New energy sanitation equipment leader, maintain "increase"
Yutong heavy Industry 1H22 realized revenue / return net profit of 1.608 million yuan, 27.9% of which was-12.6% compared with the same period last year.
The change in operating income is mainly due to the decline in the business income of construction machinery. The number of 1H22 risks on the company's new energy sanitation vehicles increased by 99.4% compared with the same period last year, maintaining the first place in the industry. the annual contract value of the new winning contract for the sanitation service project was 314 million yuan, an increase of 394% over the same period last year. Due to the lower sales volume of sanitation equipment than we expected, the intensified competition in the construction machinery industry, and the influence of repeated COVID-19 epidemic, we reduced the income of sanitation equipment and construction machinery, and then lowered the 22-24 net profit forecast for home return to 3.95 trillion yuan (previous value: 4.12 pound 490,000,000 yuan). Considering that the company's new energy sanitation business accounts for a high proportion of revenue, strong profitability, and new energy sanitation vehicle sales continue to lead the industry, 2022E 14.7x PE (comparable company Wind unanimously expects an average of 13.4x 2022E PE), with a target price of 10.58 yuan (previous value:
11.40 yuan, based on 2022E 15.0x PE), maintain "increase".
The sales volume of new energy sanitation equipment has increased rapidly, ranking first in the industry.
According to the retail data of Sinochem data Terminal, 44000 1H22 national sanitation vehicles were insured,-19.3 percent year on year, and 2037 new energy sanitation vehicles were sold, with a penetration rate of 4.6 percent, an increase of 2.4 percent over the same period last year. Yutong heavy Industry has focused on the R & D and production of new energy sanitation vehicles since 2017, and its sales are among the top three in China from 2017 to 2021. The company's 1H22 sanitation vehicles are insured 1912, an increase of 13.2% over the same period last year, ranking fourth in the industry and up 2 places over the same period last year. The number of new energy sanitation vehicles ranked first in the industry since 2014, an increase of 99.4% and a market share of 30.5%. We are optimistic that Yutong heavy Industry will continue to expand its competitive advantage under the wave of new sanitation energy by virtue of its excellent technology and quality control capabilities, strong sales and after-sales network.
Sanitation services continued high-quality growth. 1H22, the first company with operating scale in Henan Province, earned 319 million yuan in sanitation services, + 13.2% year on year. The operation of the project is mainly carried out by the subsidiary Aolande Environmental Technology Co., Ltd. (Aolande), covering road cleaning and cleaning, garbage collection and transportation, municipal facilities management and landscaping maintenance and other residential environment management services. 1H22 Aolan won the bid with an annual value of 314 million yuan, an increase of 394% over the same period last year. As of June 30, 2022, the annual amount of sanitation service projects in operation reached 881 million (including value-added tax), an increase of 31.5% over the same period last year, making it the largest sanitation service enterprise in Henan province.
Construction Machinery seeks New Energy Breakthrough
Affected by the decline of the domestic real estate industry, the slowdown of fixed asset investment and other factors, the cycle of the construction machinery industry has declined, and the company's product sales have been affected to a certain extent. 1H22's new energy rotary drilling products have made breakthroughs in many markets, and new energy mining vehicle layout exchange products and solutions have been sold in batches in many regions, initially leading the industry to develop towards new energy, and the product market reputation and influence have been further enhanced.
Risk hint: the sales demand of sanitation equipment is not as expected, the progress of sanitation marketization is not as expected, and the competition of sanitation operation is intensified.