Weiming Environmental Protection (603568) Company Research: High Performance Growth Is Worth Looking Forward

Weiming Environmental Protection (603568) Company Research: High Performance Growth Is Worth Looking Forward

Event: The company released three quarterly reports, with revenue of 15 in the first three quarters of this year.

4 trillion, the same increase of 31.

4%, net profit attributable to mother 7.

500 million yuan, an increase of 29.

1%.

High performance growth, the future is worth looking forward to.

The company released three quarterly reports, with revenue of 15 in the first three quarters of this year.

4 trillion, the same increase of 31.

4%, net profit attributable to mother 7.

500 million yuan, an increase of 29.

1%; third quarter revenue 5.

7 trillion, the same increase of 32.

6%, net profit attributable to mother 2.

600 million, an increase of 26.

1%.

The high growth of the company’s performance was mainly due to the formal operation of the beachfront company, Yucang Company, Wuyi Company, Jieshou Company, Wannian Company, and Jiashan Phase II in 2019 to confirm revenue, increase in company 北京夜网 equipment sales and technical services, and transport waste incineration projectsContinuously put into production, the company’s performance is expected to continue high growth.

The amount of power generation and waste disposal has increased steadily, and the amount of electricity generated per ton of waste has remained flat.

As of the first three quarters of 2019, the company has completed an inventory of 375 household garbage.

6 cobalt, with the same increase of 21.

6%; complete online power 11.

200 million degrees, an increase of 19.

9%. Based on this, the company calculated that the first three quarters of 2019’s ton of garbage online power was 295.

5 degrees. In the first three quarters of 2018, the company’s ton of garbage online was 298.

At 1 degree, the electricity capacity of tons of garbage on the Internet has remained basically stable.

There are many projects in hand, and the performance is flexible.

The company currently operates a waste incineration daily treatment capacity of approximately 1.

5 announcements / day, project 1 under preparation.

7 daily / day. It is expected that the company’s Yuhuan expansion project (500 tons / day), camphor project (1000 tons / day), and Linhai expansion project (750 tons / day) will be put into production in the fourth quarter of this year.

In addition, the company has 1,215 tons / day of hand-made kitchenware projects, 150 tons / day of sludge, 555 tons / day of leakage, and 4650 tons / day of waste collection and transportation projects. We believe that the company is expected to put more high-quality waste incineration and other solid productsDiscontinued projects with high performance flexibility.

The company’s employee stock ownership plan in 2019 covers no more than 25 core personnel, demonstrating the confidence of executives.

In October 2019, the company announced that it plans to participate in no more than 25 core employees (including 8 directors, supervisors, and senior management personnel, and no more than 17 others). In 2019, the employee stock ownership plan will raise no more than 226.8 million yuan., Accounting for the company’s total share capital1.

1%, the employee stock ownership plan shows the core employees’ confidence in the company’s development.

Investment suggestion: As a private waste incineration leader, the company has excellent management, possesses incineration core equipment production and marketing capabilities, and has a high project return rate.

At the same time, the company has abundant waste incineration projects in hand, and its performance will be flexible in the next few years.

We estimate that the company’s net profit attributable to its parent for 2019-2021 will be 9 respectively.

7/12.

1/14.

9 trillion, EPS is 1.03/1.

28/1.

58 yuan, the corresponding PE is 21 respectively.

2X / 17.

0X / 13.

8x, maintain “Buy” rating.

Risk reminder: the risk of waste incineration policy, the increase of operating costs, and the project progress is less than expected.