Organic solid waste treatment leading enterprises, the overall operation is sound. The company was founded in 2001, the main business is organic solid waste, municipal solid waste harmless treatment and resource utilization, as well as the provision of related environmental engineering services, is China's leading enterprise in the field of organic solid waste treatment. In 2022, the company achieved an operating income of 1.819 billion yuan, an increase of 12.35% over the same period last year, and a net profit of 243 million yuan, an increase of 6.34% over the same period last year.
We will actively promote the eco-environmental park model and continue to obtain new projects with high profits. The company actively promotes the eco-environmental park model to uniformly plan and build two or more organic solid waste treatment facilities, such as catering waste, kitchen waste and animal solid waste, so as to realize the coordinated treatment of a variety of organic solid wastes. it has the advantages of saving land area, deep resource utilization, reducing operating costs and so on. At present, the company has more than 30 organic solid waste and eco-environmental park franchise projects throughout the country. The typical projects are mainly located in the central city of Guangdong-Hong Kong-Macau Greater Bay Area and the surrounding cities. In the future, the Guangzhou Eco-Environmental Park project will be taken as the benchmark. Shenzhen and Guangzhou as the center, to the Great Bay area, the Yangtze River Delta, Beijing-Tianjin-Hebei, separately listed cities and other regions. Get more organic waste disposal projects with high profitability.
Focus on biodiesel, with the rapid growth of production capacity. Biodiesel is an important source of revenue and profit for the company. at present, there are two biodiesel projects mainly in Longgang District of Shenzhen and Huangpu District of Guangzhou, which were put into operation in 2016 and 2021 respectively, with an annual production capacity of 20,000 tons and 150000 tons of high-quality biodiesel respectively. In recent years, with the Guangzhou project biodiesel workshop put into production, the company's biodiesel production capacity has increased significantly, while the biodiesel market demand is strong. In 2020-2022, the company's biodiesel sales revenue was 103 million yuan / 519 million yuan / 925 million yuan, respectively. The proportion of revenue was 9.13%, 32.09% and 50.86%, respectively, achieving rapid growth.
Smooth listing of abundant funds, continue to consolidate the main business. In May 2023, the company was successfully listed on the gem, with a total of 60.8927 million shares and a net fund of 1.425 billion yuan. Among them, 657 million yuan of the funds raised is planned to be used for the Zhongshan Ecological Environment Park project, which mainly serves the urban area of Zhongshan City, with a franchise period of 27 years. The total design capacity is 400t / day for kitchen waste, 500t / day for kitchen waste, 100t / day for feces and 4t / day for animal carcasses. The rest of the raised funds will be mainly used for R & D center and information construction, replenishing working capital. At present, the total investment in the bid-winning reserve project of the company is 614 million yuan, and abundant working capital is conducive to the continuous release of the company's performance.
Profit forecast: we estimate that the company's operating income from 2023 to 2025 will be 2.276max 2.857 trillion yuan respectively, and the net profit from its mother will be 301pm 353max 407 million yuan respectively, corresponding to 17.52x/14.94x/12.96x PE, which will be covered for the first time and will be rated as "overweight".
Risk tips: fund-raising project implementation is not as expected, biodiesel performance fluctuations, project construction is not as expected or project default, profit forecast and valuation model is not as expected.