Wangneng Environment (002034)： The project maintains high growth and the construction of various projects progresses smoothly
Wangneng Environment (002034): The project maintains high growth and the 重庆耍耍网 construction of various projects progresses smoothly
Event: Wangneng Environment released the semi-annual report for 2019, and the company achieved operating income in the first half of 20195.
68 ppm, an increase of 49 in ten years.
46%; net profit attributable to mothers2.
07 million yuan, an increase of 66 in ten years.
56%, which is the highest point of the company’s semi-annual performance forecast in the first quarter of 2019 (the first quarterly report is expected to return to the parent’s net profit range of 1.
The projects under construction were put into operation smoothly, which promoted the rapid growth of performance.
A total of 3 companies in the report were put into production (2150 tons / day of waste disposal per day), and Xuchang Wangneng (2250 tons of waste disposal per day) 武汉夜网论坛 successfully entered into trial operation. In addition, two food and kitchen projects in Lishui Ecological and Deqing Ecological were basically completed.Civil works.
The project under construction smoothly promoted the operating company’s half-year garbage storage volume (203) and power generation volume (6.
(4.7 billion degrees), all hitting a new record high for the company, driving the operating income of the household and food waste project operating segment to +86 per year.
64% to 4.
9.2 billion yuan.
The company’s environmental protection equipment installation and sludge disposal segment operated steadily, and its overall gross profit margin remained at 52.
41% high, excellent management level or period expense ratio dropped 2.
13 pct to 14.
02%, net profit attributable to mothers maintained a rapid growth trend.
The business scope continued to develop, and the work on convertible bonds progressed steadily.
While doing a good job in the waste incineration industry, the company actively uses the radiation effect of the laid-out wooden blocks, and continues to expand in the kitchen and sludge segments, while expanding into the field of soil remediation.
The company plans to issue no more than 14.
The US $ 500 million convertible bond was used for the construction of waste treatment projects in Taizhou Phase III, Jingzhou Expansion, Quxian, Qingtian, and Public Security. At present, it has received a feedback from the CSRC.
The company has a number of projects under construction and capital expenditures will remain high in 19-21 (2019H1 capital expenditures increase +61.
9% to 11.
58 million, cash in hand 10 at the end of the reporting period.
USD 6.9 billion, the successful completion of convertible bonds in the future will provide a strong guarantee for the company’s projects under construction.
Maintaining the “overweight” level: The company’s projects under construction are advancing smoothly. The Xuchang project (with a daily waste treatment capacity of 2,250 tons) entering trial operation in June will bring considerable performance gains. Therefore, we have slightly increased the company’s net profit for 19-21 years to 4.
7.9 billion (previous average 3).
5 billion), the company’s EPS for 2019-21 is expected to be 0.
39 yuan, currently corresponding to the 19-year PE is 14 times.
During the period, the company’s expenses were well controlled, and the multi-project operation in 19/20 provided strong support for performance growth and maintained the “overweight” level.
Risk reminder: The project under construction has been put into operation less than expected, and the deterioration of the financing environment has affected the company’s expansion.