Hanlan Environment (600323): Non-profit growth rate of 20% in a single quarter and non-net profit in a single quarter hit a record high

Hanlan Environment (600323): Non-profit growth rate of 20% in a single quarter and non-net profit in a single quarter hit a record high

This report reads: The results of the three quarterly reports are in line with expectations, and non-net profit in a single quarter is a record high. Newly-produced projects contributed to the increase in performance and maintained an overweight rating.

Investment highlights: Investment advice: Maintain forecast that the company’s non-net profit for 2019-2021 will be 8.



700 million, corresponding to EPS 1.



39 yuan.

Consider the evaluation switch, giving the company 20 times PE in 2020, and raise the target price to 24.

80 yuan to maintain the “overweight” level.

The performance was in line with expectations, and the non-net profit in the single quarter was a record high, and the supplementary solid waste project was the main growth point of performance.

1) The company achieved revenue of 42 in the first three quarters of 2019.

6.9 billion, an increase of 19% before; net non-attributable profit7.

1.9 billion, an annual increase of 20%, performance in line with expectations.

2) The company deducts non-attributable net profit for the single quarter of 2019Q2.

7.2 billion, a record high.

The incremental performance was mainly contributed by Shunde, Langfang Phase II and Jiangxi Hazardous Waste Project.

The profit 淡水桑拿网 margin was stable, the asset-liability ratio increased slightly, capital expenditure continued to grow, and cash flow was good.

1) The gross profit margin for the third quarter of 2019 was 29.

5%, net interest rate 17.

1%, the ratio with 2019H1 remains stable.

2) Asset-liability ratio 63.

6%, a slight increase from the previous period.

3) Capital expenditure continued to increase, and the current period increased by 11 compared with the previous period.

600 million to 27.

100 million, large capital expenditures indicate that the peak period of project operation will come later.

4) Cash flow is good. The cash-to-cash ratio of 90% is similar to the previous period, and the net-to-cash ratio of 100% is up from 92% in the previous period.

The projects in progress proceeded smoothly and the hazardous waste business 杭州桑拿网 continued to develop.

1) Zhangzhou South Project, Nanhai No. 3 Plant Project and Nanhai Hazardous Waste Project are expected to be completed before the end of the year; 6 projects in cooperation with Shengyun Environmental Protection are actively progressing.

2) Following the Nanhai and Jiangxi hazardous waste projects, the company newly acquired Jiaxing Innovation Environmental Protection Technology Co., Ltd. in the third quarter of 201994.

91% equity, and invested in the hazardous waste disposal project in Pinghu Economic and Technological Development Zone. This project mainly uses the physical and chemical process to harmlessly dispose of liquid hazardous waste, a total of 3.

1 Initial / year, pay attention to the progress of subsequent projects.

Risk reminder: Changes in the subsidy policy of the waste incineration industry, and the project’s production progress exceeds expectations.