环保设备营收承压，新能源快速发展。24H1，环保设备制造实现营收40.94 亿，同比下降7.64%，占公司总营收比重87.64%，同比下降2.08pcts，实现毛利率23.83%。除该板块外，其他主营业务板块营收均同比增长，其中项目运营收入4.43 亿，同比增长21.47%，毛利率19.78%，土壤修复营收0.19 亿，同比增长84.55%，毛利率25.92%，新能源业务营收0.35亿，同比增长190.38%，毛利率27.87%。此外，公司实现境外营收1.38亿，同比增长83.07%，占公司总营收比重2.94%，同比提升1.42pcts。Incident: In the first half of 2024, the company achieved operating income of 4.672 billion yuan, a year-on-year decrease of 5.44%; net profit to mother of 0.431 billion yuan, an increase of 0.80%; net net non-return of 0.391 billion yuan, a year-on-year increase of 32.66%; and a basic EPS of 0.40 yuan/share, which was the same as the previous year.
Comment: The cost rate decreased during the period, and the net increase in deductions was not attributable to the mother. The company achieved revenue of 2.394 billion in 24Q2, a year-on-year decrease of 5.09%. The decline narrowed by 9.24 pcts, up 5.13% month-on-month, and increased 0.79 pcts.
In terms of expenses, the sales/management expense ratio decreased by 0.2/2.73 pcts year on year, the R&D/finance cost ratio increased by 0.78/0.47 pcts, and the period cost ratio decreased by 1.68 pcts year on year. The decline was 0.84 pcts higher than the previous quarter, and the cost reduction effect was remarkable. In terms of profit, the company's operating profit/total profit/net profit/net profit to mother decreased by 6.12%/8.39%/3.85%/4.37% year-on-year, respectively. However, net profit without deduction to mother was 0.219 billion, up 61.09% and 28.11%, respectively, and the profitability of the core business increased. In addition, net cash flow from the company's operating activities increased by 73.59% and 1297% to 0.496 billion, respectively, and capital expenditure increased by 111.42% and -9.64% to 0.55 billion, respectively. The balance ratio continued to decline to 67.61%, and the interest-bearing debt ratio was only 23.48%, which is a low level.
Revenue from environmental protection equipment is under pressure, and new energy sources are developing rapidly. In 24H1, environmental protection equipment manufacturing achieved revenue of 4.094 billion, a year-on-year decrease of 7.64%, accounting for 87.64% of the company's total revenue, a year-on-year decrease of 2.08pcts, and a gross profit margin of 23.83%. In addition to this sector, revenue from other main business segments increased year on year, with project operating revenue of 0.443 billion, up 21.47% year on year, gross profit margin of 19.78%, soil restoration revenue of 0.019 billion, up 84.55% year on year, gross profit margin 25.92%, new energy business revenue 0.035 billion, up 190.38% year on year, and gross profit margin of 27.87%. Furthermore, the company achieved overseas revenue of 0.138 billion, up 83.07% year on year, accounting for 2.94% of the company's total revenue, up 1.42 pcts year on year.
There are plenty of orders in hand, and it is expected to benefit from carbon reduction transformation. In the field of electricity, new coal and electricity construction projects are progressing steadily. Furthermore, with the publication of the “Action Plan for Low-Carbonization of Coal and Electricity (2024-2027)”, “Low Carbon” has become one of the priorities of the next clean coal power transformation; in the non-electricity sector, carbon reduction transformation in the steel, coking, cement and other industries is progressing steadily, and company orders are expected to benefit from it. In the first half of 2024, the company added a total of 5.527 billion yuan in environmental protection engineering contracts, of which the power industry accounted for 56.79% and the non-electric industry accounted for 43.21%; at the end of the period, the environmental protection engineering contract in hand was 19.538 billion yuan, and the sales contract for energy storage systems and equipment in hand was 1.499 billion yuan. In terms of new energy, the company's green power business has developed on a large scale, launched the green new energy mining equipment business, and the yield of energy storage batteries has steadily increased.
Profit forecast: Maintaining the company's “neutral” rating. We expect the company's revenue for 2024-2026 to be 10.795/11.122/11.388 billion yuan, with net profit to mother of 0.739/0.812/0.85 billion yuan, and corresponding PE of 16.24x/14.78x/14.11x, respectively.
Risk warning: Changes in the macro situation have exceeded expectations, orders have fallen short of expectations, approval and construction of wind and power storage projects have fallen short of expectations, and profit forecasting and valuation models have fallen short of expectations.
