\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 323 Grandblue Environment Co.Ltd(600323) )
Event: Grandblue Environment Co.Ltd(600323) released the annual report, and the company achieved an operating revenue of 11.777 billion yuan in 2021, a year-on-year increase of + 57.41%; The net profit attributable to the parent company was 1.163 billion yuan, a year-on-year increase of + 10.01%, and the net profit attributable to the parent company after deduction of non-profit was 1.124 billion yuan, a year-on-year increase of + 10.17%.
Comments:
Solid waste business expanded rapidly and performed well. During the reporting period, several solid waste projects of the company were put into operation, and the new capacity of waste incineration was huge. In 2021, the treatment scale of the company’s new domestic waste incineration power generation project was 8300 tons / day, and the scale of the projects put into operation reached 25550 tons / day, with a year-on-year increase of 48.12%. In addition to the significant growth of production capacity, the capacity utilization rate of waste incineration project has also increased steadily. In 2021, the company’s power generation per ton of waste / on grid power consumption per ton of waste increased by 5.32 degrees and 6.96 degrees respectively year-on-year, reaching 384.72/323.67 degrees. At the same time, the scale of organic waste and industrial hazardous waste treatment increased steadily, the income of Environmental Sanitation Business and engineering increased, and the whole solid waste treatment sector performed well: during the reporting period, the company’s solid waste treatment sector achieved a revenue of 6.568 billion yuan, accounting for 57.27% of the company’s main business income, with a year-on-year increase of + 62.62%; The net profit was 717 million yuan, accounting for 60.41% of the company’s net profit, with a year-on-year increase of + 27.18%.
The rising procurement costs caused losses in the energy sector, which is expected to reverse from the second quarter. Benefiting from the completion of the clean energy transformation project of building ceramics enterprises in Nanhai District, Foshan City, the company completed 987 million cubic meters of natural gas sales throughout the year, an increase of 57.18% year-on-year, a record high. However, affected by the continuous rise of international energy prices, the comprehensive procurement cost of natural gas is rising, and limited by the price limit policy, leading to the inversion of natural gas procurement and sales prices among large users in the second half of the year, resulting in losses in the second half of the year. At present, the company has actively taken countermeasures. The gas purchase price of industrial customers has increased in mid and late March. It is expected that the upside down of the price difference between purchase and sales of natural gas is expected to be improved and the profitability of natural gas business is expected to be reversed from the second quarter.
The “big solid waste” strategy continues to be promoted, and the company’s performance is expected to continue to grow in large quantities. In 2022, the company will continue to promote the “big solid waste” strategy, implement the two guiding ideology of “scale first” and “capital first”, and expand its scale and advantages. By the end of 2021, the scale of the company’s uncompleted projects of waste incineration power generation has totaled 3300 tons / day. It is expected that the company’s solid waste treatment capacity will still increase significantly during the 14th Five Year Plan period. With the improvement of operation capacity and operation efficiency, the company’s performance is expected to usher in sustained and large-scale growth.
Profit forecast and investment rating: it is predicted that from 2022 to 2024, the net profit attributable to the parent company will be RMB 1.38/16.1/1.9 billion respectively, with a year-on-year growth rate of 18.3% / 17.1% / 17.8% respectively; Based on the closing price on March 31, PE was 11.1 / 9.4 / 8.0 times respectively, maintaining the company’s buy rating.
Risk warning: the expansion of the project is lower than expected; A sharp decline in on grid electricity prices, etc.
