Fresh environment (002573): Annual report performance exceeds expectations
Event: The company announced its 2018 annual report.
During the reporting period, the company achieved revenue of 40.
8.8 billion, net profit attributable to mother 5.
25 trillion, each extended by 0.
16% and 19.
45%, lower than expected, the original expected net profit attributable to mothers decreased by 5%.
The company announced the 2019 first quarter report.
During the reporting period, the company achieved revenue 7.
650,000 yuan, net profit attributable to mother 0.
98 trillion, with an annual interval of 24.
58% and 15.
Key points of investment: The overall scale of the business is stable. The intensified market competition has led to a decline in gross profit and lower than expected performance.
The company achieved operating income of 40 in 2018.
880,000 yuan, ten-year average of 0.
16%. Due to the intensified competition in the industry’s internal market, the cost of raw materials and labor services increased, and the gross profit margin of the integrated business was 28.
67%, lower than the same period last year.
Although the company continues to recover business funds and reduce financing scale, under the background of financial deleveraging, the industry’s financing costs have risen, and the company’s financial expense ratio has increased by 1.
13 budgets, finance costs reached 2.
At the same time, due to the aging growth of some receivables, the proportion of impairment losses increased, and asset impairment losses increased by 147 per year.
27%, reaching 0.
In the end, the company achieved net profit attributable to its mother5.
25 trillion, 19 years ago.
In the first quarter of 2019, the company’s revenue growth accelerated and the gross 合肥夜网 profit margin slightly changed to replace 28.
18%, the net profit attributable to the mother is zero.
98 ppm, with a ten-year average of 15.
The intensity of collections increased, and cash flow conditions continued to improve.
In 2018, the company strengthened the collection of corresponding accounts, and the net cash flow from operating activities reached 10.
60,000 yuan, compared to 75.82 million yuan in 2017, and cash flow from operating activities improved significantly.
Net cash flow from operating activities in the first quarter of 2019 was 3.
550,000 yuan, compared with 84.9 million yuan in the same period last year.
At the same time, the asset-liability ratio increased from 63 at the end of 2017 due to the reduction of project advances and the repayment of debts such as ultra-short 佛山桑拿网 financing.
31% fell to 53 on March 31, 2019.
30%, balance sheet repair. Outward mergers and acquisitions continue to expand geographically and in industry, and the company is still accumulating energy.
In December 2017, the company subscribed for 50% of German Puli Marine with cash of 1.87 million in cash, cutting into marine environmental protection.
In February 2018, the company subscribed for Beijing Bokete Technology10 with 5,904 million cash.
In April, the company jointly invested USD 100 million in cash with Guizhou Jinzhou Power, Zhejiang Guanghan Environmental Protection and Shenzhen Yichengda to establish Guizhou Qingwan Wanfeng Energy Technology.
In May, the Xiong’an New District was established.
In addition, in terms of business development, the company has also opened up in areas such as zero wastewater discharge, flue gas removal, and industrial water treatment.
In April 2019, the company received notice from the controlling shareholder Beijing Century Land Holdings Co., Ltd. and the actual controller, Mr. Zhang Kaiyuan, Century Land and is planning to allocate the transfer, and it plans to transfer the company to Guorun Environment25.
The 31% shares may involve changes in the controlling shareholder and actual controller of the company.
If the reorganization is in place, the company is expected to form a strong alliance with state-owned enterprises.
Earnings forecast and investment rating: According to the annual report, we lower the company’s forecasted net profit for the 19 and 20 years by 5, respectively.
41 (was 6.
2.6 billion), plus 2021 net profit forecast for mothers5.
67 trillion, corresponding to 19 times the 19-year PE estimate.
The company is the leader in the control of atmospheric smoke, and there is still room for non-electricity management, maintaining the “overweight” level.