This is the largest integrated water supply and drainage enterprise in Chongqing. The company's main business is tap water sales and sewage treatment services.
Company is a state-controlled professional comprehensive water service provider, focusing on the investment, construction, operation and management of urban water supply, sewage treatment and related water services industries. The company's market share in the water supply market and sewage treatment market in Chongqing's main urban area exceeds 80%. By improving its industrial capabilities, its business scale has begun to cover other provinces and cities, and it has gradually grown into a leading domestic water affairs and water treatment enterprise.
Performance Comments
The company disclosed its 2021 annual report on April 2 this year. During the reporting period, the company's total operating income was 7.252 billion yuan, a year-on-year increase of 14.22%; net profit attributable to the parent company was 2.078 billion yuan, a year-on-year increase of 17.13%; net profit after non-attribution to the parent company was 1.751 billion yuan, a year-on-year increase of 4.71%.
The company's revenue growth year-on-year exceeded the performance at the same time in the past two years. At the same time, the gross profit margin has also stabilized at more than 40%, and the profitability level has been maintained well. Although the asset-liability ratio has increased slightly, it has remained at a low level. cash flow is stable, and the overall financial structure is relatively stable.
The sewage treatment capacity has been significantly improved and it has entered the national water market.
The company's sewage treatment capacity has made great progress in the past few years. As of the end of 2020, the company's sewage treatment capacity has reached 3.57 million cubic meters per day, exceeding the " goals of the 13th Five-Year Plan.
Company has achieved full coverage of sewage treatment business in all districts and counties in the city through the acquisition of 19 sewage treatment plants owned by Chongqing Water Conservancy Investment Group and several other sewage treatment plants in the city. The daily sewage treatment scale has reached 296,000 tons/day, and the sewage production capacity has been significantly increased. With the improvement of sewage treatment capacity, the company began to gradually expand outside Chongqing and enter the national water market.
Comprehensive expansion of the market, the water environment industry chain is becoming increasingly complete
The company has increased its efforts to develop the market, and has successively expanded some rural water supply markets in Yubei District , Jiangbei District , and carried out Sichuan-Chongqing Water Affairs, Western Pipeline Network, Eastern pipeline network, quality water supply and other businesses, and won the bid for the Shajing sewage treatment plant project and Kunming Anning comprehensive water conservancy project infrastructure project. The water environment industry chain has gradually become more complete, its own advantages have been strengthened, and the industry's status has been further improved.
The country is increasing investment in water conservancy construction, and the company is taking advantage of the trend to improve the layout of Yunnan and Henan.
Our country will complete an investment of about 800 billion yuan in water conservancy construction this year. The deputy minister of the Ministry of Water Resources told the media that according to research by relevant institutions, every 1,000 yuan invested in major water conservancy projects 100 million yuan can boost the national GDP4 GDP growth by 0.15 percentage points. Therefore, water conservancy projects are one of the major projects that benefit the country and the people and are designated as key supports by the state.
Water conservancy project is one of the company's main businesses. In the Anning project mentioned above, the company will jointly establish a company with its partners to be responsible for the investment and financing, design, construction, operation and maintenance of the project. The company's investment in this project is in line with the national development strategy and will help improve the company's layout in Yunnan and Henan, expand market scale and enhance industry competitiveness.
Historical comparison
The company's historical high point occurred on June 5, 2015. The stock price hit a high of 13.35 that day. As of Friday's close, the company's stock price was only 5.86, which was 44% of the company's historical height.
The author looked back at the company's historical financial statements and found that in 2015, the annual revenue was 4.488 billion yuan and the net profit was 1.552 billion yuan. Today, these two figures have increased by 68% and 34% respectively, but the stock price has fallen by 56%.
If the impact of the unreasonable rise in the bull market in 2015 is discarded, is the company's current valuation still undervalued?
has already predicted this. According to the information available to the author, an institution predicts that its EPS from 2021 to 2023 will be 0.39 yuan, 0.43 yuan, and 0.47 yuan respectively, and the corresponding price-to-earnings ratios will be 15x, 14x, and 13x. The company's current dynamic price-to-earnings ratio is 13.54, which is slightly undervalued.
Company stock price historical position
Peer comparison
The company is in the water and water management industry. There are 41 companies listed in A shares (data source is Flush). The company's total market value ranks 1st, and its total operating income ranks 3rd. Parent net profit ranks 4th. (Although there are some undisclosed data in the table, the author believes that it will not have a big impact on the company's ranking)
can see that the company is in the first echelon of its industry, and its market value is generally not high. In the water affairs and water management industry, the company ranks first, with a market value exceeding the second place by 7.04 billion, which to a certain extent shows the company's right to speak in this field.
The industry median increase or decrease in the water affairs and water management sector in the past five days was an increase of 0.28%, but the company fell by 6.24%. The increase in Bohai shares, which has increased much in the industry, has reached 15.30%. The company’s recent announcement has no major negative events. , the stock price of has stagnated and the performance of is relatively obvious.
company's industry's rise and fall in the past five days are compared.
company's current price-to-earnings ratio (TTM) is 13.54, and the industry median is 23.84. The company's data is only 57% of it, ranking 8th in the industry, and is in a relatively low position. The price-to-earnings ratio (TTM) can make up for seasonal differences and serve as a good reference for the company's annual data. From this perspective, the company also has a certain investment value.
The company’s industry price-to-earnings ratio (TTM) comparison
Technical analysis
The company’s stock price is still in a downward trend after hitting a high on December 15 last year, but since late January, the stock price has begun to move within the box shown in the figure The shock mode is turned on in the middle, and the lower shadow of 4.8 pierces the annual line and then quickly pulls back, showing the support of the annual line. The Wulianyang that started on 3.28 may have scared away many people after two days of heavy volume decline. After continuing to fall on Friday, the main force began to pick up cheap chips. The volume and energy are also good. OBV has emerged from the golden cross . This It is the buying volume that is difficult to conceal that can manifest itself. Combined with the stock price approaching the lower edge of the box, the probability of another rebound increases. If the subsequent MACD can simultaneously rush to the zero axis and stand firm, the market may continue. If it falls below the support of the box, you should pay attention to the risks.
Recent stock price trend chart
Risk warning
The risks that need to be paid attention to are changes in sewage value-added tax collection, business expansion that is less than expected, and other factors.
Summary
The company’s sewage treatment capacity has been significantly improved and it has entered the national water market; by increasing market development, the company has gradually completed the water environment industry chain and further improved its status; the country will invest 800 billion yuan in water conservancy construction this year, and the company will invest in water conservancy. The project has improved the layout of Yunnan and Henan, expanded the market scale, and enhanced the competitiveness of the industry.
