After sorting out the semi-annual reports of 6 listed enterprises, how can the waste incineration industry make money?
Recently, the listed companies to disclose semi-annual report in 2024, the sanitation of science and technology network compiled six waste incineration enterprise's financial data, roughly as follows: (listed in the following data, in addition to the everbright green environmental protection for the "hk", other enterprises are the "yuan"; Net profit is net profit attributable to parent)
(1) Everbright Green (1257) : Revenue was HK $3.506 billion, -8% YoY; Net profit was HK $144 million, -45% year-on-year.
(2) Zheneng Jinjijiang Environment (BWM) : Revenue was RMB1.753 billion, representing a year-on-year increase of -9.5%; Net profit was 207 million yuan, -22.3% year on year.
(3) Zhongke Environmental Protection (301175) : Revenue was RMB812 million, +10.08% year-on-year; Net profit was 164 million yuan, +17.97% year on year.
(4) China Tianda (000035) : revenue of 2.649 billion yuan, +10.92% year on year; Net profit was 360 million yuan, +118.93% year on year.
(5) Weiming Environmental Protection (6,03568) : Revenue was RMB4,113 million, +42.18% year-on-year; Net profit was 1.423 billion yuan, +38.68% year on year.
(6) Tianyuan Environmental Protection (301127) : Revenue was RMB809 million, +28.24% year-on-year; Net profit was 120 million yuan, +47.54% year-on-year.
Although from the perspective of financial data, the operating conditions of several enterprises are quite different, some of them have significantly improved their performance. For example, the net profit of China Tianda increased by 118.93% year on year. Some performance declined seriously, such as Everbright Green net profit fell 45% year on year, but a careful study of the reports of various enterprises, in fact, we are facing the same situation, and almost adopted similar solutions, but some have received results, some have not yet been able to bring profits.
Market environment: The domestic market is almost saturated, and the increment is extremely limited
In the past three years, China's waste incineration market has tended to be saturated, and key indicators such as the number of winning bids for waste incineration power generation projects, new capacity and investment amount have all fallen sharply.
The most direct impact of this market environment on waste incineration enterprises is the lack of income increase. Lack of new projects, the construction income of waste incineration enterprises decreased sharply, such as Everbright Green environmental protection because the number of projects under construction during the period decreased compared with last year, the construction service income decreased 61%, the revenue ratio decreased from 12% in the same period last year by 7 percentage points to 5%; Because there was no BOT project built and implemented, the revenue of BOT project decreased from 213.3 million yuan in the same period last year to 24.84 million yuan, down 88.4%.
In this context, major waste incineration enterprises have taken similar means to increase income.
Means of increasing income 1: reduce cost and increase efficiency of stock projects, expand heating supply and collaborative treatment
On the one hand, waste incineration enterprises strengthen fine management of pretreatment, process control and other aspects, improve the operation efficiency of the project, and improve the ton supply of power plants through the implementation of technical transformation, so as to improve the gross profit margin of waste power generation projects. For example, the gross margin of Zhejiang Energy Jinjiang environmental waste incineration power generation project reached 32.9%, 2.7 percentage points higher than that of the first half of 2023;
On the other hand, on the basis of good operation of waste incineration projects, enterprises actively explore the heating market. In the first half of 2024, heating has become an increasingly important means of revenue for waste incineration. For example, Zhongke Environmental protection achieved 783,400 tons of heating during the reporting period, up 59.71% year on year; Everbright Green's steam supply rose 22 per cent year on year; The steam supply volume of Zhejiang Energy Jinjiang Environment increased 18.2% year on year.
In addition, waste incineration enterprises actively expand the collaborative treatment of various projects. For example, Weiming Environmental Protection renewed the contract of direct transportation service project of household garbage in Ouhai District, and continued to be responsible for the transportation of perishable garbage and other garbage generated by various residential areas, enterprises and public institutions, commercial complexes in Ouhai District; Under the mode of Mianyang Circular Economy Industrial Park, Zhongke Environmental Protection has realized the collaborative treatment of medical waste and household waste incineration and power generation, and charged medical waste treatment fees to hospitals within Mianyang city.
