Event: fresh Environment issued an announcement, according to the needs of the company's business development, plans to use its own capital of 76.9677 million yuan to increase capital to the participating company Sichuan Tianshengyuan Environmental Protection Co., Ltd., to obtain its 11% equity. After the completion of the capital increase, Qingxin Environment holds a 60% stake in Tianshengyuan, and Tianshengyuan becomes a holding subsidiary of Qingxin Environment and is included in the scope of the consolidated statement.
Comments:
Broaden the environmental industry chain and lay out the field of ecological restoration. Tianshengyuan is mainly engaged in environmental monitoring and testing, soil environmental investigation, assessment and remediation, intelligent environmental protection and other business, is the leading enterprise of environmental monitoring in southwest China, and was selected into the "National third soil Survey Laboratory list" (the first batch) in 2022. By increasing the capital of Tianshengyuan, the company can absorb a number of industry experts and technical personnel, enhance the overall intelligent operation ability of the company; at the same time, with the help of Tianshengyuan platform, help the ecological protection of the source of the two rivers, expand the field of soil, mine, groundwater and watershed restoration in the southwest and even the whole country, further broaden the environmental industry chain, and enhance profitability in the future.
Based on the advantages, adjust the strategy, and constantly expand the territory. The company starts from thermal power smoke control, pays attention to technological innovation, and has accumulated rich experience in the field of industrial flue gas treatment. At the same time, facing the "14th five-year Plan"
With the new competitive environment and development trend, the company actively adjusts its development strategy and puts forward the development direction of "ecological, low-carbon and resource-oriented". In addition to the horizontal expansion of the company's business in the field of smoke control to non-electricity, through the acquisition of relevant assets, the company is also expanding vertically in the fields of water, soil treatment and comprehensive utilization of energy, actively expanding its layout and expanding its territory.
The advantages of shareholder platform appear to help the company to build an integrated environmental service provider. In 2019, the company introduced Sichuan Development (holding) Co., Ltd. (now renamed "Sichuan Ecological Environmental Protection Industry Group") as the controlling shareholder, which makes the company have the advantages of both the standardized management of state-owned enterprises and the platform of listed companies. As a provincial environmental protection platform in Sichuan, the controlling shareholder provides support and coordination for the company in terms of credit, capital, resources and so on. At present, the synergy advantage of shareholder platform support is gradually emerging, which is expected to help the company accelerate to become an integrated environmental service provider integrating gas, water, solid and energy utilization.
Profit forecast and investment rating: for 2021-2023, the company's revenue is respectively 62.9%, 82.6%, 10.15 billion yuan, an increase of 52.5%, 31.3%, 22.9%, respectively, and the net profit is 5.8, 7.1, and 870 million yuan per share, respectively, and the year-on-year growth rate is 176.6%, 23.0%, 21.3%, 0.41, 0.51 and 0.62 per share, respectively. The corresponding PE is 16.1, 13.1, and 10.8 times respectively, maintaining the company's buy rating.
Risk hints: stable growth policies fall short of expectations; company orders fall short of expectations; and business development such as resource utilization, solid waste and dangerous waste is not as expected.