QiaoYin(SZ:002973)2022-12-04 09:46Company Overview - Qiaoyin Environmental has been dedicated to environmental sanitation since its establishment in 2001, becoming a leading player in China's sanitation service industry [3] - The company achieved a revenue of CNY 2.195 billion in 2019, a year-on-year increase of 39.3%, with a net profit of CNY 131 million, up 27.94% [4] - In Q1 2020, the company reported a revenue of CNY 666 million, a 40.37% increase year-on-year, and a net profit of CNY 86.71 million, up 184.84% [4] Market Potential - The sanitation industry is a necessity for cities, with a large market space; the total market size in China is expected to reach CNY 314.4 billion by 2020 [4] - The company is positioned as a benchmark in the sanitation industry, consistently ranked among the top three influential brands for ten consecutive years [4] Business Performance - The company has shown rapid growth with a compound annual growth rate (CAGR) of over 36% in revenue from 2017 to 2019, with new orders exceeding CNY 27 billion during this period [4] - The company has a strong order backlog, with an annualized amount of approximately CNY 3 billion for 2020, and CNY 1.3 billion for new orders in 2019 [6] Strategic Advantages - Qiaoyin Environmental implements a dual strategy of "Urban Steward" and "Environmental Innovation Technology," enhancing its service offerings and operational efficiency [5] - The company operates in over 60 cities across 17 provinces, showcasing extensive operational experience and a broad service coverage [5] Response to COVID-19 - The pandemic has increased the company's workload, particularly in disinfection and sanitation services, leading to discussions for additional subsidies with clients [6] - The company anticipates that the pandemic will lead to greater government focus on public sanitation, potentially resulting in more supportive policies for the sanitation industry [6] Future Outlook - The company expects to see a quick release of market orders in the second half of 2020, following the resumption of normal operations post-pandemic [9] - Qiaoyin Environmental is actively monitoring potential acquisition targets to enhance its market position, with planned capital expenditures for 2020 expected to be no less than CNY 500 million [9]