is 0.490.57 and 0.67 respectively. The corresponding PE is 9.1X/7.8X/6.7X. In addition, the company's traditional main business in the context of infrastructure development, hope to usher in new opportunities to maintain the "buy" rating.
Risk hint: the macroeconomic downturn affects the supply of raw materials; the progress of production is not as expected.