Events:
The company issued an announcement of winning the bid. Signed three BOO project cooperation agreements, respectively for Guizhou Bijie 2 million tons / year coal clean fuel project water treatment system, solid waste treatment system, thermoelectric plant.
Main points of investment:
Senior coal chemical wastewater treatment experts, deeply dig customer resources, wastewater, solid waste, thermoelectric equipment involved in all aspects, to enhance the performance contribution of individual coal chemical customers. The company won the bid for Guizhou Bijie 2 million tons / year coal clean fuel project water treatment system, solid waste treatment system, thermoelectric equipment, of which the total investment of water treatment system, solid waste treatment system and thermoelectric equipment is estimated to be about 1.6 billion yuan, 600 million yuan and 2.6 billion yuan respectively. In the short term, the above project will officially start in the second half of 2018. The project construction period is expected to be four years, with an average annual contract execution of about 1.2 billion. Entering the construction period will greatly increase the company's performance.
In the long run, the operation period is locked in the franchise of 20 years, and the client of the project will settle the account month by month according to the principle of "according to payment", with stable cash flow and high quality of the project.
High-quality and dangerous license plate, looking forward to the production capacity landing. The comprehensive disposal license of 42 kinds of wastes in Jinghua radiates all over Heilongjiang Province, and the annual output of hazardous waste in the province will reach 1.04 million tons by 2020. The first phase of the project is under construction, with an annual comprehensive disposal scale of about 83900 tons, which is expected to be completed and put into production in May 19. It is estimated by the company that the net profit of the hazardous waste project will reach 70.99 million yuan / year after reaching production. The qualification of Jilin solid waste license, a wholly owned subsidiary of the company: physical and chemical 8000 tons, incineration 10, 000 tons (including medical waste), landfill 110000 tons. At the same time, the largest hazardous waste landfill in the three northeastern provinces (the only dangerous waste landfill in Jilin Province) is under construction, with a storage capacity of 1.4 million square meters, which is extremely scarce. And in 16 years, the company acquired 51% of the holding shares of Taiyuan Oil, and laid out the market of oil-based drilling cuttings and sludge disposal in advance, which will coordinate with the company's deep petrochemical resources.
The 13th five-year Plan focuses on the management of the Black-smelly River, and the company has obvious advantages of first-mover. The Action Plan for the Prevention and Control of Water pollution proposes that "the built areas of municipalities directly under the Central Government, provincial capitals and cities separately listed on the State plan should basically eliminate the black and smelly water body by the end of 2017." it is estimated that the national market space will be about 100 billion by the end of 2020. Through the acquisition of beyond science and technology to cut into the black stinky river treatment, the company has the core technology such as biological enzyme treatment, efficient flocculation technology and sediment rapid desilting and drying technology, combined with microbial enzyme technology, can carry out systematic mud-water co-treatment of large-scale river. At present, demonstration projects for the treatment of Heidi River have been carried out in Shanghai, Changshu, Hangzhou and other places with remarkable results. We expect the company to benefit greatly from the approaching Black Stinky River assessment and tighter regulation.
The waste acid disposal business has landed, the market space is sufficient, and the performance has increased obviously. The waste acid is treated as a rigid demand, and the total amount is huge. According to the statistics of China Chemical Industry Information Center, China produces more than 100 million tons of industrial waste acid every year. According to the national annual metal processing and pickling production of 20 million tons of waste hydrochloric acid, it is calculated that the future corresponding investment demand is 10 billion, and the operating space is 10 billion / year. There are nine major scrap processing bases in China, with a scrap capacity of more than 3000 tons per day, which is expected to give priority to the release of demand. The company's resource technology is in line with the trend of environmental protection. In the first three years after the first phase was put into production, the annual net profit was 13.4821 million, and the performance increased significantly.
Holding petrochemical tailing seam market leader, put into production at the end of 2017, for the future performance growth point. When the first phase of Huizhou Ecos project is completed at the end of November 17, it will become the largest C5 separation project in the country (with an annual raw material processing capacity of 300000 tons).
C5 raw materials are scarce. It is estimated that the total amount of C5 raw materials in the country is no more than 1.8 million tons, and Icos's first phase accounts for 300000 tons, accounting for 17%, which is the largest comprehensive utilization project in Asia. And after the completion of the second phase of Ecos, the deep processing capacity of C5/C9 will be formed. the main products are high-end resins such as DCPD hydrogenated resin and C-9 hydrogenated resin, which have a wide range of applications. The company has become the largest shareholder by 45% of Huizhou Ecos in 16 years, and it is expected that the commissioning of the project will greatly improve the company's profit level.
Profit forecast and investment advice: combined with the progress of the project, we maintain the 17-19 net profit forecast of 4.14,6.99,1.083 billion, corresponding to 41 times and 24 times of PE in 17 and 18 years, the performance inflection point is more obvious, maintaining the "buy" rating.
