Event: the company issued a performance forecast for 2022, which is expected to achieve operating income of 530 million yuan to 570 million yuan in 2022, an increase of 37.79% to 48.19% over the same period last year; net profit of 65 million yuan to 72 million yuan, an increase of 45.64% to 61.33% over the same period last year; deduction of non-recurrent net profit of 55 million yuan to 62 million yuan, an increase of 45.41% to 63.92% over the same period last year (non-recurrent profit and loss are mainly government subsidies) The company's performance has achieved rapid growth, in line with expectations.
With the support of the policy, the prosperity of the heavy metal pollution control industry has been improved:
According to the company's performance notice, in 2022, the government issued the "opinions on further strengthening the Prevention and Control of heavy Metal pollution". Driven by the policy, the market demand for the prevention and control of heavy metal pollution has increased. The company's performance in heavy metal integrated solutions and operational services has increased significantly.
The company is a scarce heavy metal pollution control enterprise in the industry, mainly carries out comprehensive solutions for the prevention and control of heavy metal pollution for the metallurgical and new energy industries, and provides pharmaceutical products and operational services. after years of research and development, a series of heavy metal pollution treatment technologies have been formed, such as waste acid resource treatment technology, heavy metal wastewater advanced treatment and reuse technology, arsenic-containing hazardous waste mineralization detoxification series technology and so on. In the context of the substantial expansion of the heavy metal pollution market, the company's performance is expected to continue to move forward at a rapid pace.
The heavy metal pollution incident in Yichun has come to an end for the time being, but the prevention and control of heavy metal pollution in the new energy industry is still urgent:
From November to December in 2022, heavy metal pollution occurred in the water source area of Yichun, Jiangxi Province, and the heavy metal pollution was paid more attention by the market. In early December, Yichun water source was quickly repaired, and listed lithium enterprises also quickly resumed production. On December 6, the people's Government of Yichun City issued a notice on the incident that Jiangxi Qijin Materials Co., Ltd., a recycled lead enterprise, was the main source of pollution. Jiangxi Qijin Materials Co., Ltd. and Jiangxi Yongxing Special Steel New Energy Technology Co., Ltd. are currently under investigation for allegedly evading regulation. We believe that although the incident has come to an end for the time being, the impact of the incident is still far-reaching, and the subsequent environmental non-compliance enterprises involved in lithium carbonate calcination are more likely to face rectification. The prevention and control of heavy metal pollution is still urgent. In addition to the traditional metallurgical industry, the new energy industry is also expected to become one of the key industries for the prevention and control of heavy metal pollution.
Investment advice:
We estimate that the company's income from 2022 to 2024 will be 550 million yuan, 860 million yuan and 1.09 billion yuan respectively, with growth rates of 43.2%, 55.3% and 27.5% respectively, and net profits of 68 million yuan, 123 million yuan and 182 million yuan respectively, with growth rates of 51.2%, 82.8% and 47.4% respectively. Outstanding growth; maintain the Buy-An investment rating, the 6-month target price is 36.0 yuan.
Risk hint: the policy promotion is not as good as the expected risk, and the heavy metal pollution control of the new energy industry is not as expected as expected.