Junxin Environmental Protection (872664): Solid waste treatment operations are operating stably New projects are driving growth

Junxin Environmental Protection (872664): Solid waste treatment operations are operating stably New projects are driving growth

Event: The company released its semi-annual report for 2019, and the company achieved total operating income5.

23 ppm, an increase of 59 last year.

81%; net profit attributable to mothers1.

92 ppm, an increase of 80 per year last year.

55%.

The rapid growth in the first half of the year, the preliminary related company’s holding subsidiary Puxiang Bioenergy Co., Ltd., which is responsible for the construction and operation of the Changsha Municipal Solid Waste Comprehensive Treatment (Clean Incineration) project, was officially launched in April 杭州夜网 2018.

Forerunner in urban solid waste treatment, leading in technology and industry experience: The company’s main business is sanitary landfill of domestic waste, treatment of leaking liquid, and treatment of municipal sludge.

The company currently owns the franchise rights of Changsha Municipal Solid Waste Treatment Plant mainly using TOT and BOT models.

According to the company’s official website, the total investment of domestic waste clean incineration project is 25.

8.6 billion yuan, covering an area of more than 450 acres, with an average daily incineration of 5,000 tons of domestic waste and an annual power generation of 5.

1.8 billion degrees, the annual electricity capacity is 4.

1.4 billion degrees.

Subsidiary’s project was formally put into operation, leading to rapid release of performance: The company’s subsidiary Puxiang Bioenergy Co., Ltd., which is responsible for the construction and operation of the Changsha Municipal Solid Waste Clean Incineration Project, officially started production in April 2018.Fly ash processing business.

Compared with the same period in 2018, the 2018H1 operation period is 2 months, and the 2019 operation period is 6 months. Revenue from waste incineration treatment business, power generation business and fly ash treatment business has increased significantly.

2019H1 achieves total operating income5.

23 trillion, an increase of 59 last year.

81%.

Gross profit margin increased by 2.

32pct, net operating cash flow increased by 168.

8%: The company’s gross profit margin for 2019H1 is 58.

16%, an increase of 2 over the same period last year.

32pct.

Primarily, the company’s subsidiary, Puxiang Bioenergy Co., Ltd., is responsible for the construction and operation of the Changsha Municipal Comprehensive Waste Treatment (Clean Incineration) project, which is in operation, and its business operations are stable.

At the same time, the net cash flow generated from driving the company’s operating activities was 247.59 million, an increase of 15547 from the same period last year.

950,000 yuan, an increase of 168.

8%.

The new project is being planned for preparation, and the expected increase in performance: In January 2019, the Changsha Municipal People’s Government and the company signed the “Sludge under the Changsha Municipal Solid Waste Treatment Plant Franchise and Asset Use Right Transfer Contract”Supplementary Contract for the Second Phase of Cooperative Disposal of Clean Waste Incineration with Domestic Refuse “, the second phase of the project of co-processing of sewage sludge and domestic waste clean incineration of Changsha City sewage treatment plant under construction年 1月1日起至2048年12月31日止;正在筹建中的长沙市城市固体废物处理场灰渣填埋场项目由公司作为业主单位采用BOT模式实施。
After the new projects are put into use in the future, it is expected to bring performance increase.

Investment suggestion: The company’s sludge project is a member of the national sludge treatment and disposal industry technology innovation strategic alliance; it has the core technology of municipal sludge disposal, domestic waste treatment, and waste leakage treatment and the leading technology research and development strength. It is a regionalWithin the faucet, we recommend paying attention.

Risk reminders: environmental policy risks, industry risks; acquisition, approval and implementation risks of urban solid waste treatment franchise projects

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