Hanlan Environment (600323): Hydrogen-like report structure is rich in foreign pricing trends with outstanding returns

Hanlan Environment (600323): “Hydrogen-like” report structure is rich in foreign pricing trends with outstanding returns

Highlights of the report The environmentally-friendly state-owned enterprise Hanlan Environment favored by Shanghai-Hong Kong Stock Connect & QFII is an environmentally-friendly state-owned enterprise favored by the northward capital and QFII among environmental 杭州桑拿 protection enterprises.

16% always lies in its steady income and profit growth, steadily increasing profitability and abundant cash flow.

The company’s revenue from 2009 to 2018 was 4.

700 million to 48.

500 million, compound growth rate of 27.

6%; net profit after deduction is not attributable to zero in 2009.

900 million to 7 in 2018.

200 million, compound growth rate of 22.

2%; the company’s cash-to-cash ratio (inflow of cash flow from operating activities / operating income) has remained above 100%, and the net-to-cash ratio (net cash flow from operations / net profit) has remained at 200% on average; ROIC & ROE has been steadily since 2014Increasing trends, reaching 10 in 2018 respectively.

3%, 15%.

  Steady and stable professional manager team The moral hazard (related to shareholders’ interests) of professional managers in enterprises is an important factor in the development of a large number of enterprises, and it is particularly prominent in state-owned enterprises.

Under the leadership of a high-quality management team, Hanlan Environment has a stable and stable operation and actively brings benefits to shareholders.(Acquisition) major shareholder assets), Jiangxi hazardous waste), Guicheng water plant relocation received additional relocation subsidies and another 50% of the land sale premium (15.

300 million) to ensure the project’s return on assets and stable cash flow.

  A typical “hydropower” report. The company’s business matching revenue growth and cash flow includes waste incineration, water supply and drainage, gas supply and hazardous waste treatment. Waste incineration and hazardous waste with high gross margins are the company’s future incremental profit sources.The company’s overall profitability will show an upward trend in the future.

The company’s waste incineration is currently in operation1.

43 statutory / day, scale under construction and preparation1.

2 Daily forecast value (estimated profit is about 400 million yuan), hazardous waste operation is harmless7.

2 nominal, under construction 9.

3 estimates (estimated profit is about 100 million), the average is expected to be put into operation in nearly 2-3 years.

The company’s fixed assets and intangible assets account for a relatively large amount of depreciation / street vendors each year, and the operating cycle is short. On average, the company’s net cash flow from operating activities is twice the net profit, similar to the hydropower report structure.

  Hanlan Environment’s equity includes an annualized return of 11.

5%, the premium of the logic of foreign exchange pricing is obvious. Here, the DCF method is used to estimate the Hanlan environment. Among them, for the BOT waste incineration and water supply and drainage business, the cash flow is calculated strictly in accordance with the franchise period.The compounded annualized return on equity is about 11.


Taking into account the continuous increase of foreign capital, it is assumed that the future pricing of Hanlan Environment refers to foreign logic, and the expected return rate of foreign countries is low. Under this logic, Hanlan 武汉夜生活网 Environment has room for increase.

It is estimated that the company’s net profit after deducting non-return to motherhood will be 8 in 2019-2021.

8 billion, 1.1 billion, 12.

300 million, the corresponding PE is 15x, 12x, 11x, given a “buy” rating.

  Risk Warning: 1.

The implementation of Nanhai Gas’s permitted rate of return policy leads to the risk of rate of return; 2.

Risks of lowering on-grid electricity prices for waste incineration.