Xin Rongchang (870984): The improvement in profitability is clearly attributed to the increase in net profit of the mother 116.


Xin Rongchang (870984): The improvement in profitability is clearly attributed to the increase in net profit of the mother 116.


Event: The company released the semi-annual report for 2019, and the company achieved total operating revenue1.

79 trillion, an increase of 66 last year.

67%, net profit attributable to mother is 5613.

310,000 yuan, an increase of 116 last year.


The rapid growth in the first half of the year results in the initial completion of the third-phase engineering hazardous waste incineration and hazardous waste incineration project of associated companies. At the same time, the gross profit margin for this period has increased steadily from the same period of the previous year.

A large-scale comprehensive industrial base for hazardous waste disposal and comprehensive resource utilization, fully qualified to operate 10 disposal projects: The company is an environmentally-friendly enterprise that specializes in the collection of hazardous waste, harmless disposal and comprehensive utilization of resources in the military.Industrial base for comprehensive hazardous waste disposal and comprehensive resource utilization.

The company holds the “Hazardous Waste Operation Permit” issued by the Guangdong Provincial Department of Ecology and Environment and the “Dangerous Goods Operation Permit” issued by the Zhaoqing Municipal Transportation Bureau.

Qualified for hazardous waste collection, transportation, storage, disposal and comprehensive utilization, operating ten treatment and disposal projects including heavy metal sludge (including fire method and wet method) and waste mineral oil.

The third-phase hazardous waste incineration and innocuous disposal project produced stable production and the company’s revenue reached 66.

67% growth: The company started base construction in 2009 and has completed all construction of the third 武汉夜生活网 phase of the project. Through 9 years of construction, the company’s annual hazardous waste treatment capacity has increased from 8 to 22 inches, and 10 independent treatment workshops.

Due to the completion of the hazardous waste incineration disposal project for the third phase of the project, the company broke through the throughput of harmless treatment, increased the processing capacity, and increased the number of treatment projects, driving the company to achieve revenue1.

7.9 billion (+66.


Strengthen independent research and development to master a variety of core technologies to ensure the company’s competitive strength: the company adopts domestic advanced processing equipment and comprehensive utilization technology, strict clean production management, and implements resource recycling, reduction 天津夜网 and harmless disposal of waste.
Ensure that the processing and utilization process will not cause secondary pollution to the environment.

Through continuous improvement of technology research and development, production capacity, provide a reasonable platform for the company’s rapid development.

In the report, a total of 5 authorized patents were obtained, including 1 invention patent and 4 utility model patents.

The research and development expenses of the company in 2019H1 are 1105.

480,000 yuan, an annual increase of 131.


Profitability has increased significantly, with gross profit margins rising8.

67pct: The company’s gross profit margin for 2019H1 increased steadily from the same period last year, reaching 53.

85% (+8.

67pct), mainly showing the effect of scale.

Under the combined effect of increased revenue and gross profit margin, the company’s return to its mother’s net profit has achieved rapid growth.

Among them, the net profit attributable to mothers in 2019H1 was 5,613.

310,000 yuan (+116.


In addition, the company’s net cash flow from operating activities increases by 3032 each year.

The amount of RMB 450,000 was mainly due to an increase of 7121 in cash received from the sale of goods in this period.

890,000 yuan.

Hazardous waste industry has a high degree of prosperity, and the tightening of regulations has led to the release of related demand: continuous and long-term rapid development of industry has led to the rapid increase in the amount of industrial hazardous waste.

With the tightening of supervision and the dumping of hazardous waste in the past, the phenomenon of underreporting has been gradually curbed, and the real needs of the industry are slowly emerging.

With the intensive release of favorable policies and the comprehensive coverage of the central environmental protection inspectors, the hazardous waste treatment industry is entering the stage of gold development, and the future development space is huge.

Investment suggestion: As of the latest, the company’s market value is 18 ppm, and the corresponding PE (ttm) is 13X.Suggest attention.

Risk reminder: environmental protection policy risks, actual controller risks of improper control