2023H1 performance was + 7.3% year-on-year, and net operating cash flow was + 48.7% year-on-year. In the first half of 2023, the company achieved operating income of 2.98 billion yuan (+ 4.3% compared with the same period last year) and net profit of 630 million yuan (+ 7.3% compared with the same period last year). This is mainly due to the steady growth of the company's solid waste treatment capacity and power generation over the same period last year, and achievements in the development of new business and new areas. The company's stock project has outstanding hematopoietic capacity, and benefited from the increase in operating projects, electricity price subsidies and government tax rebates in the first half of the year. 2023H1 achieved a net cash flow of 890 million yuan (+ 48.7% compared with the same period last year), with a net current of Prida 1.41.
The operating income of the project increased by 14% compared with the same period last year, leading the industry in power generation efficiency. By the end of 2023H1, the company's holding and shareholding capacity has reached 40 million tons / day and 15 million tons / day respectively. There are still 6 waste incineration projects under construction and preparation, with a design capacity of 0.45 million tons / day. With the production capacity put into production, 2023H1 achieved project operating income of 1.781 billion yuan (year-on-year + 13.7%). Among them, waste disposal and power generation reached 6.81 million tons (+ 12.6% compared with the same period last year) and 2.703 billion degrees (+ 11.8% compared with the same period last year), respectively, which are the main driving forces of the company's performance growth after excluding subsidies. In addition, the power generation access rate of 2023H1 also increased to 88.3% compared with the same period last year, continuing to maintain a leading level in the industry.
Remarkable achievements have been made in expanding overseas markets, and every effort has been made to strengthen the coordination of steam heating, catering and other businesses. 2023 according to the semi-annual report, in the first half of the year, the company's overseas market progressed smoothly and successfully signed the contract for the supply of incinerator equipment for the fifth phase of Salabri in Thailand and the design contract for the Beijiang waste incineration project in Vietnam. At present, the company's incinerator technology and equipment has achieved a total of 245 projects and 399 incineration lines worldwide. At the same time, the company's 2022H1 steam heating, kitchen waste and sludge disposal increased by 16.1%, 122.2% and 44.1% respectively compared with the same period last year.
Profit forecast and investment advice. It is estimated that from 2023 to 2025, the company will achieve net profit of 13.12,15.20 and 1.755 billion yuan respectively, corresponding to the latest PE of 9.41,8.13,7.04 times respectively. The accelerated release of production capacity under construction and preparation for construction will give the company 15 times PE valuation in 2023, corresponding to 11.73 yuan / share reasonable value, and maintain the "buy" rating.
Risk hint. The project construction is low expected; the overseas expansion is not as expected; the state reimbursement is low expected, and so on.