Evergreen Group (002616) quarterly report comment: Net profit margin hit a new high in the first quarter to continue the high growth trend

Evergreen Group (002616) quarterly report comment: Net profit margin hit a new high in the first quarter to continue the high growth trend
On the evening of April 25, the company released the 2019Q1 quarterly report.Company revenue for the first quarter of 20194.875 ppm, an increase of 17 in ten years.33%; net profit attributable to mother is 4803.70,000 yuan, an increase of 138 in ten years.19%; net profit after deduction is 4757.40,000 yuan, an annual increase of 287.twenty three%.The company expects that the net profit range for the first half of 2019 will be zero.93 ppm to 1.09 million yuan, a range of 200% to 250%. Commentary Following the overall improvement in performance in 18 years, the company continued its high growth trend in 19 years.2019Q1 company revenue 4.875 ppm, an increase of 17 in ten years.33%; net profit attributable to mother is 4803.70,000 yuan, an increase of 138 in ten years.19%; the factors of high performance increase are consistent with those of 18 years, including: 1, increase the performance of the central heating sector. The Mancheng project was put into operation in 18 years, and the revenue was 2 trillion and the net profit was 4190.70,000 yuan; plus the Maoming, Xiongxian and Qujiang projects expected to be put into production in 19 years, the central heating sector will continue to be the main source of incremental profits.2. The provision of bad debts for receivables for biomass supplementary electricity charges was relatively reduced.As the company did not provide a large amount of subsidies for uncollected bad debts in Q1 in 2019, asset impairment losses decreased by 47.94%, accounting for 3% of revenue from 18Q1.79% returned to 1.06%. Both gross profit margin and net profit margin increased significantly, cost and expenses were properly controlled, and the company’s refined management advantages continued to stand out.Benefiting from the increase in the revenue share of the environmental protection sector, the company’s gross profit margin in Q1 2019 was 28.07%, an increase of 6 over the end of 18.16 points, the best level since 16Q1; net profit margin 9.85%, an increase of 1 over the previous period.65pct, the best level since the company went public; the expense ratio during the period is 15.25%, a decrease of 0 from the previous period.8pct, in which the sales expense ratio decreased by 0.69pct, but the R & D investment continued to increase, and the R & D expense ratio increased by 0 compared with the previous period.09pct to 0.89%. The order reserve is sufficient, and the company will have high growth in basic demand this year and next.The 18 annual report shows that the company has put into production, construction and preparation of 44 environmental protection thermal energy projects, of which 6 are in operation, 8 are in operation, 5 projects are planned to start in 2019, and 25 projects have been contracted.A large number of projects in progress form the basis for the company’s high-growth environmental protection sector in the future.In terms of central heating and combined heat and power in the industrial zone, after the Mancheng project, four coal-fired cogeneration projects will be put into operation this year and next year to generate revenue. The Maoming project, which is second only to Mancheng, is gradually completed.With regard to biomass cogeneration, the quality of biomass power generation operation and management is high, the expansion of cogeneration has been successful, and the project has entered an intensive production period.The first biomass heat and power co-generation 厦门夜网 project, the Tancheng project (35MW), is about to be completed, and five other projects will be put into operation in 19 and 20 years. Issuance of 8 billion convertible bonds has significantly improved financing constraints.In February 19, the Securities and Exchange Commission sanctioned the company’s convertible bond issuance plan. In April, it provided feedback and the issuance proceeded smoothly.The company’s asset-liability ratio decreased by 1 from the previous period.31 points to 56.46%, taking into account its interest-denying costs, there is still room for leverage. Earnings forecast and rating: Maintain the previous forecast and return to the expected net profit of the parent in 19-21.36, 5.50, 7.16 megabytes, corresponding to 0 EPS.45, 0.74, 0.97 yuan, corresponding to PE is 17, 10 and 8 times. Risk reminder: the risk of fluctuations in the price of raw materials of the product, the project construction progress is less than expected, the replacement of biomass is less than expected, the risk of rising energy prices of the combined heat and power project in the industrial concentration zone, the increase in environmental protection requirements causes the project to be suspended, and the issuance of convertible bondsrisk