\u3000\u30 China High-Speed Railway Technology Co.Ltd(000008) 03 Bece Legend Group Co.Ltd(000803) )
Event: the company released the annual report of 2021. In 2021, the annual revenue was 827 million yuan, a year-on-year increase of 138.33%, the net profit attributable to the parent was 81 million yuan, a year-on-year increase of 78.38%, and the net profit not attributable to the parent was 79 million yuan, a year-on-year increase of 581.28%.
1. The layout of the whole industrial chain of food waste treatment industrial mixed oil UCO biodiesel production has been completed. As of March 2022, the company has become a rare listed company in China with a complete layout of the whole industrial chain of Biodiesel:
Upstream – the food waste treatment capacity has exceeded 3000 tons / day, with a year-on-year increase of more than 100%. The company’s catering projects focus on provincial capitals and other large and medium-sized cities, and build an exclusive waste oil collection network by occupying the stable catering waste treatment resources of core cities. According to the annual report of 2021, the company’s environmentally sound treatment business achieved a revenue of 146 million yuan, a year-on-year increase of 120.51%. The company has realized the investment layout of food waste treatment in more than 10 large and medium-sized cities. The subsequent company will continue to improve the capacity scale through bidding and acquisition, and the growth of food business is considerable.
The annual production capacity of UCO of midstream industrial mixed oil is expected to exceed 100000 tons, with a year-on-year increase of more than 200%. The company extracts and processes kitchen waste oil into industrial mixed oil UCO. According to the annual report of 2021, the company’s industrial mixed oil processing and sales business achieved a revenue of 160 million yuan, a year-on-year increase of 617.42%. With the improvement of the waste oil collection network, the company will increase the oil business volume. At present, the supply of UCO orders in 2022 will be at least 100000 tons. At the same time, the company will continue to improve the oil production rate of the project site and strive to become the leader of kitchen waste oil in 2 to 3 years.
When the downstream biodiesel production line is transformed, the annual production capacity is expected to reach 700000 tons. In February 2022, the company announced that it had signed a cooperation framework agreement with Shandong Binyang fuel and Chemical Co., Ltd. the company planned to establish a joint venture with Binyang fuel and Chemical Co., Ltd. to carry out cooperation related to the transformation of 400000 T / a diesel hydrotreating unit into second-generation biodiesel production project and the new 300000 t / a first-generation biodiesel processing and production project.
2. Core view: in the context of global carbon reduction, the demand for biodiesel is growing rapidly, and the supply of raw oil has increasingly become the main factor restricting the development of the industry. Since the beginning of 2021, the single ton price of UCO, one of the main raw materials of biodiesel, has risen from 6200 yuan / ton to more than 9000 yuan / ton. We believe that with the continuous increase of renewable energy demand in various fields outside China due to carbon reduction, the company’s future performance will benefit from its exclusive resource advantages in renewable raw materials. 3. Profit forecast & investment suggestion: according to the company’s annual report in 2021 and the continuously updated company’s production capacity and orders announced since the beginning of 2022, we raised the profit forecast. It is estimated that the company will achieve a revenue of RMB 1.779/29.223743 billion (value before 22-23: RMB 955 / 1606 million) and a net profit attributable to the parent of RMB 245 / 440 / 582 million (value before 22-23: RMB 200 / 415 million), corresponding to EPS 1.5 billion 02 / 1.83/2.42 yuan / share (22-23 years ago: 0.82/1.71 yuan / share). Maintain the “buy” rating. Risk warning: international war risk; The progress of kitchen project is less than expected; Risks of changes in environmental protection industrial policies and local subsidies; Risk of changes in heating charge price and heat source price; Risk of adjustment or termination of heating operation right; Capacity expansion is less than expected; Goodwill impairment risk; Stock price change risk
