Yingfeng Environment (000967): Steady growth in equipment sales continues to lead industry development

Yingfeng Environment (000967): Steady growth in equipment sales continues to lead industry development
I. Overview of the event The company released its 2019 Interim Report and achieved revenue of 6.1 billion times +4 in the first half of the year.5%, to achieve net profit attributable to the parent company6.400 million a year + 72%. 2. Analysis and judgment: The sales of sanitation equipment increased steadily. New energy sanitation vehicles, unmanned vehicles and other bright spots. Net Zoom Heavy Industry achieved net profit in the first half of the year5.3.4 billion, accounting for 83% of all profits.Among which sanitation equipment revenue is +8 for ten years.5%, lower than the first half of the sanitation vehicle 22.The 5% industry sales growth rate is considered to be mainly due to the company’s high-end product market share, while the first half of the low-end sprinklers, municipal vehicles grew faster.The subsequent conversion of new energy and environmental sanitation equipment to accelerate the upgrading of traditional fuel equipment, and the use of waste separation policies to drive meals and kitchen utensils. The effect of reducing the demand for garbage trucks has been significant.Sanitation service revenue increased by 68% annually. In the first half of the year, the company signed 13 new sanitation projects with a total contracted annual cost of 58/4.700 million, signing capacity increased by 1 compared to 2018.In addition, the company’s new energy sanitation equipment calibration has ranked first in the industry, incubating the world’s first 5G unmanned sanitation robot formation, and introducing Italy’s advanced organic wastewater treatment technology and project management experience to expand the kitchen waste disposal project.Relying on the strong strength of Yingfeng Capital, it continues to lead the development of the industry. Stripping off non-core business, focusing on the solid waste industry chain. In August, the company announced the transfer of 100% of wind power, division of wind turbines, electromagnetic lines, environmental management projects and other non-core businesses. This transaction is expected to generate 1.5.5 billion investment income.According to the agreement, the original monitoring business of Yuxing Technology will be undertaken by Guangdong Yingfeng Technology Company, and it shall not be engaged in monitoring business for five years.The company’s cash flow is expected to continue to improve, and in the future, it will focus more on the entire solid waste industry chain integrating sanitation robots, sanitation equipment, sanitation 武汉夜生活网 services, waste sorting and domestic waste terminal disposal. Significant improvements in quality and efficiency, cash flow needs to be improved in the first half of the company’s sales expenses, and management costs have been extended.0% and 13.5%, optimized personnel structure and good cost control.Although cash flow from operating activities increased by 41%, it was still -9.70,000 yuan, mainly due to an increase in operating receivables by 14.800 million, reducing payable items by 3.800 million, still needs to be improved in the future. Third, investment advice As an industry leader, the company will continue to benefit from the rapid growth of the large solid waste industry. As the company plans to divest non-core businesses, slightly adjust 2019?EPS to 0 in 2021.49/0.54/0.62, corresponding to the current expected 合肥夜网 PE14 / 13 / 11x, lower than the average forecast PE of the sanitation vehicle industry in 2019 of 17x, maintaining the “recommended” level. 4. Risk warnings: 1. Intensified competition in the sanitation market; 2. Difficulty in receivables; 3. Risk of impairment of goodwill.