Core ideas:
Event: Qingxin released its three-quarter report in 2022, with revenue of 5.471 billion yuan in the first three quarters, an increase of 46.77% over the same period last year, and a net profit of 369 million yuan (deducting 345 million yuan), an increase of 6.20% over the same period last year (33.15%).
Q3 maintained business growth and cash flow improved significantly in the single quarter. Q3 achieved an operating income of 1.671 billion yuan in a single quarter, an increase of 0.20% over the same period last year, and a net profit of 106 million yuan, an increase of 10.53% over the same period last year. In the first three quarters, the gross profit margin was 19.78%, down 3.97 pct from the same period last year; the net profit margin was 7.90%, a decrease in 2.08pct compared with the same period last year. Rising raw material prices and labor costs have led to a decline in the company's profitability. During the reporting period, the net cash flow of operating activities was 464 million yuan, a substantial increase of 94.61% over the same period last year. The company actively promoted the recovery of accounts receivable and the increase in government subsidies, and sufficient cash flow ensured the company's continued and stable operation.
Deep ploughing flue gas treatment for many years is expected to fully benefit from the acceleration of thermal power investment. Recently, the approval of thermal power projects has accelerated significantly. In the first three quarters of 2022, national thermal power infrastructure investment totaled 54.7 billion yuan, an increase of 47.5% over the same period last year. The company has been ploughing in the field of flue gas treatment for many years, and has fully independent intellectual property rights for large-scale flue gas treatment technology. It is the first batch of units to participate in the practice of third-party treatment of flue gas environmental protection, including desulphurization, denitrification and dust removal BOT franchise and engineering service business in electric power, iron and steel, cement and other industries. By the end of June, the company has cumulatively undertaken coal-fired units of thermal power projects with a capacity of more than 296 million kilowatts and 1114 units, operating 16 franchise projects such as desulphurization and denitrification, with a total installed capacity of 15200MW, which has been in the forefront of the industry for many years; the total capacity of small boilers exceeds 120000 tons per hour, and the total capacity of iron and steel exceeds 7160 tons. The company's flue gas management business is expected to fully benefit from the acceleration of thermal power investment by virtue of its advanced technical level and rich operational experience.
Lead the waste heat power generation industry and actively expand the field of energy-saving services. Fresh environment in "double carbon"
Under the policy background, we will actively carry out industrial energy conservation, park energy comprehensive services, and new energy power engineering services. In May this year, the company in Pingyin, Shandong Province, Fengyuan carbon "waste heat power generation + environmental protection"
The integration project was successfully connected to the grid, successfully completed and operated. At present, the company has 17 waste heat power generation projects in the fields of cement, building materials, ferroalloy and carbon, with a total installed capacity of 179.5MW, which is in a leading position in the industry, and actively expand energy-saving services in the cement and glass industries.
Continuous layout of hazardous waste business, and gradually form a complete treatment system. The company has carried out comprehensive utilization of waste resources in coal chemical industry, industrial solid waste and other industries. Key projects include Chifeng Boyuan coal tar hydrogenation, Sichuan Ya'an comprehensive waste disposal, Dazhou hazardous waste comprehensive disposal, Xinjiang Jinpai solid waste comprehensive disposal, Xuancheng Fuwang metal material recovery and so on. Xuancheng Fuwang Company, which newly joined in May, is backed by the concentrated waste production area of the Yangtze River Delta, focusing on the resource recovery of copper and rare and precious metals in industrial hazardous waste. At present, the company has business experience in market expansion, project construction, operation and management in the field of comprehensive disposal and utilization of hazardous wastes, and gradually forms a complete treatment system with the combination of storage, disposal and resource utilization.
Investment suggestion: it is estimated that the net return profit of the company will be 635, 0.32, 973 million, 0.45, 0.59 and 12x/9x/7.8x respectively in 2022, 2023, 2024, respectively, and the corresponding EPS is 0.45, 0.59 and 12x/9x/7.8x, respectively. Maintain the recommended rating.
Risk hints: the risk that the project production schedule is not as expected; the risk that the epidemic leads to the slowdown of production and operation; the risk of industry policy change; the risk of intensified competition in the industry.