Hanlan Environment (600323): Underestimated environmental service providers continue to show continuous growth

Hanlan Environment (600323): Underestimated environmental service providers continue to show continuous growth

The event company released the 2018 annual report. The company issued an 18-year report and achieved operating income of 48.

48 ppm, an increase of 15 in ten years.

38%; net profit attributable to mother 8.

76 ppm, a 34-year increase of 34.

23%; net profit of non-attributed mother 7.

2.2 billion, an annual increase of 21.

51%; return on equity is 15.

94%; earnings per share 1.

14 yuan.

It is proposed that a cash dividend of 2 yuan (including tax) will be distributed for every 10 shares.

23%, nearly 10% more than we expected. The company has formed a full industrial chain of ecological and environmental services, covering the four major sectors of solid waste, drainage, water supply and gas.

In 18 years, the company achieved net profit attributable to mothers8.

7.6 billion, exceeding our estimate of 7.

Nearly 10% of 980,000 yuan, slightly higher than expected.

Selling expense ratio 1.

43%, a reduction of 0 per year.

23 PCT; overhead cost ratio 6.

79%, a reduction of 0 per year.

2 PCT, but due to the increase in financing costs, the company’s 18-year financial expense ratio increased by 0.

15 PCT to 4.

41%; long-term cost rate is 12.

63%, a decrease of 0.

28 PCT, effective cost control.

The “big solid waste” development strategy promotes the company’s rapid growth report growth and the company’s solid waste business income.

65 ppm, an increase of 24 per year.

23%, accounting for 36 of total revenue.

4% is the main sector of the company’s performance contribution, and the top priority of the company’s development.

The company continues to focus on the “big solid waste” development strategy. In the past 18 years, it has harvested in the fields of domestic waste treatment, kitchen waste treatment, and industrial hazardous waste treatment. At the same time, it has deployed to the front-end sanitation.The sludge treatment, kitchen waste treatment, industrial hazardous waste treatment, agricultural waste treatment and other complete large solid waste business development patterns.

The company burned a total of 436 garbage in 2018.

93 for the first time, an increase of 10 in ten years.

At 07%, the total capacity of the waste-to-energy project currently in hand exceeds 2.

7 Daily report / report; the internal Langfang expansion project (500 tons / day) was completed and put into operation, and the operation scale rose to nearly 1.

2 days / day; Nanhai (1500 tons / day), Jinjiang (1500 tons / day), Anxi (750 tons / day) and other upgrading and expansion projects and Kaiping (900 tons / day), Raoping (1000 tons / day)Day), Xiaogan (2250 tons / day) and other new projects are progressing smoothly, and will be put into production in 2019 and 2020. The company completed the current annual order production capacity of 2000-3000 tons / day, which is the basis for the rapid development of the sector.

In addition, the company started in November 2018.

700 million acquisition of 100% equity of Ganzhou Honghua Environmental Protection, and investment in Ganzhou Xinfeng Industrial Solid Waste Disposal Center project to increase the scale of hazardous waste disposal.

2Every year, successful expansion of hazardous waste outside the province is achieved; In January 2019, the Honghua hazardous waste project incineration, physical and chemical treatment center and landfill site (370,000 cubic meters) has signed a contract to treat the contract amount of nearly 60 million yuan;Foshan hazardous waste 淡水桑拿网 project, the company’s hazardous waste treatment capacity reached 16.

5 Every year, the company’s hazardous waste expansion pace is gradually accelerated. In the future, the inherent capacity of the company will be gradually put into operation and the continuous supplementary projects. The hazardous waste business is expected to become a new driving force for the development of the sector.

The water sector improved quality and efficiency, increased its operating capacity by about 20% in 19 years, and promoted performance growth. The company newly commissioned 20,000 cubic meters / day of sewage treatment capacity in 18 years, and completed 16 domestic sewage treatment plant upgrades.To further improve the integration of sewage treatment plants and networks, currently the scale of sewage treatment in operation is 60.30,000 cubic meters / day, with a capacity of 12 under construction.

50,000 cubic meters / day is expected to be put into production in September this year.

The total amount is reported, and the company has achieved sewage treatment settlement2.

1.3 billion tons, generating revenue 2.

3 ‰, a year-on-year increase of 22%, an increase in growth rate.

In addition, the gross margin of sewage disposal is 40.

40%, an increase of 3 per year.

13 PCT, significant improvement in profitability.

In the water supply business segment, the company strengthened water loss management in 18 years and achieved certain results. The fourth phase of the second water plant project has been smoothly advanced. At present, it has a total capacity of 1.25 million cubic meters per day and a capacity utilization rate of 94.


The company completed sales of water supply in 20184.

3.3 billion tons, realized revenue 9.

02 ppm; gross margin 31.

07%, an increase of 2 every year.


The company’s currently under construction project has a planned production capacity of 250,000 cubic meters per day. It is expected to be put into operation at the end of this year. It is currently one-fifth of the current operating capacity. The new capacity will be used to promote the rapid growth of the company’s water business.

Gas business grew 20.

33%, providing stable cash flow for the company. In 2018, the company focused on developing users in the ceramics industry and achieved results. Revenue from the gas business reached 17.

10,000 yuan, an increase of 20 in ten years.

33%, is the company’s second largest business segment; meanwhile, the gas business provides stable cash flow for the company, and replenishes ammunition in time for the company’s development.

In the total reported, the company achieved sales of natural gas4.

9.3 billion cubic meters, an increase of 18 in ten years.

00%; LPG sales volume 2.

54 for the first time, with an annual increase of 2.


The national energy structure is undergoing transformation. Natural gas is expected to become one of the most important clean energy sources, so gas demand will maintain rapid growth in the foreseeable future.

The company’s gas business is mainly located in Nanhai District, Foshan City. In the future, it will continue the possibility of industrial upgrading to develop industrial users, to take advantage of points and create new market opportunities.

The funds are in good condition. We are optimistic that the company’s long-term development company received all compensation for resettlement projects paid by the Nanhai District Government on December 28, 2018, totaling 14.

300 million US dollars, greatly complement the company’s liquidity.

As of the end of 2018, the company had cash and cash equivalents in hand12.

24 ppm; progressively realizing net operating cash flow.

52 ppm, an increase of 9 per year.


In addition, the company plans to issue convertible bonds with a scale of no more than 1 billion U.S. dollars for three projects including the expansion and expansion of domestic waste incineration power plants in the South China Sea, the reconstruction and expansion of the waste incineration power plant in Anxi County, and the domestic waste incineration power plant in southern Zhangzhou.

The company’s 19-year production capacity is expected to accelerate the release of performance. At the same time, the company’s inherent project stability is expected to increase. We raise the company’s 19-21 profit forecast and expect to achieve operating income of 55.

05, 62.

96 and 69.

320,000 yuan, net profit attributable to mother 9.

59, 11.
15 and 12.
800,000 yuan, EPS corresponds to 1.

25, 1.

45 and 1.

670,000 yuan, maintain “Buy rating”.