Hanlan Environment (600323): Deducting non-performance growth of 20% The proposed acquisition project will further increase the scale of operations

Event: The company released the third quarter report of 2019, and the company achieved operating income from January to September 42.

69 ppm, an increase of 19 in ten years.

05%, achieving net profit of return to mother 7.

3.6 billion, a decrease of 0 a year.

99%, net profit after deduction to mother 7.

19 ppm, an increase of 20 in ten years.

18%; The company achieved operating income of 15 in the July-September quarter.

99 ppm, an increase of 23 in ten years.

38%, net profit attributable to mother 2.

75 ppm, an increase of 12 in ten years.


Core point of view The performance is in line with expectations: The driving force for the company’s continuous increase in revenue 杭州桑拿 is mainly from the solid waste sector. The commissioning of the Langfang project (commissioning in the second half of 2018) has brought about performance gains.The Zhangzhou project has entered the commissioning stage. The Nanhai Waste Incineration Plant No. 3 project has been completed. The Foshan hazardous waste project is expected to be completed by the end of the year. The Jiangxi Ganzhou hazardous waste project will be put into operation this year.

The mismatch in the growth rate of the company’s net profit after deduction and non-deduction net profit was mainly due to the allocation and disposal of the official kiln market from January to September 2018. The company’s investment income reached 9278.

RMB 870,000 (The investment income in the first three quarters of 2019 was 4,552.

550,000 yuan).

Acquisition of waste incineration projects continues to advance: The company intends to acquire 4 waste incineration projects under construction in Shengyun Environmental Protection (a total of 3,500 tons / day), and it has reached an agreement and will soon sign the “Asset Transfer Agreement” for related projects.At the same time, the company also announced that it plans to acquire the second phase of Huaian City’s municipal solid waste incineration power generation project (800 tons / day).

At present, the company has a waste incineration project with a scale of 2.

35 announcements / day, if the acquisition is completed, the total size of the company will increase by 18.


The high prosperity and large solid waste sector has strong self-hematopoiesis: the company’s own hematopoietic capacity is strong, the operating cash flow exceeds the coverage of capital expansion and the operating cash flow is highly matched with revenue.

As of the end of September 2019, the company had cash in hand of 11.

38 trillion, and we predict that operating cash flow will exceed 18 trillion in 2019-2020.

We are optimistic about the company’s potential for expansion in the large solid waste sector.

Financial projections and investment recommendations do not consider the impact of the acquisition, and we maintain a net profit of 9 to 2019-2021.



200 million forecasts.

Based on comparable companies’ 2019 PE 18x, the target price is 23.

04 yuan, to maintain buying.

Risk prompts waste incineration project commissioning progress is not up to expectations