Core viewpoints
After more than ten years of operation, the company has constructed a trinity business system of "environmental protection equipment R & D and manufacturing, environmental protection engineering construction and environmental protection project operation". The company's equipment manufacturing business has been selected into the new list of national specialists, with sufficient engineering orders on hand, and actively expand the operation business of environmental protection water, garbage incineration, solid waste treatment and so on. The company issued an equity incentive plan in 2022 to enhance the stability of the management team and core technical business personnel, while demonstrating the company's confidence in future development. We predict that the company will achieve a net profit of 216 million yuan, 264 million yuan and 297 million yuan respectively in 2022-2024, covering it for the first time and giving it an "overweight" rating.
Deep ploughing environmental governance industry for more than ten years, the construction of a trinity business system Tianyuan environmental protection deep ploughing environmental governance industry for more than ten years, after years of technical precipitation and project implementation experience accumulation, has constructed a "environmental protection equipment R & D and manufacturing, environmental protection engineering construction, environmental protection project operation" trinity business system. At the same time, the company actively develops new business areas, creates integrated services of the whole industry chain, and actively arranges projects in urban water supply, waste incineration power generation, solid waste treatment and other fields, so as to create more growth points for the company.
Accelerate the layout of comprehensive water environment treatment, develop diversified project models the company ploughed landfill leachate treatment industry for more than ten years, has established a leading position in the field of domestic leachate treatment. In recent years, the company continues to expand its business scale and speed up the layout of comprehensive water environment treatment, and the business field is gradually extended to kitchen biogas liquid, washing wastewater from sanitation facilities, highly difficult industrial sewage, circulating sewage from power plants, etc., and the proportion of revenue from difficult sewage and other water business is increasing year by year. In August 2022, the company signed a framework agreement on semiconductor wastewater treatment services with Konka Optoelectronic Technology Research Institute to further expand the company's sewage treatment business. The company has won many major projects throughout the year, and the current project reserves are rich, which can effectively ensure the stable growth of future performance.
Selected into the national specialty special new small giant, to build equipment manufacturing advantage business companies adhere to scientific and technological innovation to drive business development, increasing R & D expenses year by year. Through the accumulation of more than ten years, we have independently developed 8 core technologies and 44 patents. The company continues to expand the environmental protection market with technological advantages, to provide technical services to derive potential customers, and to support a unique competitive advantage. In August this year, the company was selected into the national "fourth batch of specialized new 'Little Giant' enterprise publicity list", the company's technical strength has been concentrated.
Actively cut into solid waste treatment, there is a broad space for the development of environmental protection energy.
The company takes the initiative to cut into solid waste treatment, the layout of waste incineration power generation, sludge disposal, wet waste disposal and other plates. The company has sufficient orders for waste incineration, sludge disposal has its own efficient drying technology, wet waste disposal can form a good synergy with water business. Solid waste treatment is expected to help the company's high-quality sustainable development as a new kinetic energy, bringing a broad space for business expansion, transformation and upgrading for the company.
Profit forecast and investment rating:
We predict that the company will achieve operating income of 1.09 billion yuan, 1.388 billion yuan and 1.677 billion yuan respectively from 2022 to 2024, and realize net profit of 216 million yuan, 264 million yuan and 297 million yuan respectively, corresponding to EPS of 0.52,0.63 yuan and 0.71 yuan per share respectively.
Risk hints: the risk of slowing down the demand for leachate disposal; the risk that the demand for environmental protection equipment is not growing as expected; and the risk that the expansion of waste incineration projects is not as expected.