Hanlan Environment (600323) Semi-annual Report Comment: The solid waste sector has delivered half-year results exceeding expectations

Hanlan Environment (600323) Semi-annual Report Comment: The solid waste sector has delivered half-year results exceeding expectations

Event: The company disclosed its semi-annual report for 2019, and the company realized operating income in the first half of the year26.

70 ppm, an increase of 16 in ten years.

63%; net profit attributable to parent company4.

50 ppm, a reduction of 10 per year.

83%; net profit attributable to parent company after deduction of 4.

470,000 yuan, an increase of 25 in ten years.


The semi-annual report of non-performance was higher than expected, and the solid waste and sewage business grew.

In the first half of 2019, the company achieved operating income26.

70 ppm, an increase of 16 in ten years.

63%; net profit attributable to parent company after deduction of 4.

470,000 yuan, an increase of 25 in ten years.


The company’s revenue growth is mainly due to the solid growth of the solid waste, sewage and gas sectors. 1) Revenue from solid waste business10.

980,000 yuan, an increase of 37 in ten years.

01%, the economic growth comes from the company ‘s Nanhai Phase III, Jinjiang, Anxi, Xiaogan, Zhangzhou South, Kaiping, Raoping, Wanzai and other waste incineration projects are under construction. The company’s recognized project revenue has increased, and the other upstream, Ganzhou, Jiangxi, hazardous waste, the Langfang Phase II project put into operation this year, and some of the projects that have been put into operation have also contributed to the price increase last year; 2) Wastewater treatment revenue.

4.2 billion, an increase of 37 in ten years.

37%, mainly due to the completion of the company’s 46 daily feed / day sewage treatment capacity upgrade and transformation, unit price of sewage treatment improved; 3) revenue from gas business9.

27 ppm, an increase of 17 in ten years.

17%, mainly due to the company’s focus on expanding village-level industrial parks and ceramic enterprise users to obtain good performance, gas sales have increased; 4) Supply business realized revenue4.

22 trillion, a reduction of 0 a year.

78%, the construction of the fourth phase of the Nanhai Second Water Plant is still in progress.

The company’s semi-annual report revenue growth was in line with expectations. The higher-than-expected performance was mainly due to the company’s solid waste business profitability being better than expected in emerging markets. Project price increases and Jiangxi Ganzhou hazardous waste operation hedged the increase in project income and increased the gross profit margin of the sector.High impact, the solid waste sector gross profit margin of 40 in the first half.

1% compared to 35 in earlier years.

2% has 4.

9bp increase.

The mismatch between the growth rate of the company’s non-previous net profit and the non-deducted net profit is mainly due to the company’s disposal of equity in the company’s kiln market in the same period of 18 years, resulting in non-recurring gains and losses1.

4 billion.

The utility sector is solid, with large solid waste leading growth.

In the next few years, the company’s public utility sector will be generally stable overall, and its growth will be mainly in solid waste.

In terms of domestic solid waste, the Langfang and Shunde projects have been put into operation, and Zhangzhou South will soon be put into operation, which will become the main increase in the solid waste sector this year.Other projects are expected 杭州桑拿网 to start contributing performance in the next two years, and the Shengyun project that they took over will contribute performance in the long run.

At the same time, the company’s Harbin, Mudanjiang and other food and kitchen projects, Lechang, Huaiji, Suixi agricultural solid waste projects are progressing smoothly.

In terms of hazardous waste, the company is actively expanding. Ganzhou Honghua Environmental Protection has been put into production. The Nanhai hazardous waste project is also planned to be completed by the end of this year, including 3 incineration, 3 physical and chemical, and 3.

3Compared to industrial sludge, 5000 tons of goods are received for transshipment. After the project is put into operation, the company’s solid waste sector profit will get a larger deviation.

The next few years will be a period of strength for the company’s solid waste sector. The increase in solid waste revenue as a percentage of the company’s total revenue will raise the company’s overall valuation.

Undertake some environmental protection waste incineration projects of Shengyun, and the operation volume has been improved again.

The company reached a strategic cooperation agreement with Shengyun Environmental Protection in June this year. It has been preliminarily determined to undertake Shengyun Environmental Protection under Jining Phase II (800 tons / day), Xuancheng Phase II (1000 tons / day), and Haiyang Project (500 tons / day).(Days, Days), Uranchabu Project (1200 tons / day), Mengyin Project (500 tons / day) and Huaian Phase II (800 tons / day) 6 incineration power generation projects totaling 4,800 tons / day of concessionRight, the company currently has a total contract size of 2.

The lowest exchange rate / day, the operating volume of the cooperative operating company obtained 15.6% improvement.

After the company dated to invest in SDIC Power, relying on the steady and aggressive progress of the central enterprises, the Hanlan Industrial Park model tried to accelerate its expansion outside the province to help promote the solid waste strategy.

Earnings forecast and investment grade: We expect the company’s main operating income for 2019-2021 to be 58.

67 billion, 66.

3.6 billion and 73.

7.4 billion, net profit attributable to mothers was 9.

45 billion, 11.

06 billion and 12.

59 yuan, the corresponding EPS is 1.

23 yuan, 1.

44 yuan and 1.

64 yuan, corresponding to PE is 14 times, 12 times and 10 times respectively, maintaining the company’s “strongly recommended” level.

Risk warning: Natural gas prices have fallen sharply; solid waste projects have not progressed as expected.