\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 008 Beijing Capital Eco-Environment Protection Group Co.Ltd(600008) )
Event: in 2021, the company achieved an operating revenue of 22.233 billion yuan, a year-on-year increase of 15.65%; The net profit attributable to the parent company was 2.287 billion yuan, a year-on-year increase of 55.58%; The net profit deducted from non parent company was 1.634 billion yuan, with a year-on-year increase of 19.52%.
Comments:
The strategy focused on strengthening the main business of environmental protection, and the performance increased significantly. The company focused on the environmental protection industry and continuously consolidated the main business position of the environmental protection business. With the company’s solid waste disposal, the increase of water treatment capacity and the settlement of ecological environment projects according to the progress, the water price adjustment was completed by superimposing the stock water treatment projects in some regions, and the performance increased significantly. According to the company’s announcement, in 2021, the company will increase the water treatment capacity of about 1460400 tons / day, and the construction and operation scale of the new waste incineration power generation project will be 4000 tons / day. By 2021, the water treatment capacity of the company has reached 25 million tons / day, the total design scale of waste treatment capacity is about 14.37 million tons / year, and the total design scale of dismantling electrical and electronic equipment is about 3.2 million pieces / year. In addition, the company recognized an investment income of about 720 million yuan from the disposal of equity investment, including the transfer of 40% equity of Shenzhen water held by the joint venture general capital water investment (cancelled) to Shenzhen environmental water group, which increased the profit by 604 million yuan, and the disposal of 60% equity of Jiujiang capital profit pool, a subsidiary, increased the profit by 116 million yuan, which greatly promoted the substantial growth of the company’s performance.
Lean operation + fine management has steadily improved the company’s operating efficiency and profitability. The company continued to carry out refined management, focusing on the key links and elements of production and operation, strengthened capacity-building, promoted the improvement of project operation efficiency, promoted the improvement of quality and efficiency of stock projects, and significantly optimized the operation of stock projects in each business segment. Benefiting from the promotion of the company’s “lean operation + fine management”, as well as the rise of water treatment prices in some regions and the substantial growth of sewage and water treatment business income with high gross profit margin, the profitability of the company has been steadily improved. In 2021, the gross profit margin, net profit margin and roe of the company were 30.82%, 11.70% and 8.60% respectively, with an increase of 2.15, 0.88 and 3.37pct respectively compared with the same period in 2020.
The resource reserve of the project is sufficient, and the future performance is expected to continue to grow steadily. In 2021, the company added a total of 74 projects, with a contracted scale of 18.9 billion yuan. In terms of asset light projects, 51 asset light projects were acquired in 2021, with a total contracted scale of 12 billion yuan, an increase of 122% over the same period last year. Among them, there are 31 urban water business acquisition projects and 9 ecological environment business acquisition projects, with a contract scale of 5 billion yuan and 6.7 billion yuan respectively. In terms of heavy asset projects, a total of 23 heavy asset projects were obtained in 2021, with a contracted scale of 6.9 billion yuan. Among them, there are 21 newly signed projects in urban water business, with an amount of 5.3 billion yuan, and a new water treatment capacity of 950000 tons / day; Signed and acquired 2 incineration power generation business projects with a processing capacity of 4400 tons / day.
The strategic planning of “ecology + 2025” was promoted in an orderly manner to promote the steady and sustainable development of the company. The company comprehensively upgraded the business portfolio of “water, solid, gas and energy”. Based on the business layout of “water + solid waste”, the company optimized and determined the business portfolio of “5 + 4 + 1”, namely five basic businesses of urban water, solid waste treatment, atmospheric industry, ecological treatment and resources and energy, four value chain businesses of engineering technology, environmental protection equipment, intelligent environmental protection and asset management, and one supporting business of scientific and technological innovation. Among them, the atmospheric industry, environmental protection equipment and other businesses are carried out, and the company is realizing the first atmosphere through acquisition and integration, so as to complete the overall business layout of the company. Based on the past advantageous industries, the company continues to expand business areas, consolidate the company’s market competitiveness and explore the source of performance, so as to ensure the sustainable and steady development of the company in the future.
Continue to promote the issuance of REITs, effectively revitalize stock assets and promote the optimization of asset structure. In 2021, Wells Fargo’s first water REIT was successfully issued, which is the only one of the first batch of pilot public offering REITs with sewage treatment infrastructure as its basic assets. The successful issuance of the company’s REITs products will help the company revitalize the stock assets, optimize the debt structure and reduce financial risks. It is expected that in the future, the company will continue to promote the stock water assets to issue REITs products, further revitalize the stock assets, form a virtuous circle of investment, and help the company develop continuously and steadily.
Maintain the “buy” rating: with the steady promotion of the company’s water business and the rapid development of solid waste business, the company’s sustainable growth is guaranteed, and the issuance of REITs will effectively revitalize the stock assets. The company’s valuation is expected to improve and is optimistic about the company’s future growth. It is estimated that the company’s revenue from 2022 to 2024 will be 26.296 billion yuan, 30.54 billion yuan and 35.584 billion yuan respectively, with a year-on-year increase of 18.28%, 14.29% and 18.40% respectively; Considering the stabilization of the company’s business development and the stabilization of gross profit margin, it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.412 billion yuan, 2.822 billion yuan and 3.341 billion yuan respectively (it is predicted that it will be 2.546 billion yuan and 3.099 billion yuan in 2022 and 2023 before adjustment), with a year-on-year increase of 11.32%, 21.71% and 21.66% respectively. EPS is 0.35, 0.42 and 0.51 yuan respectively, and the corresponding PE is 9.4, 7.7 and 6.3 times respectively.
Risk tips: the policy promotion is less than expected, the macro-economy is more than expected, the market competition is intensified, and the project promotion progress is less than expected.
