Weiming Environmental Protection (603568): The incineration power generation project continues to land and contributes to the growth rate of the restaurant and cleaning market.
The results of the third quarter report are in line with expectations: The company released the third quarter report of 2019, and achieved revenue of 15 from January to September 2019.
380,000 yuan, an increase of 31 in ten years.
43%; net profit attributable to mother 7.
45 ppm, an increase of 29 in ten years.
05%; deduct non-attributed net profit 7.
28 ppm, an increase of 28 in ten years.
20%; basic profit income is 0.
80 yuan, an annual increase of 26.
Performance is in line with expectations.
The project continued to contribute to the growth rate of the landing, and the orders in hand are optimistic about the future: According to the announcement, the company completed the garbage storage volume of 390 from January to September 2019.
1 ton, an increase of 26 in ten years.
3%; completed power generation 13.
700 million degrees, 19 years growth.
The first three quarters of the company’s projects continued to land, Wuyi Project, Ruian Phase II, Jieshou Project, Wannian Project, Yucang Technical Transformation, Jiashan Phase II have been put into operation. Currently, the scale of projects in operation exceeds 1.
4 days / day.
In the third quarter, Fengxin Project (900 tons / day), Wuyuan Project (500 tons / day), Yuhuan Phase II (500 tons / day), Linhai Phase II (750 tons / day), and Zhangshu Project (1000 tons / day) progressSmoothly, the Dongyang project (1650 tons / day), Longquan project (300 tons / day), Yongfeng project (800 tons / day), and Shuangyashan project (900 tons / day) were approved and approved by the environmental assessment, and they all entered the construction phase.
The company’s new starting point Lotus project, Dongyang project, Yongfeng project, Minqing project, Luohe project, Dongming project (shareholding 30%), Anfu project, Ningjin project, Chengjiang project, Fujin project, Jiahe project, total since 2019The processing scale is about 9300 tons / day.
At present, the total processing scale of the company under construction + proposed projects has exceeded 1.
9 青岛夜网 Every day, the project construction goes smoothly and sufficient orders in hand provide guarantee for the company’s future performance.
The restaurant and kitchen business has developed steadily, and the sanitation and transportation market has continued to develop: the company completed the first three quarters of 2019 in the amount of restaurant and sludge garbage storage14.
4 In the short term, the Wenzhou and Ruian kitchen and kitchen projects have been officially put into operation, with a total capacity of 350 tons / day. The construction of Yuhuan, Yongkang, Jiashan, Jiangshan and other kitchen and kitchen projects is progressing smoothly.Construction of kitchen, sludge and manure projects totaling about 1,200 tons / day.
The company’s clearing market continues to expand. New multi-year waste clearing orders from 2019 to the present include Jiashan project, Erhai project, Meishan project, Pengzhou project, Jiahe project, and Lucheng project.
In addition, the company’s seepage project has been running smoothly. At present, the infiltration reduction scale is about 555 tons / day.
The equipment company strengthened the external sales and the technology level was continuously improved: the company adjusted the Weiming equipment production management model, strengthened the expansion of procurement management, and established a product sales department to speed up the external sales of equipment.
In February 2019, Weiming Equipment’s long-term Pingtan EPC project equipment purchase contract, the contract amount was about 0.
470,000 yuan. In October 2019, Weiming Equipment and Weiming Technology jointly designed and purchased a long-term Dongming domestic waste incineration power generation project, with a contract amount of 1.
Equipment companies actively develop external services to provide new impetus for the company’s performance growth.
Weiming equipment achieved revenue in the first half of 20192.
3.6 billion, an increase of 40% each year.
The company has always expected research and development, and the company’s research and development expenses from January to September 2019 are about 2748.
10,000 yuan, an increase of 181 in ten years.
The company has newly obtained 3 additional utility model patents. As of the first half of 2019, the company has gradually obtained 15 invention patents, 73 utility model patents, and 14 software copyrights.
In June, Weiming Equipment won the prize 905 of Wenzhou Longwan District Economic and Informatization Bureau Manufacturing Enterprise upgrade promotion file.
The operation + equipment model is scarce, the management level is superb, and the operation profitability is strong: the company has cultivated the waste incineration industry for 20 years and has rich experience, forming an alternative project management capability.
The company is one of the few companies with the capability of self-made core equipment for waste treatment, flue gas treatment, automatic control, and leakage disposal.
The company’s key waste incineration equipment is supplied by the subsidiary Weiming Equipment, which reduces project investment and conversion. The company’s BOT project equipment overhaul, replacement and restoration costs are expected to decrease depreciation during the project operation period. Therefore, the company’s operating business gross margin is above 60%.At a high level in the industry.
The company’s operations and projects in hand are mostly in Zhejiang Province. The local economy is developed, the cost of waste disposal is high, the demand for disposal is large, the local financial capacity is strong, the residents of Zhejiang have a higher living standard, a higher calorific value of garbage, and a slender ton of garbage online.Higher, the project is extra high quality and profitability is guaranteed.
Investment suggestion: It is expected that the company’s EPS for 2019-2021 will be 1.
50 yuan / share, corresponding to PE of 21.
6x, given an Overweight-A investment rating, with a 6-month target price of 25.
Risk reminder: The project advances less than expected, and the waste incineration power generation subsidy reduces the risk.