Events:
In the first three quarters of 2018, the company achieved operating income of 612 million yuan, an increase of 29.85% over the same period last year, a net profit of 98 million yuan for shareholders of listed companies, an increase of 23.86% over the same period last year, and a net profit of 74 million yuan for shareholders of listed companies, an increase of 16.09% over the same period last year.
Comments:
The growth of the results in the three quarters is in line with expectations, and the solid waste business is growing rapidly.
In the first three quarters of 2018, the company achieved operating income of 612 million yuan, an increase of 29.85% over the same period last year, a net profit of 98 million yuan for shareholders of listed companies, an increase of 23.86% over the same period last year, and a net profit of 74 million yuan for non-listed companies, an increase of 16.09% over the same period last year. The company's performance grew steadily in the first three quarters, in line with expectations. From the perspective of revenue, the company's performance growth is mainly due to the rapid growth of solid waste business. During the reporting period, the Changshu municipal sludge 300000 tons / year project is now in trial operation; Zhenjiang sludge coupling power generation project has been successfully put into operation; Xuzhou Huaxin sludge coupling power generation project has entered the trial operation stage; Xuzhou China Resources Power Holdings sludge coupling power generation project has entered the trial operation stage. The Zhumadian sludge coupling power generation project has entered the trial operation stage, the Nanjing Chemical Industry Park sludge coupling power generation project is in the equipment commissioning stage, and the Nanjing (China Resources thermoelectric) sludge coupling power generation project is in the early stage of the project. Jiangyin sludge coupling power generation project is in the early stage of the project. Tomorrow, the company will have a large-scale operation of the sludge coupling project, and the total revenue is expected to be more than 40 million.
Sewage treatment growth is expected to be strong
This year, 294 million of the new water environment treatment contracts have unrecognized revenue of 1.183 billion yuan, mainly driven by municipal sewage treatment and power plant overhaul and renovation projects. The company has been ploughing deeply in the electric power field for many years and understands the water treatment system of the power plant. at present, the most built power plant in 2008 is in the ten-year overhaul period, and the water system has a demand for overhaul. the company has a good performance in water treatment in the electricity market and has a strong ability to take orders. In recent years, Jiangsu Province has begun to treat desulphurization wastewater from power plants. The company is familiar with power plant flue gas treatment and has corresponding engineering experience. It is expected that some gains have been made in the zero discharge plate of desulfurization wastewater.
Conclusion:
We estimate that the company's main income from 2018 to 2020 is 795 million yuan, 936 million yuan and 1.124 billion yuan respectively, and the return net profit is 159 million yuan, 171 million yuan and 181 million yuan respectively, the corresponding EPS is 0.31,0.34 yuan and 0.36 yuan respectively, and the corresponding PE is 18 times, 17 times and 16 times respectively.
Risk Tips:
The project operation lags behind; the acceptance of water treatment orders is not up to expectations.