Yingfeng Environment (000967) Quarterly Comment: Net profit is increasing by 9 each year.3% employee shareholding + equity incentives highlight development confidence

Yingfeng Environment (000967) Quarterly Comment: Net profit is increasing by 9 each year.3% employee shareholding + equity incentives highlight development confidence
Focus on environmental protection, divest non-core businesses, and increase net profit by 9 per year.3% of the companies released the 2019 third quarter report: the company achieved operating income of 87 in the first three quarters.2.6 billion (previously -3.2%); achieve net profit of 9.820,000 yuan (ten years +9.3%), of which the net profit attributable to the parent company is 9.64 ppm. The increase in net profit is due to the company’s equipment sales and the 都市夜网 disposal of non-core business assets (upper wind and 100% equity of Ningxing Technology).1.5 billion.The company ‘s gross profit margin in the first three quarters increased short-term1.13 points, net operating cash flow -7.310,000 yuan (-19 in the same period last year.02 billion). The target 3 years is to deduct non-net profit of 5 billion. Employee shareholding + equity incentives highlight the company’s development confidence. The company announced that it plans to raise no more than 5.The $ 3.5 billion employee shareholding plan covers no more than 150 company executives and core technical backbones.At the same time, it is planned to grant 65.34 million stock budgets to 250 company executives and core backbones. The exercise conditions are to achieve a net profit of no less than 14,16 in 2019-2021, respectively.8,200,000 yuan, 南宁桑拿 the three-year performance totaled over 5 billion yuan, showing the company’s development confidence. Continue to consolidate the leading position of sanitation equipment, actively develop the sanitation operation and further waste disposal areas. The company’s equipment market share continues to lead, with an overall market share of over 20% in 2018. Sanitation operation services have been accelerating, and the total value of newly signed contracts in 2018 is 80. ppm, an increase of 80 in ten years.2%, ranked fourth in the top 100 of the South Division of Environmental Affairs.In terms of waste incineration, as of the end of 2018, the first phase of 4 projects in Lianjiang, Xiantao, Funan and Shouxian had been completed and put into operation.In the future, the company will focus on the field of napkin kitchenware waste treatment. Currently, it has won the food kitchenware projects in Huai’an, Jiangsu, Xiantao, Hubei, Foshan, Guangdong and other places. In September 2019, it won the bid for the kitchenware garbage treatment project in Lu’an.The field of disposal continues to expand. Benefiting from the high prosperity of the solid waste industry, with both capital and strength, maintaining the “Buy” rating is expected to the company’s EPS in 2019-2021 is 0.42, 0.52, 0.63 yuan / share, corresponding to PE at the latest closing price of 15 respectively.5, 12.5, 10.2 times, Yingfeng Environment is a leading domestic sanitation equipment company, quoting more and stronger equipment sales and industry-wide industrial chain layout advantages from its peers. The company’s compound growth rate will exceed 20% in 2019-2021.Value, corresponding to 8.A reasonable value of 31 yuan / share, benefiting from the high prosperity of the solid waste industry, the company has both capital and strength, and maintains a “buy” rating. Risk reminders: market competition intensifies; operation advancement fails to meet expectations; government investment scale declines.