Events:
The company released its three-quarter report in 2023, with revenue of 14.263 billion yuan in the first three quarters, + 20.57% year-on-year, and net profit of 987 million yuan, 5.41%, deducting 788 million yuan of non-return net profit,-15.96% of the same period last year.
23Q3 achieved revenue of 4.91 billion yuan, year-on-year + 21.93%, month-on-month + 4.16%, net profit of 239 million yuan, year-on-year-38.28%, month-on-month-5.91%, deducting non-return net profit of 277 million yuan, year-on-year-22.08%.
The net profit of 23Q3 has declined compared with the previous month, and its performance is under short-term pressure.
The company's non-recurrent profit and loss in the third quarter was-38 million yuan, affecting the month-on-month decline in net profit. 2023Q1-Q3 achieved a gross profit margin of 13.53%, year-on-year-3.82pct, net profit margin of 7.00%, year-on-year-1.87pctscape 23Q3 sales gross profit margin of 11.89%, year-on-year reduction of 5.86pct, month-on-month reduction of 1.93pct; sales net profit margin of 5.01%, lower 4.58pct and 0.45pct than the same period last year.
Hazardous waste recycling business integrated layout, process technology continues to lead the company to actively layout hazardous waste recycling business, with hazardous waste "collection-storage-harmless treatment-resource deep processing" front and back integrated industrial chain. Up to 23Q3 company has 1.75 million tons / year high temperature melting capacity, can completely realize harmless treatment of hazardous waste, and the planned 40,000 tons / year new energy vehicle waste power battery disassembly project has completed the project record, is building 4 sets of waste power battery disassembly production line and 40,000 tons of new energy vehicle waste power battery disassembly, technology to maintain the industry's leading.
Technology and market two-wheel drive, clean energy equipment sector is expected to usher in high growth on July 31, the executive meeting of the State Council examined and approved six third-generation nuclear power units, a total of 25 nuclear power units under construction in China, the overall scale is in the forefront of the world, nuclear power development potential is great. As of 23Q3, it has completed the production and delivery of equipment for hundreds of large and medium-sized hydropower stations around the world, and the R & D and production of nuclear first-class components for more than a dozen nuclear power plants at home and abroad. At the same time, the company cooperates with the Yichang government and the three Gorges Group to promote the construction of 10 sets of hydropower equipment per year. Huadu, a subsidiary, is the only supplier that has passed the third-generation standard seismic test and the third-generation nuclear power "Hualong No.1" control rod drive mechanism. Under the blessing of water and nuclear power equipment, the clean energy equipment sector is expected to usher in a high growth.
Earnings forecast, valuation and rating
We estimate that the company's revenue for 23-25 years will be 189.35 million yuan, respectively, with a year-on-year growth rate of 12.84%, 11.89%, 10.00%, 13.61, 17.83, and 2.08 billion yuan, respectively, and-7.19%, 30.99%, 12.65%, 12.65%, 0.26, 0.34, 0.38 and 11.03 per share, respectively, respectively. The corresponding PE is 14.4, 11.0, 9.8, respectively. It is suggested that we should pay close attention to it.
Risk hint: industry competition aggravates risk; raw material price rise risk; policy risk.