Recently, the general market continued to maintain a volatile trend. The Hang Seng Index has been in a slump for several days. Today, it opened more than 1% lower, and technology large-cap stocks have fallen one after another. Despite the market's grim, there is no shortage of individual stocks that have shown strong performances or even left the independent market. Among them, the performance of a newly listed small-cap stock was particularly impressive -- Hongcheng Environmental Technology first surged more than 22% yesterday, started trading today with a headwind rise, and later pulled back.At the time of press release, the issue price was still stable.Reclaiming lost ground.
The reason why companies are once again being chased for capital is actually traceable. Just before listing, Hongcheng Environmental Technology's impressive performance with overpurchases and dark trading of nearly 24 times was outstanding compared to the IPO during the same period.
Well then,Why has Hongcheng Environmental Technology been favored by capital over and over again? What is unique about the company? What kind of signal was it sending out?The reason for this is actually not difficult to understand; you can do it fromManagement texture,Affiliated topicsandscarcityLet's talk about the three aspects.
The value of a company depends critically on the quality of its internal texture, and the popularity of the racetrack, the quality of the pattern, and whether there are any barriers are also fundamental influencing variables. Judging from this, Hongcheng Environmental Technology can rightfully be called a high-quality enterprise.
Hongcheng Environmental Technology is a leading enterprise in hazardous waste treatment in gold mines in China. It is mainly engaged in the hazardous waste treatment and resource recycling business of gold mines. It is a “golden race track” in the environmental protection industry and is in a boom cycle.In three years, the company doubled its revenue, net profit (excluding listing fees in 2020) increased 1.5 times, and the year-on-year growth rate remained above 30% in the first half of this year.
Not only is growth high, but profitability is also excellent. The gross margin for the past two years has remained above 60%, and the net interest rate has been above 30% for a long time, far higher than the environmental protection industry and other sub-sectors. At the same time, there is a possibility of further improvement in the future.
In addition to the high level of prosperity on the racetrack and the company's leading market position,Another very critical benefit is that the barriers to this business are high, mainly in terms of qualifications and technologyAmong them, licensing qualifications are essentially a type of franchise, and the key to technology lies in talent and equipment, plus capital investment including resources such as land. Precisely because of factors such as professional technical thresholds and costs mentioned above, gold smelting companies often tend to outsource the tailings treatment process to third party professional processing companies such as Hongcheng Environmental Protection, and as environmental requirements become stricter, their dependence is bound to increase.
Furthermore, since the upstream leading pattern of the domestic gold mining industry chain is highly concentrated, and hazardous waste treatment facilities are put into operation at a certain time, service providers such as Hongcheng Environmental Technology, which already have the advantage of large-scale production capacity, can more fully absorb the relatively centralized demand of upstream, which is also an obvious barrier to new entrants or small players in the industry. This has not only created a pattern of concentration of leaders in the domestic gold mine hazardous waste treatment field, but is also exacerbating this situation in the context of the new energy saving and emission reduction policy. So,As a leader in environmental protection technology, Hongcheng will surely benefit from the trend of increasing industry concentration in the future.
In addition to high growth and excellent profitability, various other financial indicators also show that the company is on a positive and healthy development path.
For the future,The company's growth logic is also quite clear: First, the gold mine hazardous waste treatment business line benefits from the global gold rich location advantage in Yantai, Shandong, and stable long-term relationships with leading mining group customers such as Shandong Gold to ensure a performance growth center. At the same time, considering the continued growth in gold demand and stricter environmental policies, bargaining power is expected to continue to increase in the future. Second, the renewable resources business line includes two aspects. On the one hand, sulfur concentrate is affected by strong downstream demand for sulfuric acid, and there is a possibility of further increase in future gross margin; on the other hand, it benefits from increased market space brought about by the expansion of new categories represented by construction aggregates.
Based on the above analysis, the subject of Hongcheng's environmental technology is also obvious. As a leader in hazardous waste treatment in gold mines, it belongs to the garbage disposal sector.The most notable one is to benefit from the direction of reducing, harmlessening and recycling garbage disposal under the “double carbon” plan. At the same time, the company is in the gold industry chain and is also benefiting from increased demand such as gold consumption and investment.As a result, scarcity in the capital market is prominent. Furthermore,There is also the addition of the “Specialization, Special and New” themeI'm afraid it would be difficult to take off even if you don't think about it.
Furthermore, in fact, the market style that favors stock trading this year also favors Hongcheng Environmental Technology to a certain extent. However, after the company returned to the issue price, it not only boosted market confidence, but also injected a dose of strength into the IPO market.