Means of increasing income 2: operating overseas projects + equipment export
In the case of limited increase in the domestic waste incineration market, waste incineration enterprises have set their sights on overseas. Taking China Tianda as an example, the Hanoi waste incineration power generation project independently invested, constructed and successfully operated by the company was put into operation in March last year, with daily processing of household waste exceeding 4000 tons, which has brought stable and good returns to Tianda in this reporting period.
At the same time, enterprises export their complete sets of waste incineration equipment and construction services overseas. For example, during the reporting period, Zhongke Environmental Protection signed the memorandum of cooperation with Andiyan Prefecture of Uzbekistan on the country's first household waste incineration power generation project, and signed core equipment supply services for the projects of Palembang in Indonesia, MAHA, Sapay, Chaiana, Chumphong and Ratchaburi in Thailand. China Tianying provides advanced technology and design and manufacturing services for a full set of key equipment for the MSW project in Maldives, several MSW projects in Hyderabad, India, Valo'Marne MSW project and Novasteam MSW project under Suez Group.
Means of increasing income 3: develop new energy business and create a new growth curve
In addition to the main business of waste incineration, developing new business and creating a new growth curve have also become a magic weapon for enterprises to increase income. Among them, the most representative are China Tianying and Weiming Environmental Protection, both of which focus on new energy business with different emphasis.
The new energy business of China Tianying is mainly the new energy business of wind power generation, photovoltaic power generation and hydrogen production by electrolysis of water, with gravity energy storage and green hydrogen-based chemical industry as the core technologies. In the first half of 2024, China Tianying will accelerate the construction progress of existing projects such as the 100MWh gravity energy storage project in Ridong, and actively promote the implementation and construction of integrated hydroammoniol storage projects in scenic areas such as Jilin, Heilongjiang and Inner Mongolia.
Weiming's new energy business focuses on lithium battery materials. Among them, the foreign business is mainly to set up a joint venture company in Indonesia to carry out the investment, construction and operation of nickel metal smelting projects, while the domestic business is mainly to set up a joint venture company to produce nickel sulfate, electrolytic nickel, power battery materials and other products, forming the upstream and downstream integrated investment and operation of power battery materials. In the first half of 2024, the 40,000-ton Indonesian high ice nickel project of Jiaman Company, a subsidiary of Weiming Environmental Protection, progressed smoothly, and the equipment installation entered the final stage. Weiming Shengqing Company Wenzhou lithium battery new material project has acquired 81.2 mu of land, office buildings, canteen and dormitory buildings have been put into use, and the construction of nickel sulfate production line and the first phase of nickel electrolyzing workshop has entered the final stage.
Sanitation technology network noted that Tianyuan environmental protection also began to layout new energy business. On the evening of August 19, Tianyuan Environmental Protection issued a continuous announcement, announcing that the company signed the seventh Division Huyanghe City military-ground integration 2GW photovoltaic (Xinjiang Xingxinghang New Energy Co., LTD. 1GW) project, (Yangzhou Jiangdu District) hydrogen energy equipment research and development and manufacturing base project, with a total investment of about 4.02 billion yuan.
Xinjiang photovoltaic power generation project is Tianyuan Environmental Protection's first foray into new energy photovoltaic construction; Yangzhou hydrogen energy equipment project is laying a foundation for the company's future development in green hydrogen, green alcohol, green ammonia and other fields.
Obviously, in the new energy business, Tianyuan Environmental Protection has chosen a similar track to China Tianda.
At present, Everbright environment, capital Environmental protection, Hanlan Environment, Conch entrepreneurship, Yuefeng Environmental protection, Sanfeng environment and other listed leading enterprises in waste incineration have not released semi-annual reports. The data sample is limited and cannot reflect the market status of the whole waste incineration industry in the first half of 2024. If you want to get a full view of the industry, you have to wait a few days.
Source: https://mp.weixin.qq.com/s/6P2vfL-2Qm7zQ1Hba8z3jg