According to the information of China bidding Network, Feda Environmental Protection has won the new bid Guangzhou Wanglong Heat and Power Co., Ltd. ultra-clean emission transformation project desulfurization system transformation project, the winning bid amount is 25.67 million. At present, there is no full expectation on the market for the implementation of ultra-low emission standards for thermal power plants and the status of Fida in the ultra-low emission transformation industry of thermal power plants. We think that this bid is of great significance: first, the verification of the imminent large-scale implementation of ultra-low emission standards for thermal power plants; second, the confirmation of Fida's leading position in the thermal power ultra-low emission transformation industry. We believe that the company's business will enter a period of rapid growth in 14 years for two reasons: first, thermal power has ushered in the era of "50355 ultra-low emissions", and the company's main dedusting industry has expanded by 150% corresponding to the market scale. Second, Juhua Group injected scarce and dangerous waste qualifications, funds and provincial resource platform, and Fida transformed into a comprehensive environmental protection engineering and operation platform for ploughing Quzhou and radiating Zhejiang. A number of new businesses such as desulphurization and denitrification project, hazardous waste, garbage incineration, sewage and so on will be launched rapidly. The company has good growth and great business potential, so investors are advised to pay more attention to it.
Main points of investment:
"50355 ultra-low emissions" has promoted the doubling of the market capacity of thermal power flue gas control, and the growth of Feida's main dust removal industry has accelerated: thermal power plants have opened the era of "50355 ultra-low emissions". Five years later, thermal power emissions in key areas are in line with the "50355" emission standards of gas turbines, driving the market capacity of dust removal from 18.9 billion to 47.1 billion in 14-17, and terminal wet dedusting is the mainstream. Feda is the leader of wet dedusting in China, has completed a number of demonstration projects, 14-17 years of dust removal business ushered in a period of accelerated growth. The gross profit margin of the dust removal business has increased steadily, and the profit growth rate is even faster.
Fida has a leading market share in the previous ultra-low emission projects: according to our statistics, Fida participated in three of the seven ultra-low emission projects, including Guangzhou Wanglong, ranking first with Guodian Longyuan.
Qingtai has the qualification for the treatment of scarce and hazardous waste, which locks the demand for environmental protection in Quzhou Industrial Park where Juhua is located: Qingtai, a subsidiary of Juhua, has the only qualification for hazardous waste treatment in Quzhou, and the management of hazardous waste in Quzhou is stricter. Qingtai's annual hazardous waste disposal capacity is expected to grow rapidly in the next few years, conservatively estimated to reach 7500 million 9500 tons in 14 / 15.
Juhua injected provincial platforms and funds, and Feida was transformed into a regional comprehensive environmental protection engineering and operation platform, and many new businesses such as desulphurization and denitrification projects, domestic solid waste treatment and sewage treatment were carried out rapidly. 2 earnings forecast and rating: according to the 14-year IPO and table, it is estimated that the EPS in 14-16 years is 0.15,0.30,0.46 yuan, and the current stock price corresponds to the current stock price corresponding to 39max 25 times 15 / 16 EPS after the valuation switch is completed at the end of the year. The company has good growth and great business potential, giving a target price of 15.50, corresponding to 34 times the 16-year EPS. Highly recommended.
Risk hint: the start / operation time of the waste incineration project is uncertain, and the steel price fluctuates.