A pioneer in the field of environmental protection, moving forward steadily
After the reorganization of start-up and environmental protection, with sewage treatment as the starting point, it has gradually developed into a water investment and operation company with the whole industry chain integrating investment, operation, management, research and development, etc. At the "2021 Water Industry Strategy Forum" hosted by the E20 environmental platform, it has won the honor of "Top Ten influential Enterprises in China's Water Industry" for the 16th consecutive year. In 2022, H1, the company achieved revenue of 2.129 billion yuan, an increase of 11.84% over the same period last year, and a net profit of 396 million yuan, an increase of 30.17% over the same period last year. In recent years, the scale of revenue has gradually expanded and the net profit has increased steadily. The company takes the basic business + strategic business way to expand business, with "based in Tianjin, serve the whole country" as the purpose, actively open up the market, the future development is worth looking forward to.
Policy driven, there are opportunities in the sewage treatment market
The incremental market of sewage treatment is limited, but according to the introduction of various policies, the national environmental treatment requirements are upgraded, the standards are constantly improved, and the sewage treatment technology needs to be upgraded synchronously in order to meet the market demand and meet the standards. At the same time, how to reuse and reuse sewage is the key at present. Therefore, there are opportunities in the related business areas with sewage treatment as the core, and there are still many opportunities in the related market.
Deep ploughing water treatment for many years, accumulated a wealth of experience in the operation and management of sewage treatment plants. At present, 47 sewage treatment plants and 20 managed sewage treatment plants have been put into operation; entrepreneurial environmental protection has sufficient basic strength and experience to continue to expand the subdivision areas related to sewage treatment, with the continuous blessing of independent research and development technology, it is expected to further lay out a complete industrial chain and enhance market competitiveness.
A two-pronged approach of strategic new business + business model
Under the background of double carbon + "14th five-year Plan", it is a period of great historical opportunity for the development of hazardous waste industry. As early as 2017, the environmental protection layout hazardous waste business has developed rapidly in recent years. The revenue of the dangerous waste business in 2021 is + 185% compared with the same period last year. The company's business is in the growth stage. At the same time, the trial operation of distributed photovoltaic projects will begin in 2020. In the stage of high prosperity in the photovoltaic industry, new businesses will be actively laid out, and future performance is expected to usher in new growth points.
With the rapid development and change of the environmental protection industry as a whole, the business model of entrepreneurial environmental protection is also keeping up with the pace of national policy and actively trying new business models. The company has carried out an infrastructure REITs declaration, which is expected to further invigorate assets and inject vitality from the inside out.
Profit forecast: we expect the company to achieve operating income of 50.75,59.10 and 6.802 billion yuan from 2022 to 2024, with net profits of 8.70,10.19 and 1.207 billion yuan respectively. Give the company 2023 PE11.2x, corresponding to the target price of 8.0 yuan, cover for the first time, give a "buy" rating.
Risk hints: policy risk, technical risk, operational risk, strategic business operation is less than expected risk, government credit risk, epidemic risk and so on.