Sales of sanitation equipment declined compared with the same period last year, and the company's performance was under pressure.
1H22 Yingfeng achieved revenue / return net profit of 5669 million yuan, compared with the same period last year, accounting for 39.6% of Huatai's annual forecast value, 37.1% of Huatai's forecast value, respectively. 2Q22 realized revenue / return net profit of RMB 2846 million, year-on-year + 5.0% amp 16.6%. In the first half of the year, the sales volume of the sanitation equipment industry declined, the market competition in the sanitation service industry intensified, the growth rate of the company's sanitation equipment income and the annual amount of new contracts for sanitation services were lower than we expected, and the performance was under short-term pressure. We downgrade 22-24 EPS to 0.25 Wind 0.29 PE 0.33 yuan, taking into account the company's leading position in sanitation equipment, "sanitation equipment + sanitation services" integration advantage is significant, given 22 years 23.7x PE (comparable company Wind consensus forecast PE average 18.2x), target price 5.93 yuan (previous value: 5.32 yuan, based on 22 years 19x PE), maintain the "buy" rating.
The sales volume of sanitation equipment declined, and the growth of income driven by the volume of new energy equipment was affected by the economic situation at home and abroad and the long-term repetition of the epidemic situation. The market demand for traditional sanitation equipment was weak in the first half of the year, and the sales volume of national sanitation equipment showed a downward trend compared with the same period last year. According to the traffic insurance data of the Bancassurance Regulatory Commission, the total sales of sanitation vehicles in China in the first half of the year were 44397,-18.9% last year, of which 2146 new energy sanitation vehicles were sold, + 75.0% compared with the same period last year, and the new energy penetration rate was + 2.2pct to 4.8% compared with the same period last year. The company sold 7080 units of sanitation equipment in the first half of the year,-13.2% year-on-year, but sold 599 new energy equipment, + 184% year-on-year, far exceeding the growth rate of the industry. The company's sales of sanitation equipment and new energy equipment are firmly ranked first in the industry, and the gross profit margin of sanitation equipment is from + 1.0pct to 25.9% compared with the same period last year. Benefiting from the new energy trend of sanitation equipment, the new energy equipment business is expected to continue to drive the company's performance growth.
There has been a high increase in sanitation service revenue, and the first newly signed projects in the newly signed contract amount have been put into operation one after another, driving the 1H22 sanitation service revenue from + 40.6% to 1.902 billion yuan year-on-year, and the gross profit margin from-0.3pct to 18.3% year-on-year. According to the data of the Department of the Environment, the total amount of new contracts for sanitation services in China in the first half of the year was 108.1 billion yuan (+ 10.4% compared with the same period last year), and the new annual contract amount was 37.8 billion yuan (+ 12.2% compared with the same period last year). In the first half of the year, the company signed a total of 45 sanitation service projects, covering 17 provinces across the country, with a total new contract amount of 5.6 billion yuan, an annual contract amount of 1.002 billion yuan, ranking first in the industry, and an annual contract amount of 4.868 billion yuan in hand. Sustainable management ability ranks among the best.
The company constructs "operation mechanization + operation intelligence + service standardization" operation ecology, the industry position continues to lead, and the performance is expected to achieve steady growth.
Target price 5.93 yuan, maintain the "buy" rating
We reduce the 22-24 net profit of homing to 800 pesetas, 930,051 million yuan (previous value:
8.77 23.7xPE 10.50 Wind 1.266 billion yuan), corresponding to 0.25Universe 0.29 PE 0.33 yuan, considering the company's leading position in sanitation equipment, the integration advantage of "sanitation equipment + sanitation service" is significant, given 22-year 23.7xPE (comparable company Wind consensus expected PE average 18.2x), target price 5.93 yuan (previous value: 5.32 yuan, based on 22 years 19x PE), maintain "buy" rating.
Risk hint: the sales demand of sanitation equipment is not as expected, and the progress of sanitation marketization is not as expected.