Aofu Environmental Protection (688021) Performance Express Review Comments: The company’s performance is stable and it is good to seize the standard transformation approach into a period of rapid growth

Event: The company released the 2019 annual performance bulletin announcement: The company achieved operating income of 26,807 in 2019.

830,000 yuan, an increase of 7 every year.

98%; net profit attributable to mothers was 5,144.

340,000 yuan, an increase of 10 every year.

01%; net profit attributable to owners of the parent company to replace non-recurring gains and losses was 4,869.

0.94 million yuan, up 12 every year.


  Analysis: The company’s overall operating conditions are stable and improving. Export growth and the National Six Standards boost overall performance. The forecast shows that the company’s operating conditions are stable and improving in 2019. Overall sales revenue has increased compared to 2018, and revenue growth has increased by 8%.Net profit increases 南京桑拿论坛 by 10% every year.

The growth of performance in 2019 is mainly due to the increase in export sales and the implementation of the Sixth National Standard: According to the company’s prospectus, the company’s overseas sales revenue in the first half of 2019 has reached 2943.

450,000 yuan (22% of revenue).

48%), more than 2276 in 2018.

920,000 yuan (9% of revenue).

17%). At the same time, the domestic sales revenue of National Six products in the first half of 2019 was 372.

930,000 yuan, 2503 export revenue.

220,000 yuan, totaling 2876.

150,000 yuan (21% of revenue).

97%), and the company’s sales of national VI products in 2018 accounted for only 6 of the revenue.

77%, basically it can be seen that the growth of export sales and the growth of the sales volume of products of the sixth country have helped the company’s 深圳桑拿网 performance to rise.

  Technical advantages and capacity expansion advantages provide the company with a guarantee of market share. The company has accumulated many years of experience in the air pollution control industry, built a variety of advanced key technologies such as formulas, molds, and firing, and formed a relatively complete technical system.It is a large-sized honeycomb ceramic carrier that is the core component of diesel vehicle exhaust treatment. It breaks the monopoly of large-sized honeycomb ceramic carrier manufacturing technology by foreign manufacturers in the past, replacing internal blanks and being competitive.

The company was listed on the Science and Technology Innovation Board in November 2019 and successfully raised 45712 funds.

These funds will be used to construct new production capacity totaling 9.6 million liters / year, including an annual output of 4 million liters of DPF carriers, 2 million liters of DOC carriers, 1.6 million liters of TWC carriers, and 2 million liters of GPF carriers.

According to the company’s prospectus, the company’s production capacity in 2018 was 612.

50,000 liters, and gradually increase production capacity. The company’s production capacity will exceed 15 million liters / year in the past two years.

  Benefiting from the implementation of the National Sixth Standard, the company’s performance will gradually enter a new level. The domestic automobile exhaust emission standards are gradually being upgraded from the National Five standard to the National Six standard. The market space brought by the standard upgrade has increased by about three times, but foreign manufacturers have given the Chinese market.Providing sufficient supplementary production capacity gives the environmental protection opportunities of OFO Environmental Protection to increase market share.

As the leading domestic honeycomb ceramic carrier, the company aims at the opportunity of standard conversion, promotes technology research and development, expands production capacity construction and rich product categories, and seizes market share.

According to GB18352.

6-2016 and GB17691-2018, the national six standard for light and urban vehicles will be implemented on July 1, 2020, and the national six standard for heavy-duty diesel vehicles will be implemented on July 1, 2021. The company’s main products are expected to be large in sizeSales of honeycomb ceramic carriers will increase from 2021.

  Profit forecast and investment rating companies benefit from standard upgrades, while further expanding production capacity and seizing market share, according to market and company conditions, the net profit attributable to mothers in 2019-2021 will be adjusted from 56.3 million yuan, 8497 million and 14,414 million to 5138, respectively Ten thousand yuan, 84.43 million yuan, 142.77 million yuan, the annual growth rate was 10%, 64%, 69%, and EPS were 0.

66 yuan, 1.

09 yuan, 1.

85 yuan, the closing price on February 25, 2020 corresponds to the PE of 2019-2021 is 71X, 43X, 26X, maintaining the “Buy” rating.

  Risks indicate that the implementation period of the National Six Standards is extended, and the implementation intensity is less than expected; the risk of penetration of changes in commercial vehicle production and sales.