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高能环境(603588):资源化项目盈利陆续兑现 公司拟大幅提升分红

High energy environment (603588): Profits from resource projects have been realized one after another, and the company plans to significantly increase dividends

申萬宏源研究 ·  Aug 23, 2024 04:46

Key points of investment:

Incident: The company released its 2024 mid-year report. The company's revenue for the first half of 2024 was 7.545 billion yuan, yoy +68.85%; net profit to mother was 0.416 billion yuan, yoy -15.84%. It was mainly affected by the decline in engineering profits and the decline in net investment income, and the performance was in line with expectations.

Resource sector: core projects put into operation and operational improvements to drive sector performance improvement. 24H1's resource sector achieved revenue of 5.676 billion yuan, yoy +129%, but gross margin fell 2.9 ppts year-on-year to 8.76%, and overall gross profit increased markedly, mainly due to marginal improvements in core projects. 1) Jiangxi Xinke: After nearly a year of trial operation and technical upgrading, it ushered in full commissioning in April this year, building a closed loop in the copper-containing and other rare metals recycling industry chain. Sales revenue increased sharply year-on-year after gradual increase in production capacity, achieving revenue of 2.814 billion yuan in the first half of the year, after deducting 0.084 billion yuan in non-net profit; 2) Chongqing Yaohui: After nearly half a year of technical reform and upgrading, the technical upgrade was completed in February this year to further enhance the ability to handle high-content materials and broaden the range of raw materials that can be used in the face of shrinking raw materials and fierce market competition; 3) Jinchang High Energy: After nearly half a year of technical upgrading, production was gradually put into operation in April, and polymetal recycling can be achieved in the second half of the year; 4) Jingyuan High Energy, High Energy Pengfu, and High Energy Zhongke: As a mature resource project, they respond positively to adverse factors such as intense market competition and rising procurement costs, and the overall operation is normal. Among them, Jingyuan Gaoneng 24H1 achieved revenue of 1.23 billion yuan, after deducting 0.079 billion yuan in non-net profit. yuan.

Environmentally-friendly operations: Operations such as waste incineration are improving steadily. 24H1's environmental operating revenue was 0.883 billion yuan, yoy +9.12%, and the gross profit margin was 47.12%, up 5.61 ppts over the previous year; the company currently has 13 waste incineration projects with production capacity of 0.011 million tons/day; 7 solid waste hazardous waste harmless projects have license production capacity 0.1618 million tons/year, and medical waste license volume is 22 tons/day, all operating stably.

Environmental protection engineering: Due to the impact of the market and project settlement, the short-term volume of the project declined sharply. Affected by the market environment, the company's 24H1 revenue was 0.987 billion yuan, yoy -16.81%; the gross profit margin was 16.61%, down 13.49 ppts from the previous year, mainly due to the decline in gross margin of new orders on the one hand, and the increase in costs due to the settlement of some projects in the first half of the year.

Cash flow has improved dramatically. The company plans to pay 0.33 yuan per share in the first half of the year, with a dividend rate of 121%. The company's net cash flow from operating activities increased from -1.361 billion yuan in the same period last year to 0.11 billion yuan, mainly due to the negative cash flow caused by Jiangxi Xinke putting into production and preparing large amounts of goods in the same period last year. At the same time, the company issued the “2024 Semi-Annual Profit Distribution Plan Notice”, which pays a cash dividend of 0.33 yuan (tax included) per share, totaling 0.503 billion yuan. Based on the company's net profit of 0.416 billion yuan in the first half of the year, the company's cash dividend ratio for the 2024 semi-year is about 120.91% (30% dividend rate in 2023).

Investment analysis opinion: We are optimistic about the continued release of the company's resource utilization projects, maintaining the company's 2024-26 profit forecast of 1.03/1.196/1.306 billion yuan, corresponding PE of 7/6/5, respectively, to maintain a “gain” rating.

Risk warning: Resource-based business capacity falls short of expectations; market competition intensifies; risk of fluctuations in raw materials and product prices.

The translation is provided by third-party software.


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