\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 323 Grandblue Environment Co.Ltd(600323) )
The annual performance is in line with expectations. The company achieved a total revenue of 11.78 billion yuan (YoY + 57.4%) in 2021; The net profit attributable to the parent company is RMB 2024.6 billion (including RMB 2021.6 billion + 1yoy 1.0 billion); The net profit attributable to the parent company was 230 million yuan (yoy-18.7%). The reasons why the annual net profit growth is lower than the revenue growth include ① the rising cost of comprehensive natural gas procurement and the upside down of natural gas price in the second half of the year; ② Green power company's 2021q2 garbage outward transportation subsidy is about 46 million yuan, which is not reflected in the cost reduction during the reporting period; ③ The preferential policies for epidemic situation will not continue; ④ The capacity utilization rate of newly put into operation organic waste treatment projects and industrial hazardous waste treatment projects is insufficient, and the profitability is lower than that of waste incineration power generation projects.
Solid waste and gas sub sectors achieved high growth. By sector, the solid waste treatment sector of the company achieved 6.57 billion yuan (YoY + 62.6%) in 2021, mainly due to the continuous operation of multiple solid waste projects; The gas business achieved 3.358 billion yuan (YoY + 79.2%), mainly due to the completion of the clean energy transformation project of building ceramics enterprises in Nanhai District, Foshan City, and the record high sales volume of natural gas (980 million m3, yoy + 57.2%) & the average sales price of natural gas increased; The water supply business achieved 910 million yuan (YoY + 7.7%), mainly due to the operation income of the new Dali Industrial wastewater pipe network and pump station; The sewage treatment achieved 410 million yuan (YoY + 36.4%).
The gross profit margin decreased and the expense rate decreased during the period. In 2021, the comprehensive gross profit margin was 23.0% (- 6.6pct) and the net profit margin in the same period was 10.1% (- 4.1pct). Both gross profit margin and net profit margin have declined, mainly because ① the utilization rate of newly put into operation kitchen and industrial hazardous waste production capacity is insufficient, and the profitability is lower than that of waste incineration power generation project (- 4.2pct). The company may seek a breakthrough in the field of resource utilization of hazardous waste. ② The sales and purchase prices of natural gas are upside down (the gross profit margin is - 12.3pct year-on-year). At present, the company has implemented some customer agreement procurement, and the selling price has increased, which is expected to turn around the loss from Q2. In 2021, the sales expense rate is 0.9% (- 0.2pct), the management expense rate is 4.9% (- 1.6pct), and the financial expense rate is 4.0% (- 0.4pct). The expenses are properly controlled. Excluding No. 14 and relevant reporting provisions, the net cash flow from operating activities was about 2 billion yuan, an increase of about 2.2% at the same time.
Vertical and horizontal integration of large solid wastes and expansion of new energy application layout. By the end of 2021, the scale of the company's domestic waste incineration power generation project was 34150 tons / day. Among them, the newly completed and confirmed income domestic waste incineration power generation project has a total scale of 8300 tons / day, and the scale of trial operation + Construction in progress + preparation project is 5300 tons / day, with continuous release of production capacity. In addition, the company carries out vertical and horizontal integration of "big solid waste" and asset light layout; In 2022, Foshan Nanhai hydrogen production project with a design scale of 2200 tons was launched, and the company actively explored the layout of new energy business.
Investment suggestion: the company has sufficient waste incineration projects in hand; The gas and water sectors grew steadily and provided excellent cash flow; The second phase of executive incentive deeply binds the interests of employees and the company, and helps the company develop rapidly. It is estimated that the company's net profit attributable to the parent company from 2022 to 2024 will be RMB 1.51/18.2/1.93 billion, and the corresponding PE will be 10.1/8.4/7.9x respectively. The company has excellent management and maintains the "buy" rating.
Risk tips: the production progress of solid waste projects is less than expected, the industry competition intensifies, the risk of policy changes, etc.
