Hongcheng Water (600461) released a comment: benefit from water price adjustment 19 years performance increased by 40% -60% in ten years

Hongcheng Water (600461) released a comment: benefit from water price adjustment 19 years performance increased by 40% -60% in ten years

Expected performance growth of 40% -60%.

The company released the 2019 performance forecast, and expects to realize net profit attributable to mothers in 20194.


370,000 yuan, an annual increase of 40% to 60%.

The 杭州桑拿网 performance increase was mainly due to the increase of the company’s water price by 0 from November 1, 2018.

45 yuan / ton (up 28 from previous years.

5%) to increase revenue from water supply business, part of the second phase of sewage treatment and expansion and upgrading projects put into operation and increase in reported gas sales volume led to increased gas sales revenue.

The non-public offering was completed, and the scale of the sewage treatment business accelerated.

The company’s non-public offering was completed in November 2019, and the fundraising was 8.

94 billion is accelerating the standard expansion and construction, and it is expected to increase sewage treatment capacity by 10 per day.

As of the end of 18, the company’s sewage treatment capacity was 236.

Every day, the company is expected 杭州桑拿 to put into operation a sewage treatment capacity of 18 per day in 19 years, and will continue to win the bid for a sewage treatment project (July 19, Liaoning Project 2020 1).

5 daily / day scale, long-term 3 months / day, Jan. 20 pre-bid Nanchang 40 scale / day scale), the company’s sewage treatment scale accelerated expansion.

Shares were granted to 15 executives and core backbones to bind the interests of the company’s shareholders.

The company’s annual stock incentive plan for 2019 is 588.

50,000 shares have been granted, and the grant price is 3.

05 yuan / share.

Follow-up unlocking conditions are linked to performance evaluation targets: the average annual ROE in 2020-22 is not less than 9%, the compound revenue growth rate is not less than 10%, and not less than the 75th place value of the benchmark company, and the dividend is 2020-2022The proportion is not less than 40%, which highlights the company’s long-term incentive mechanism.

The trend of three-wheel drive of water supply + sewage + gas continues, maintaining the “buy” level.

It is expected that EPS for 2019-2021 will be 0.

53, 0.

66 and 0.

79 yuan / share, corresponding to PE at the latest closing price of 11 respectively.

3, 9.

1, 7.

6 times.

The price increase of water supply has been completed to enhance the profitability of assets. The fixed increase will help the expansion and upgrading of sewage plants. The Three Gorges Group increased its holdings4.

9% look forward to follow-up business collaboration.

It is expected that the company’s performance in 2019-2021 will still maintain a compound growth rate of more than 20%. We give the company 12 times PE estimation in 2020, which corresponds to a reasonable value of 7.

91 yuan / share, maintain “Buy” rating.

risk warning.

The financing environment has been tightened, the price adjustment progress after the upgrading of sewage has fallen short of expectations, the cost of gas has increased, and downstream demand has fallen short of expectations.