Home 桑拿High Energy Environment (603588) In-Depth Research Report: Soil Remediation Leads to Promote Large-scale Solid Waste Advancement Today and Now-Discussion on Performance Stability and Growth

High Energy Environment (603588) In-Depth Research Report: Soil Remediation Leads to Promote Large-scale Solid Waste Advancement Today and Now-Discussion on Performance Stability and Growth

High Energy Environment (603588) In-Depth Research Report: Soil Remediation Leads to Promote Large-scale Solid Waste Advancement Today and Now-Discussion on Performance Stability and Growth
Soil remediation + large solid waste layout, all business areas are improving in 2018.The company has now formed a comprehensive layout of soil remediation + hazardous waste / large solid waste treatment. The three areas simultaneously increase the company’s 2018 revenue 37.60,000 yuan, an increase of 63 in ten years.2%; net profit attributable to mother 3.250,000 yuan, an increase of 69 in ten years.1%.At the same time, the company’s operating cash flow and cashback situation benefited from the increase in the proportion of operating business and the overall optimization of management efficiency.In 2018, the company’s new orders and capacity expansion will ensure future growth.In terms of soil remediation, in 2018, the company’s new environmental remediation orders increased by 99% to 21 ppm; in the hazardous waste sector, the company’s hazardous waste permits reached 50.3Every year / year, there is still room for growth in the future by maximizing capacity; 11 waste incineration projects are in progress with a daily processing capacity of 8,800 tons / day, and the project will gradually enter the operation period, hoping to contribute to stable growth and high-quality cash flow. Discussion 1: Short-term performance stability and growth trend: In terms of stability, the company’s operating business was transformed into acquisition and integration of hazardous waste projects. In 2018, the proportion of operating gross profit further increased by 6pct to 37%. According to the current regional layout of major projects, weIt is believed that events such as the relocation of chemical parks with the average benefits of projects in Zhejiang, Shandong, and Gansu, etc., catalyze the relocation and release of demand for hazardous waste disposal to increase capacity utilization.In addition, the high-quality waste incineration project has a higher and more stable performance. In terms of growth, the repair industry is not what it used to be. Whether it is a detailed investigation of the natural rhythm of gradual transition to governance, or the introduction of policies, a large increase in central repair funds and the relocation of chemical parks, all are expected to drive the market to accelerate growth.Through the calculation of the company’s supplementary orders and income, if the supplementary order maintains a relatively conservative growth rate of 30% in the next three years, the corresponding repair revenue can still achieve a compound high increase of about 45%.In addition, the company’s capital risk is reduced. Green bonds, project loans, and short-term loans of nearly $ 4 billion exceeded capital expenditures covering approximately $ 3 billion in 2019-20.If convertible bonds are converted into stocks in the future, higher debt ratios are also expected to be further optimized to less than 60%. Discussion 2: Factors affecting the long-term growth of the company: From the perspective of an externally-generated industry, the industry has a high ceiling and is sustainable.We refer to the development of soil remediation in the United States. Although the Super Fund Act was introduced for almost 40 years, the remediation and corresponding budget for the past ten years has remained at 10%.With a stability of USD 600 million, due to the remediation, the progress of detailed investigations varies, and pollution continues to occur, soil remediation is not an overnight effort.At the same time, the scale of land remediation for American companies reached 7.3 billion US dollars and corporate participation was as high as 90%. There is a huge room for further internal improvement. In addition, the internal investigation of cultivated land and the restoration and replacement are stronger.Form a good guarantee. From an endogenous perspective, the company’s project experience and technology form a comprehensive barrier, while the potential synergy of the comprehensive layout of solid waste promotes the expansion of growth space.At the current stage of the industry, the company’s market expansion capability is supported by the heaviest project experience and operating capabilities. The company’s billion-dollar projects account for about 40%, and at the same time cover small and beautiful orders in developed regions. In addition, rich technical reserves, comprehensive barriers to protect the market during the initial growth period.growing up.In the long run, referring to the development history of the leading restoration companies Japan Tonghe and the Netherlands FRGRO, the synergy effect of soil and solid waste in the region and business is a continuous increase in the size of the company.The company’s overall precision card location in the large solid waste field, the nationwide distribution of soil repair and hazardous waste resources, landfill capping and other businesses will be replaced in the future, which is expected to achieve high growth in the short term and long-term scale. Earnings forecast, estimation and investment rating: We expect the company to achieve net profit attributable to mothers in 2019-2021.4, 6.0 and 7.600 million (the original forecast for 2021 is 7).800 million), corresponding to PE is 15, 11, 8 times significantly underestimated, 天津夜网 according to the average valuation of various fields to get 21 in 2019.5 times the estimate, corresponding to 14.Target price of 0 yuan, maintain “strong push” level. Risk warning: Project and policy advancement is less than expected; intensified industry competition affects profitability.