\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 008 Beijing Capital Eco-Environment Protection Group Co.Ltd(600008) )
Event:
Recently, the company released the first quarterly report of 2022. During the reporting period, the company achieved an operating revenue of 4.72 billion yuan, a year-on-year increase of 8.38%; The net profit attributable to the parent company was 314 million yuan, a year-on-year increase of 1.38%; Deduct non net profit of RMB 300 million, with a year-on-year increase of 7.84%. According to our analysis, the company's current business was slightly lower than expected due to the impact of the epidemic, but it still did not change its judgment on the company's annual performance.
Comments:
The net profit increased again year-on-year, the gross profit remained stable, and the expenses decreased slightly during the period.
The company's net profit attributable to the parent and net profit deducted from non attributable to the parent in the first quarter increased by 1.38% and 7.84% respectively year-on-year, returning to the growth momentum; The gross profit margin of the company reached 32.1%, with a year-on-year increase of 1PCT and a month on month decrease of 1.2pct, maintaining a stable trend; The expense rate during the period was 19.6%, with a slight decrease of 0.2pct year-on-year and 0.3pct month on month.
The net cash flow generated by the company's operating activities in the first quarter was -606 million yuan, a year-on-year decrease of 652%, which was disclosed as the difference in project settlement time and the requirement of accounting standards for business enterprises that the construction expenditure during the construction of PPP project should be regarded as the cash flow expenditure of operating activities.
Water operation supports the middle stream of performance.
The company's water operation business is stable and continues to support its performance. According to the annual report of 2021, the total scale of sewage and water supply operation of the company is about 25 million tons / day, with a revenue of 7.68 billion yuan, accounting for 34.5% of the annual revenue; Contributed gross profit of 2.7 billion yuan, accounting for 39.6% of the total gross profit; The gross profit margin reached 35% and was in the range of increasing year by year. In the future, the water operation business will continue to be the mainstay of stabilizing the company's performance.
The high growth trend of solid waste remains unchanged, the incineration is put into operation quickly, and the environmental sanitation company makes a big order.
Although the market space in the incineration field has been gradually filled, the company's project reserve under construction / preparation is still maintained at more than 10000 tons / day, and it is still in the rapid operation period in the next two years. The company plans to put into operation the incineration capacity of 6600 tons / day in 2022. The rapid operation rhythm of incineration projects in the next two years is expected to continue and promote high performance.
In 2021, the newly signed environmental sanitation project of the company added an annual service fee of 127 million yuan. Since 2022, the company has successively won a series of environmental sanitation orders in Haishu, Ningbo, Qixia, Shandong and Yongzhou, Hunan. The annual service fee is calculated to exceed 70 million yuan, and the rapid development trend of environmental sanitation is still continuing.
Investment suggestion: Although the company's performance was slightly lower than expected due to the impact of the epidemic in the first quarter, the company's water operation business is relatively stable, and the high growth trend of solid waste performance remains unchanged. We judge that the company's annual performance can still be unaffected after the repair after the epidemic. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.26 billion yuan, 2.8 billion yuan and 3.09 billion yuan respectively, corresponding to EPS of 0.31 yuan, 0.34 yuan and 0.43 yuan, maintaining the target price of 4.48 yuan and continuing to give a "buy" rating.
Risk tips: the epidemic situation repeatedly affects the operation risk, and the water and solid market competition intensifies the risk, etc
