Net profit fell 23% after deducting factors such as securities investment
The company achieved operating income of 3,536 million yuan in 2015, an increase of 1.49% over the previous year; net profit attributable to the parent company was 287 million yuan, an increase of 23.4% over the previous year. Taking into account a 15-year reduction in holdings of Southwest Securities, which increased profits by 165 million yuan; after deducting this factor, the company's non-net profit after deducting this factor was 169 million yuan, a year-on-year decrease of 23%.
The installed capacity of the franchise has increased dramatically, and the denitrification catalyst business has seriously shrunk
By business, the environmental protection project completed 91 units of desulfurization and denitrification in 15 years (down 35%), with revenue of 2,097 billion yuan (down 12.8%) and total profit of 53.02 million yuan (down 35.4%); in the franchise business, benefiting from previous asset injections, revenue of 1,431 billion yuan (increase of 30%) in 2015, and total profit of 284 million yuan (increase of 72.6%), but the decline in utilization hours and rising environmental costs may lead to a decline in stock franchise asset profits; the denitrification catalyst business is affected by factors such as falling demand and increased competition, 15 Annual revenue was 264 million yuan (down 69.4%), and net profit was 2002 million yuan (down 90%).
Acquire Jiangsu Ziguang to improve the flue gas treatment industry chain and quickly lay out the fields of wastewater, hazardous waste, and monitoring
The company acquired 51% of Jiangsu Ziguang's shares and quickly entered the field of dust collector manufacturing to provide customers with integrated flue gas treatment services for desulfurization, denitrification and dust removal. In addition, the company has successively laid out fields such as water, hazardous waste, and smart monitoring: in terms of sewage disposal, the company has signed contracts for projects such as Chaoyang, Lingyuan, and Beipiao; in terms of hazardous waste, on the basis of existing nuclear waste disposal business, the company has carried out industrial hazardous waste projects through equity cooperation with Xinzhongtian Environmental Protection; in terms of monitoring, it has jointly established the Chongqing Smart Environmental IoT Big Data Company with various companies to lay out the local smart monitoring market.
The majority shareholders are optimistic about future performance by increasing their holdings, and new business brings growth points
It is estimated that the company's EPS in 16-18 will be 0.42, 0.49, and 0.51 yuan, respectively. The company is the only environmental protection platform under China Power Investment Group. Taking advantage of the advantages of controlling shareholders, the franchise business is expected to grow steadily over a long period of time; with the promotion of ultra-clean emissions, demand for transformation such as desulfurization, denitrification, and dust removal is expected to support the steady growth of the company's traditional business. At the same time, the company's layout of wastewater, hazardous waste, and monitoring is expected to bring new performance growth points. Give it a “buy” rating.
Risk Warning: New business development falls short of expectations, demand for desulfurization, denitrification transformation declines