Net profit fell 23% after deducting factors such as securities investment.
Over the past 15 years, the company achieved operating income of 3.536 billion yuan, an increase of 1.49% over the same period last year, and the net profit belonging to the parent company was 287 million yuan, an increase of 23.4% over the same period last year. Taking into account the 15-year reduction of Southwest Securities shares increased profits by 165 million; after deducting this factor, the company deducted non-net profit of 169 million yuan, down 23% from the same period last year.
Franchise installation has increased greatly, and denitrification catalyst business has shrunk seriously.
In terms of business, the environmental protection project completed 91 sets of desulphurization and denitrification transformation in 15 years (down 35%), the income was 2.097 billion yuan (down 12.8%), and the total profit was 53.02 million yuan (down 35.4%). In terms of franchise business, benefiting from the previous asset injection, the 15-year revenue was 1.431 billion yuan (up 30%) and the total profit was 284 million yuan (up 72.6%), but the decline in utilization hours and the increase in environmental protection costs may lead to a decline in the profitability of existing franchise assets. The denitrification catalyst business is affected by declining demand, intensified competition and other factors, with a 15-year income of 264 million yuan (down 69.4%) and a net profit of 20.02 million yuan (down 90%).
Acquisition of Jiangsu Ziguang to improve the industrial chain of flue gas treatment, rapid layout of wastewater, hazardous waste and monitoring fields
The company acquired 51% stake in Jiangsu Ziguang and quickly entered the field of dust collector manufacturing to provide customers with integrated flue gas treatment services for desulfurization, denitrification and dust removal. In addition, the company has successively distributed water, hazardous waste, wisdom monitoring and other fields: in sewage disposal, the company has signed contracts for Chaoyang, Lingyuan, Beipiao and other projects; for hazardous waste, on the basis of the existing nuclear waste disposal business, cooperate with Xinzhongtian Environmental Protection to carry out industrial hazardous waste projects through equity; in terms of monitoring, it has jointly established Chongqing Intelligent Environmental Protection Internet of things big data Company with a number of companies to lay out the local smart monitoring market.
Major shareholders increase their holdings and are optimistic about future performance, and new business brings growth points.
It is estimated that the EPS of the company in 16-18 years is 0.42,0.49,0.51 yuan respectively. The company is the only environmental protection platform under the China Power Investment Group, with the advantage of the controlling shareholder, the franchise business is expected to grow steadily for a long time; with the promotion of ultra-clean emissions, desulphurization, denitrification and dust removal and other transformation needs are expected to support the steady growth of the company's traditional business. At the same time, the company's layout of waste water, hazardous waste, monitoring is expected to bring new performance growth points. Give a "buy" rating.
Risk hint: the development of new business is not up to expectations, and the demand for desulphurization and denitrification transformation is declining.