Dongjiang Environmental Protection (002672): The state-owned leader in hazardous waste disposal enters the period of concentrated production capacity release
Core point of view: Leading state-owned assets disposal for hazardous waste. After the integration of equity, the company entered a new stage of development.
The company is the country’s leading industrial hazardous waste leader, with 44 categories of hazardous waste operating qualifications, and has established a diversified industrial structure and full-service chain waste treatment capacity.
Since 2016, it has experienced multiple equity transfers. Guangdong Guangsheng and Jiangsu Huihong have become the company’s first and second largest shareholders (Q3 in 2019), with a cumulative cumulative holding ratio of over 30%.
The company achieved revenue of 25 in the first three quarters of 2019.
800 million, net profit attributable to mother 3.
The policy promotes the standardized growth of the industry, and the market space for hazardous waste only harmless operation exceeds 100 billion yuan.
Affected by risk events caused by improper disposal of hazardous wastes in industrial parks and the improvement of industry standards, hazardous waste 西安耍耍网 policies are frequent, and it is expected that with the construction of “clearance actions” and “no waste cities”, hazardous waste disposal construction will be promoted.
It is estimated that by 2020, the annual output of industrial hazardous waste will exceed 9,000 tons. However, due to factors such as low capacity utilization of licensed companies and mismatched disposal types, there is still a mismatch in production capacity.
It is expected that with the increase in demand and capacity construction and operation driven by mismatched capacity restoration, the market space for harmless operations alone will reach 100 billion yuan.
The projects under construction are expected to be put into operation in the next two years, promising the continued expansion of Guangdong and the Soviet Union.
The company has abundant 深圳spa会所 project reserves. As of the end of 2018, the company included over 150 digits of annual hazardous waste treatment capacity in operation.
Along with industrial standardization and leading concentration, overlapping Guangdong and Jiangsu provinces have clear plans for hazardous waste construction. They are optimistic about the company’s capacity expansion in Guangdong and the Soviet Union and other places. The company has covered 10 hazardous waste provinces and cities through outsourcing.
Ample capacity under construction, diversified layout to create the entire industry chain, and a “buy” rating.
The company’s EPS for 2019-2021 is expected to be 0.
72 yuan / share, corresponding to PE at the latest closing price of 19.
Three times, the company, as a leading hazardous waste company, has achieved a national layout and has sufficient production capacity under construction, benefiting from a good return on the B-side business model.
It is expected that the compounded net profit growth rate of the company from 2020 to 2021 will be more than 20%. With reference to the scale of the company and the ranking of the company’s leader, we will give a PE valuation of 18 times in 2020, corresponding to 10.
The reasonable value of 69 yuan / share, according to the premium ratio of AH shares on January 14, corresponding to the reasonable value of H shares 7.
09 Hong Kong dollars / share, for the first time coverage of Dongjiang Environmental Protection A, H shares “buy” grade.
Risk warning: the financing environment is tight, the project financing is less than expected; the project construction progress is less than expected, and the capacity release progress is slow; the government’s environmental pollution review is becoming severe, and emissions may exceed standards.