Wang Neng Environment (002034) 2018 Annual Report Review: 2019 ushers in peak production capacity, 18 annual report performance is lower than express

Wang Neng Environment (002034) 2018 Annual Report Review: 2019 ushers in peak production capacity, 18都市夜网 annual report performance is lower than express

The performance of the company’s 18-year report is lower than that of the express report, or there is a divergence in the judgment of the operation status of some waste incineration projects in Q4.

On-going projects are progressing smoothly. In 2019, we will usher in a peak period of capacity production and no worry about capital reserves.

Investment Highlights: Maintain the “overweight” rating.

Net profit is expected to be 4 in 2019-2021.

19 (maintained) / 5.

25 (maintained) / 6.

3.1 billion, corresponding to an EPS of 1.

01/1.

26/1.

51 yuan.

The company’s core growth logic for the next five years lies in the gradual release of reserve capacity and the further improvement of profit margins.

Taking into account the good quality of the company’s performance and the flexibility of its production capacity, it gave 25 times PE in 19 years and raised its target price to 25.

3 yuan, 30% upside from the previous closing day, maintaining the “overweight” level.

18 annual report performance is lower than the express report.

Compared with the quick performance report, the income is reduced by 0.

6.7 billion to 8.

360,000 yuan, attributable net profit decreased by 0.

26 ppm to 3.

0.6 billion.

The deduction of non-net profit has not reached 300 million of the asset injection performance commitment, but the 17-18 deduction of non-net profit has not reached the asset injection performance commitment and 5.

4.7 billion, still higher than the two-year two-year commitment.

4 billion.

Or due to differences in the operation status of some waste incineration projects in Q4.

Performance growth = capacity growth + margin improvement.

The company’s attributable net profit growth rate increased by 22% in 2018 (after excluding assets that have been set aside), driven by ① 1300 tons of new production capacity (Tianli + Taizhou) gradually operating in 2017; ② 800 tons of production capacity increased (Lanxi + Shantou) in 2018③ The company’s overall gross profit margin reached 52.

13%, an increase of 5 a year.

14 points; net profit margin 37.

27%, an increase of 4 a year.

47 points.

Mainly benefited from the investment and depreciation of the tonnage of each second-phase project.

The project in progress is progressing smoothly and the 重庆桑拿网capital reserve is worry-free.

The company’s overall waste incineration has a total capacity of 28450 tons / day. As of 2018, 10,250 tons / day of projects have been put into operation. In 2019, it will usher in a peak period of capacity production.

Construction in progress by the end of 201916.

2.5 billion, asset-liability ratio 41.

1%, the highest level in the industry, with cash in hand8.

36 billion.

Proposed to be issued no more than 14.

500 million convertible bonds funded 5 waste incineration projects, and multi-channel financing support projects were advanced rapidly. Risk reminder: Changes in the subsidy policy of the waste incineration industry, and the project’s production progress exceeds expectations.