Main points:
The performance is in line with expectations.
In the first half of 2015, the company achieved revenue of 960 million yuan, an increase of 68.48 percent over the same period last year, a net profit of 210 million yuan, an increase of 55.81 percent over the same period last year, and basic earnings per share of 0.19 yuan per share, an increase of 58.33 percent over the same period last year.
The revenue of the construction business has increased significantly, and the growth rate of the operating business has been stable.
The company's revenue growth in the current period is mainly due to the growth of the construction business, which increased by 142.80% compared with the same period last year. The operating project grew steadily due to the merger of the two projects of Datang Wusha Mountain in Zhejiang and Shizhu Tuo in Chongqing, with an increase of 25.19% over the same period last year. In the first half of the year, the company's gross profit margin was 34.98%, an increase of 0.73% over the same period last year. Mainly due to the increase in the gross profit margin of the construction business, the gross profit margin of the construction business increased by 10.93% over the same period last year.
Integrated technology to enhance the company's market expansion, a large number of orders on hand to ensure the future development of the company.
In terms of operating projects, the company so far has desulphurization operating assets 11340MW, denitrification operating assets 4140MW, business revenue accounts for nearly 50% of total revenue. In addition, the company won the bid in June in Shanxi Pingshuo Coal gangue Power Plant 600MW unit flue gas desulfurization and dust removal ultra-low emission transformation BOT project. Due to the good quality of the assets raised in the early stage and the large amount of electricity on the Internet, the gross profit margin of the company's operating projects is kept at more than 40% all the year round, which is higher than that of other listed companies (the gross profit margins of the environmental protection operation projects of CLP Yuanda and Yongqing are all below 20%). Coupled with the subsequent acquisition of more assets, laying the foundation for the company's long-term sustainable development.
In terms of construction projects, with the enhanced market expansion ability of SPC-3D technology, the company signed 28 new engineering orders in the first half of 2015, of which 19 used SPC-3D technology, 24 power plant engineering orders were listed, the installed capacity was 27170MW, and the remaining 4 were boiler engineering orders. Coupled with the additional construction projects of 6220MW in 2014 and more than 10 construction projects signed in 13 years, there are still some unrecognized revenues. Coupled with the company's construction gross profit margin has been rising since 2015, a large number of new construction orders and pre-order performance is expected to continue to release performance in 2012-2016, providing a good guarantee for the company's performance growth in the past two years.
Horizontal and vertical strategic layout of the company's new business.
Horizontally, (1) the establishment of a wholly-owned subsidiary Guodian fresh and energy-saving, used to develop energy-saving investment project management business. (2) to acquire 65.99% of the shares of Huaqing in Central to strengthen the service capacity of technologies in the field of energy conservation such as flue gas waste heat recovery. (3) the company enters the thermal power market through the urban heating BOT project in Junan County, Linyi City, Shandong Province, with an effective operating period of 30 years and a normal year income of 110 million yuan.
In terms of vertical development, (1) the company extends the upstream active coke industry chain of its unique active coke dry flue gas desulfurization technology through the establishment of holding subsidiaries Kang Rui Xinyuan and Xilin Xinkang. (2) the acquisition of Chifeng Boyuan extends downstream to the deep processing of industrial by-products and the comprehensive utilization of resources. Its coal tar lightweight project is expected to be completed in 2014, and the revenue of the first phase is expected to reach 690 million yuan per year. It can contribute up to 5600 million yuan / year in net profit. (3) the company sets up a wholly-owned subsidiary SPC Europe in the Republic of Poland as a starting point to use international market resources to enter the international business market. (4) the company pays attention to the R & D capability of the main business technology, and successfully develops the single-tower integrated desulphurization and dust removal purification technology ("SPC-3D"), which realizes the special emission limit of sulfur dioxide and soot and the integrated solution of deep purification. In order to expand the international market, the company has applied for PCT patent for the single-tower integrated technology. The integration technology will enhance the market competitiveness of the company. 19 of the 28 new orders signed by the company will use the integration technology.
Be optimistic about the company's market expansion ability in the future.
In terms of construction business, although the construction / transformation of desulphurization and denitrification of thermal power plant is coming to an end, and the follow-up market space is mainly from bid raising, with the gradual opening of the flue gas transformation market of small and medium-sized boilers to maintain the prosperity of the desulphurization and denitrification market, the company has taken over four boiler flue gas retrofit projects during the reporting period, and the follow-up order acceptance capacity remains to be seen. At present, we are mainly optimistic about the horizontal and vertical strategic layout of the company, and the company is involved in a number of new areas of energy saving and environmental protection, such as water, flue gas waste heat recovery, lightweight coal tar, etc., these strategic reserves may bring many new highlights for the company's future revenue. In addition, the company's participation in the establishment of industrial funds may be more conducive to the company's search for high-quality projects in smoke management and related industries.
Profit forecast and investment advice:
It is estimated that the company's EPS in 2015-2017 will be 0.50 EPS 0.70 yuan 0.92 yuan respectively, and the corresponding share price PE will be 30-21-16 times. Considering that the company has signed a large number of newly signed orders in recent years, SPC-3D technology will help the company to improve its market competitiveness, while the company's actively expanding business strategic layout will ensure future sustainable development and give the company an "overweight" rating.
Investment risk:
The progress of the BOT project is not as expected; the equipment utilization hours and the commissioning rate of the put-in project are not as expected; and the intensification of market competition leads to the decline of the gross profit margin of the project.