Benefit costs declined, net profit increased significantly in 2013
According to the company's annual report, operating income reached 1.96 billion yuan in 2013, an increase of 16.93% over the same period last year, and net profit was 40.099 million yuan, an increase of 111.1% over the same period last year. The market price of raw materials such as steel is relatively stable, and the gross profit margin increased by 0.22% over the same period last year. In terms of expenses, the company's sales expenses and management expenses kept pace with income; financial expenses decreased by 46.40% compared with the same period last year, mainly due to a reduction in borrowing and a corresponding reduction in interest expenses. The company's financial expenses were reduced by 24 million, which contributed greatly to the growth of net profit.
The dedusting transformation market is active, and the company's order situation is optimistic.
In 2013, the company's new orders exceeded 4 billion, an increase of 43.58% over the same period last year; among them, domestic new large units and renovation projects of 600000 kilowatts and above grew rapidly, with orders up 95% over the same period last year; foreign exports slowed down due to the impact of the European debt crisis, and export contracts decreased by 65%.
Thanks to the impact of the national macro policy on environmental control and the improvement of standards for pollution emission enterprises, coal-fired power plants ushered in the peak of dedusting transformation. At the two sessions, Premier Li Keqiang proposed to promote the dedusting transformation of coal-fired power plants this year by 180 million kilowatts. According to the conservative scale of 60 million investment in dedusting retrofit of million kilowatt units, the market space will exceed 10 billion. As the leader of the industry, the company closely follows the tilt of air pollution control policy and market demand, starting with environmental protection high-end equipment and transforming the market, the market share is expected to remain at about 35%. At the same time, the marketization of the company's new technology has achieved preliminary results. Electric condenser, rotating electrode electrostatic precipitator, low temperature electrostatic precipitator, wet electrostatic precipitator and other technologies have all won the demonstration project of 1000MW units, laying a good foundation for future development.
Join hands with Juhua to build a comprehensive environmental protection platform in Zhejiang Province
In early 2014, the company launched a private offering and planned to issue 63.1579 million shares, all of which were subscribed by Juhua Group in cash at an issue price of 19 yuan per share. After the completion of the issue, Juhua Group will become the controlling shareholder. Juhua Group, which belongs to the State-owned assets Supervision and Administration Commission of Zhejiang Province, is the largest chemical industry base in Zhejiang Province, covering chemical, environmental protection, public works and other fields. Through this issue, the actual controller of the company will be changed from Zhuji SASAC to Zhejiang SASAC. On the basis of the integration of the environmental protection industry under Juhua Group, and relying on the support of Juhua Group and Zhejiang State-owned assets Supervision and Administration Commission, the company will be based on the environmental protection industry, persist in refining and strengthening the high-end environmental protection equipment industry, and maintain its leading position in the field of atmospheric treatment. and take this additional issue as a starting point, business to sewage treatment and solid waste treatment and other areas. The company will usher in the combination of endogenous growth and extension expansion, continue to open up new profit growth points, broaden business areas, and strive to build a comprehensive environmental protection platform in Zhejiang Province covering air treatment, sewage treatment, solid waste treatment and soil treatment.
With Jutai and Qingtai as carriers, the new business of environmental protection has a bright future.
The company intends to raise no more than 1.2 billion yuan in this additional issue, which will be used for: 1, to acquire 100% equity in Jutai Company and Qingtai Company, a subsidiary of Juhua Group, at a price of 160 million yuan respectively; 2, to invest 480 million yuan in a new comprehensive utilization project of municipal solid waste and sludge incineration; 3, to supplement working capital.
The main business of Jutai Company is the comprehensive utilization of solid waste residue, and its organic sludge treatment equipment is the only fixed-point disposal equipment for sludge treatment in Quzhou sewage treatment Plant. Qingtai Company's main business is solid waste treatment and sewage treatment, is a pilot unit for monitoring the whole process of harmless centralized disposal of hazardous waste in Zhejiang Province, and has the largest industrial sewage treatment plant in western Zhejiang. In 2013, the combined revenue and net profit of the two companies were 191 million yuan and 3.48 million yuan, respectively.
The comprehensive utilization project of municipal solid waste and sludge incineration is the first phase of Quzhou municipal solid waste incineration power generation project, with a planned disposal scale of 1200 tons per day, with a total investment of 600 million yuan. Qingtai Company and Zhongke Industrial Group (Holdings) Co., Ltd. plan to jointly set up a project subsidiary, as the main body of cooperative project management, Qingtai Company accounts for 80%, and Zhongke Industrial Group (Holdings) Co., Ltd. accounts for 20%. It is expected that the project will be carried out in BOT mode and it is optimistically estimated that it will be put into operation next year. Jutai and Qingtai will become the platform for the company to carry out new environmental protection business in addition to dust removal equipment in the future. With the support of Jutai Group and Zhejiang State-owned assets Supervision and Administration Commission, the number of projects, processing scale, revenue and profitability will be increased rapidly.
SEO M & A progresses steadily, giving a "recommended" rating
The company's business goal in 2014: to achieve operating income of 2.45 billion yuan, operating cost of 2.05 billion yuan, three expenses to be controlled at 260 million yuan. According to the company's orders, we think that the above objectives are relatively conservative. The company joins hands with Juhua Group to create a large local environmental protection platform, which is expected to benefit significantly from government support in the future, and the business other than dust removal is expected to show explosive growth. Assuming that Jutai and Qingtai are merged from January 1, 2015, it is estimated that the company's EPS for 14-15 years will be 0.42 yuan and 0.68 yuan respectively, and the price-to-earnings ratio of the corresponding stock price will be 47 and 29 times respectively. The company's net profit is expected to maintain rapid growth in the next few years, easing valuation pressure. For the first time, the company was given a "recommended" rating.
Risk Tips:
1. The merger and acquisition of additional shares failed to proceed as scheduled. 2. The progress of the construction of the new project is not up to expectations.