Xingrong Environment (000598) 2019 Third Quarterly Report Review: Performance Meets Expected Policies Welcomes Favorable

Xingrong Environment (000598) 2019 Third Quarterly Report Review: Performance Meets Expected Policies Welcomes Favorable

Core views The first three quarters of results are in line with expectations.

The overhead rate is reduced by 0 every year.

With 51 assets, the asset-liability ratio decreased by 46.

63%; favorable water industry policy is expected to lead 佛山桑拿网 to improved performance; we maintain 2019?
In 2021, the EPS will be 0.



44 yuan with a target price of 7.

42 yuan, maintain “Buy” rating.

   The first three quarters of results basically met expectations.

The company achieved operating income of 32 in the first three quarters.

84 ‰, an increase of 9 in ten years.

22%; realized net profit of return to mother 9.

33 ppm, a ten-year increase of 9.

88%; basic profit income is 0.

31 yuan, an increase of 10 in ten years.


   Water and environmental protection two-wheel drive, improved control efficiency.

The company’s water and environmental protection sector has developed steadily. As of the end of June 2019, the scale of water supply and drainage projects under construction and planned to be built exceeded 770 tons / day, the scale of waste incineration power generation projects was 9,300 tons / day, and the sludge disposal project was 2,580 tons / day.With 5,630 tons / day of waste seepage treatment project and 98 interventions / day of recycled water project, the scale of water and environmental protection business ranked first in the west.

With the increase of the capacity of the Longfeng Project, the company’s waste-to-energy business has gradually strengthened its performance support role.

From the perspective of period expenses, the company’s management expense ratio and period expense ratio have dropped twice.


63 units, the company’s management and control efficiency has improved.

Affected by the “14 Xingrong 01” expiry, the company’s asset-liability ratio decreased by 2 compared with the end of June.

88 up to 46.

63%, financial status remains good.

   The water industry has ushered in the east wind of policy, and its performance has improved.

In October this year, Sichuan Province issued the “Implementation Plan for Three-Year Actions for Improving Quality and Efficiency of Urban Sewage Treatment in Sichuan Province (2019-2021)”, which proposed to accelerate the construction and upgrading of sewage treatment facilities and accelerate the treatment of black and odorous water in urban built-up

The expansion of incremental projects and the improvement of existing projects’ quality and efficiency measures The demand for wastewater treatment has been continuously released. The company is backed by Chengdu Environment Group, which has advantages in terms of capital and individual capabilities. The replacement of incentives has gradually brought about improvements in operating efficiency.Performance ushers in good development opportunities.

   Risk factors: The off-site layout and overseas development are less than expected, the progress of projects under construction is gradually expected, and the incentive mechanism is pushed forward slowly.

   Investment advice: Consider the first three quarters of results in line with expectations, maintain 2019?
EPS forecast for 2021 is zero.



44 yuan, the current sustainable corresponding P / E is 13/12/11 times respectively.

The company’s water sector has a solid high-level advantage. Environmental protection businesses such as sewage treatment, waste incineration and power generation have developed rapidly, and mixed reforms and incentive plans have released growth momentum.

Reference comparable companies have given a 20x target P / E for 2019 with a corresponding target price of 7.

42 yuan, maintain “Buy” rating.