Enlightenment Environment (000826) 2019 Interim Report Review: Engineering Construction Business Transformation Performance Continues Under Pressure
Event: Inspiration Environment (000826) released its semi-annual report for 2019, achieving operating income of 48.
01 billion, down 11 every year.
35%; net profit attributable to mother 3.
4.6 billion, down 43 each year.
05%; net profit after deduction 1.
8.6 billion, down 68 a year.
四川耍耍网 Opinion: The engineering and construction business has fallen sharply, and the operating services business has continued to grow.
In 2019H1, the company’s net profit continued to increase and its decline was extended. It announced that the basic policy and strategic layout had been adjusted. The main business was gradually transformed from engineering construction business to market operation service business, resulting in reduced revenue.
Businesses that achieved revenue growth in the first half include: sanitation service revenue.
5.2 billion yuan, an annual increase of 35%; solid waste treatment income 3.
10,000 yuan, a year-on-year increase of 93%; sewage treatment income 3.
USD 3.1 billion, a year-on-year growth of 97%; tap water sales revenue was zero.
7.8 billion, a year-on-year increase of 12%.
Businesses with declining revenue include: renewable resource processing revenue6.
120,000 yuan, 40% per year; municipal construction income 7.
7.1 billion yuan, an annual decrease of 48%; income from the installation of environmental protection equipment6.
6.5 billion, down 33% in one year.
Gross profit margin in the first half of the year was 24.
76%, a decline of 8 per year.
The 33 samples are mainly due to the increase in the gross profit margin of the environmental protection equipment installation business.
The cost rate during the period was 17.
71%, rising by 0 every year.
Among them, sales expenses have been reduced by 42 due to the decrease in sales staff.
In the first half of the year, sales receipts from previous years were increased, and net operating cash flow increased by 85 each year.
01%, but still -1.
5.7 billion yuan.
The environmental sanitation area continues to expand, which is expected to benefit the promotion of waste classification.
Cities at the prefecture level and above nationwide will fully popularize waste sorting in 2019-2025.
The company is one of the first enterprises in the country to implement the “two networks integration”, that is, waste classification and recycling of renewable resources.
In Hangzhou, Nanchang, Xi’an, Bengbu, Tianjin and other regions, waste sorting business has been launched.
And using smart chips, Internet of Things weighing, big data platforms and other equipment and technologies, gradually build a complete chain of waste classification from front-end traceability to gradual processing.
Currently, sanitation is distributed in 26 provinces, with a total of more than 400 projects and 43 operating contracts.
7.0 billion per year, of which 10 billion will be added in 2019H1, and the total service area will exceed 10 billion square meters.
The synergy effect of the solid waste disposal business gradually emerged.
In the first half of the year, solid waste treatment revenue increased significantly each year.Total treatment capacity of the operator’s domestic waste treatment project1.
58 / day, including the capacity of waste incineration power generation projects.
The processing capacity of 13 / day and landfill projects is 3,513 tons / day; the processing capacity of the kitchen waste treatment project and medical hazardous waste project are 970 tons / day and 20 tons / day, respectively.
At present, the total scale of solid waste disposal is 4.
59 per day (including under construction).
The internal integration of the water business sector, the upgrading and upgrading of water treatment capacity.
The company has established a water service platform, Xiong’an Puhua, in the Xiong’an New District. It will merge and manage the original water business with Puhua Environmental Protection.
At present, the total treatment scale of sewage projects is 265.
69 / day, the total scale of water supply projects is 88 / day.
Earnings forecasts and investment advice.
It is expected that the EPS for 2019-2020 will be 0.
42 yuan, 0.
47 yuan, corresponding to PE is 24 times, 21 times, considering the company’s short-term performance pressure, temporarily downgraded to neutral rating.
Funds are tight, project advancement is lower than expected, and business expansion exceeds expectations.