It is predicted that the net profit of returning to the mother for the whole year will be 220-2.45 billion yuan, and the business of recycling hazardous wastes will grow rapidly.
The company issued an annual report performance forecast, which is expected to achieve a net profit of 2.20 billion yuan to 2.45 billion yuan (year-on-year + 61.53 billion yuan 79.89%). The substantial increase in performance is due to the fact that the newly built front-end hazardous waste recycling capacity was put into production at the beginning of the year, and the utilization rate increased with the increase of treatment capacity. In addition, the prosperity of pumped storage and nuclear power equipment has improved, driving the profit growth of clean equipment manufacturing business compared with the same period last year.
The company's hazardous waste resource industry chain is complete, the product is recycled metal, extending the category to new energy metal. The company's hazardous waste recycling business covers the whole industry chain from hazardous waste-alloy to recycled metal, which can purify more than 10 kinds of recycled metal. It has also planned the production line of battery-grade nickel sulfate, cobalt sulfate and lithium carbonate from hazardous waste. As of 2021H1, the company has a production capacity of 1.78 million tons in the front end of transportation and hazardous waste, the market share is still low, and there are still millions of tons of production capacity to be built. The company's deep resource technology is more profitable than ordinary resource technology, coupled with multi-regional layout + technology first-mover advantages, to build the company's core competitiveness. In addition, the company's products are recycled metals, carbon neutralization background, the use of recycled metals can effectively reduce corporate carbon emissions, carbon reduction effect will further stimulate downstream demand.
With the increase in pumped storage demand, the company is expected to benefit from the first echelon hydrogenerator manufacturers in China.
In addition to the hazardous waste business, the company's revenue from hydropower and nuclear power equipment has also maintained growth. Pumped storage medium-and long-term planning to open a broad market space, 247 reserve projects corresponding to a total installed capacity of 305 million kilowatts (9.4 times of the existing scale), the company is expected to benefit as a first-tier equipment manufacturer.
In terms of nuclear power, the company is one of the main design and manufacturers of control rod drive mechanisms for nuclear first-level components of nuclear reactors in China. In the first half of the year, the company's newly signed hydropower / nuclear power orders reached 336 million yuan respectively.
Profit forecast and investment advice: the company's net return profit for 2021-23 is expected to be 2.56 trillion yuan, respectively, and the PE valuation corresponding to the latest closing price is 14.2 trillion, 12.9 and 10.7 times, respectively. Maintain the previous fair value of 10.52 yuan per share and maintain the "buy" rating.
Risk hint. The improvement of capacity utilization rate is lower than expected; the fluctuation range of hazardous waste and bulk prices is too large; the promotion of renewable resources policy is lower than expected.