Evergreen Group (002616) Quarterly Report Comment: New Projects Trigger Continuously Increasing Performance and 99% Convertible Bonds Help Projects Under Construction Promote High Growth

Evergreen Group (002616) Quarterly Report Comment: New Projects Trigger Continuously Increasing Performance and 99% Convertible Bonds Help Projects Under Construction Promote High Growth
The event company released the third quarter report for 2019, with operating income of the first three quarters17.89 ‰, an increase of 21 per year.05%; net profit attributable to mother 1.93 ‰, an increase of 99 per year.06%; deducted non-net profit1.870,000 yuan, an annual increase of 120.99%; EPS is 0.26 yuan / share, an annual increase of 99.01%.Among them, the net profit attributable to the mother of Q1, Q2, and Q3 companies are 0.48, 0.48, 0.9.8 billion, the previous growth rate was 138.19%, 338.40%, 47.85%. Mancheng heating and environmental protection thermal energy projects led to growth in performance, and the net profit attributable to the mother in the first three quarters continued to increase by 99%. The company’s operating income in the first three quarters.89 ‰, an increase of 21 per year.05%; net profit attributable to mother 1.93 ‰, an increase of 99 per year.06%; gross profit margin 30.01% (28 in the first half).77%,南宁桑拿 compared with 20 in the same period last year.42%). The reported performance of the company has increased significantly. The preliminary results are as follows: ① In June 2018, the heating unit of the Mancheng Cogeneration Project basically met the stable operating conditions. In November 2018, the unit partially met the stable operating conditions. After the stable operation, the project load continued to increase.The profitability of the project increased; ② On July 1, 2019, the 2 × 15MW BOT project of the Phase III project (capacity expansion project) of the waste incineration power plant of the integrated waste treatment base in Zhongshan City Center basically met the conditions for long-term stable operation; ③ September 2, 2019On June 30, the components of Tancheng Evergreen Biomass Power Generation Project basically met the conditions for long-term stable operation. Until September 30, 2019, Tancheng Biomass has achieved a net profit of 267.620,000 yuan.The above projects have driven the company’s performance growth. The company plans to issue 800 million convertible bonds for construction projects. The projects under construction are rapidly advancing. According to the company’s interim report and production, the company’s projects currently under construction include Maoming, Xiongxian, Qujiang, Tieling, Yixian, Yongcheng, Xinye., Songyuan, Suining, Huaxian, Yanjin, Xiaogan, Funing, etc., investment scale potential.The company applied for the issuance of 800 million convertible bonds for the construction of Tieling, Yongcheng, and Lixian projects and supplemented the working capital; On August 23, 2019, the Securities and Exchange Commission’s Issuance Audit Committee approved the company’s application for public issuance of convertible bonds;After the issuance of convertible bonds, it will be conducive to advancing the project construction progress. As of the third quarter report of 2019, the company is under construction18.US $ 4.4 billion, construction projects are advancing at a rapid pace; through the gradual commissioning of new projects, the company’s performance promotes a higher growth rate. Accounts receivable increased compared with the beginning of the period. Capital expenditure increased. The company’s asset-liability ratio increased due to the report. The supplementary electricity charges to be settled increased, and the company’s accounts receivable increased to 5.2.4 billion, an increase of 154 over the beginning of the period.89%.In addition, while the company’s construction projects increased capital expenditure, resistance also increased. In the final three quarterly reports, the company’s long-term liabilities increased to 17.9.4 billion, an increase of 72 over the beginning of the period.85%; asset-liability ratio from 57 at the end of 2018.77% increased to 62.40%, but still at a reasonable level. Profit forecast: In accordance with the company’s guidance for the expected results in the third quarterly report, we adjusted the company’s profit forecast to return the company’s net profit to 3 from 19-19.36, 5.50, 7.1.6 billion adjusted to 2.98, 4.81, 7.16 megabytes, corresponding to 0 EPS.40, 0.65, 0.97 yuan, maintain “Buy” rating. Risk reminder: the price of product raw materials fluctuates, the project progress is less than expected, and the convertible bond issue fails