Hanlan Environment (600323) Quarterly Report Comments: Deduct non-performance meets expectations of multi-channel financing project landing

Event: On the evening of April 25, the company released a quarterly report and achieved revenue of 12 in the first quarter.

54 ppm, an increase of 10 in ten years.

5%; net profit attributable to mother 1.

91 ‰, a decrease of 38 per year.

08%; net profit deduction for non-attributed mothers1.

83 ppm, a ten-year increase of 9.

72%.

At the same time, the announcement intends to issue ultra-short-term financing bonds of no more than 2.5 billion U.S. dollars, and it is planned to roll out in multiple installments within two years of the validity period of the approval.

The purpose of the raised funds includes, but is not limited to, repayment 南京夜网论坛 of interest-bearing debts of the company, replacement of bank loans, and other qualified uses.

Opinion: The deduction of non-performance is in line with expectations. The non-recurring profit and loss in the same period last year was distributed in the official kiln market, and the operating data continued to improve.

The non-recurring profit and loss of 2019Q1 was 7.47 million yuan, and the market revenue of the official kiln disposal in Q1 2018 was 160.49 million yuan. After deducting the amount of income impact and other items, the non-recurring profit and loss was 141.06 million yuan.

① The company has no new major orders in the first quarter of 2019, and the solid waste business generated 42.42 million kWh of electricity in 2019Q1, an increase of 13 per year.

74%, the online power is 35.921 million kWh, an increase of 13.
.

42%, due to the commissioning of new projects and the increase in the power generation of other power generation projects, the growth rate of the company’s power generation and grid-connected power in 2019Q1 exceeded 13%, significantly exceeding the growth rate of 2018Q1 data.

② The volume and price of the company’s sewage treatment business went up.

In 2019Q1, the company’s gradual water supply is 9377, which decreases by 2 every year.

9%, but the processing price starts from 2.

16 yuan / ton rose to 2.

18 yuan / ton.

The cumulative sewage treatment volume was the highest at 5217, an increase of 7 beyond.

At the same time, the average sewage treatment price in January-March 2019 increased by 11 compared with the average price in 2018.

34%, because in 2018, four sewage treatment plants have implemented new unit prices in accordance with the relevant agreements for upgrading and upgrading.

Waste incineration power generation has ushered in a period of intensive production, and hazardous waste projects have been replicated in different places.

According to our statistics, as of March 2019, the company’s equity capacity totaled 27,600 tons / day, of which 14,300 tons / day had been put into operation and 13,300 tons / day were under construction.

The new production capacity is expected to be 11,300 tons / day in 2019-2020, accounting for 79 of the currently operational capacity.

0% will significantly increase performance in the next two years.

In fact, the company is still actively replenishing orders to expand its production capacity. In 2018, the company added 4,550 tons of waste incineration to generate electricity, and most of them are expected to enter the production period in 2020.

The Xinfeng Hazardous Waste Project started trial operation in January 2019 and has contributed.

It has been put into trial operation in January 2019, and has signed a contract to deal with the disposal amount of nearly 60 million yuan on the report date, and the prospect is promising.

The company’s other Nanhai Hazardous Waste Project (51% holdings, Ruimandis holding 49% of the shares) has a disposal scale of 9.

3 The minimum annual wage is expected to be put into operation in the second half of 2019.

The company’s total hazardous waste treatment capacity is 16.

5 years / full year, after full production, it is still a big point for future performance.

SDIC Power’s shareholding + convertible bond assistance project promotion + planned to issue 2.5 billion ultra short-term financing bonds, future performance can be expected.

Relying on the resources of state-owned enterprises, which facilitates order competition and financing costs, the replication of the “Hanlan Model” will accelerate.

The company plans to issue 1 billion convertible bonds for the construction of three waste incineration power generation projects, and is currently waiting for a copy of the CSRC.

Adding US $ 2.5 billion in ultra-short-term financing bonds, the company has a high degree of certainty about the centralized production of solid waste projects, and its future performance can be expected.
Earnings forecast and rating: We expect to achieve net profit attributable to mothers in 2019-2021.
42, 11.

21, 13.

34 ppm, corresponding to PE is 13, 11, 9 times, maintaining the “buy” grade.

Risk reminder: Project progress is not up to expectations, convertible bonds, risk of unsuccessful issuance 北京夜网 of ultra short-term financing bonds