Items:
Hunan Yongqing Environmental waste disposal Co., Ltd., a wholly owned subsidiary of Yongqing Environmental Protection, signed the Investment Agreement on Yunnan Dafengyuan Environmental Protection Co., Ltd with Xu Wei, Xu Yuliang, Li Wei, Dai Qiwen and Shanghai Jingji Investment Consulting Co., Ltd. Yongqing waste disposal plans to acquire 100% equity interest in Shanghai Delong and Hangzhou Fengdi with a total cash of 178200000.0 yuan. And indirectly hold 66% of the equity of Yunnan Dafengyuan Environmental Protection, of which 159.048917.5 yuan is the equity transfer, and the remaining 19151082.50 yuan is the debt transfer price.
Yunnan Dafengyuan Environmental Protection is mainly engaged in harmless disposal and comprehensive utilization of hazardous wastes, with incineration, physicochemical, stable solidification, safe landfill and comprehensive recycling facilities, complete facilities, a total of 37 categories of hazardous waste disposal qualifications. The approved disposal scale is 330,000 tons / year, including 9000 tons / year incineration and disposal production line, 10000 tons / year landfill disposal production line, 10000 tons / year physicochemical disposal production line and 4000 tons / year comprehensive utilization production line.
Comments:
The next city buys Yunnan's hazardous assets and broadens the industrial layout.
Since the acquisition of Kangbo solid waste, the target of high-quality and hazardous waste, Yongqing Environmental Protection has acquired 100% equity interest in Shanghai Delong and Hangzhou Fengdi with 178 million in cash, and indirectly holds 66% equity interest in Yunnan Dafengyuan Environmental Protection, of which 159.048917.5 yuan is equity transfer. the remaining 19151082.50 yuan is the transfer price of debt. The target company Yunnan Dafengyuan Environmental Protection achieved a net profit of about 10.2139 million yuan from January to October 2017.
Dafengyuan is a legal operator of Kunming Hazardous waste treatment and disposal Center with broad prospects. On December 30, 2010, Dafengyuan signed the Kunming Hazardous waste treatment and disposal franchise fee Agreement with Kunming Development Investment Group Co., Ltd. with the consent of Kunming franchise Management Office, Dafengyuan uses franchise to dispose of hazardous waste in Kunming and its surrounding areas for a franchise period of 25 years. "Kunming Hazardous waste Center" is one of 31 comprehensive centralized hazardous waste disposal projects in "National Hazardous waste and Medical waste disposal facilities Construction Plan". At the same time, it is included in the "Tenth five-year Plan" for the Prevention and Control of Water pollution in Dianchi Lake Basin and the key projects of "Model creation" and "Chuangwei" in Kunming. Dafengyuan is the legal operator of Kunming Hazardous waste treatment and disposal Center. Responsible for the investment, design, construction and operation of the "hazardous waste center" project.
It has a total of 37 categories of hazardous waste disposal qualifications, with a disposal scale of 33,000 tons per year. Dafengyuan is mainly engaged in harmless disposal and comprehensive utilization of hazardous wastes, with incineration, physicochemical, stable solidification, safe landfill and comprehensive recycling facilities, complete facilities, a total of 37 categories of hazardous waste disposal qualifications.
The approved disposal scale is 330,000 tons / year, including 9000 tons / year incineration and disposal production line, 10000 tons / year landfill disposal production line, 10000 tons / year physicochemical disposal production line and 4000 tons / year comprehensive utilization production line. After the completion of this transaction, the company will enter the hazardous waste disposal market in southwest China, which is another major measure for the company to vigorously develop hazardous waste disposal business, and will further improve the strategic layout of the company in the field of hazardous waste and the whole industrial chain of the environment.
Deep ploughing soil remediation, winning bid 570 million heavy metal pollution control project, establishing a leading position in soil remediation industry.
At present, soil remediation accounts for less than 0.01% of domestic GDP, which is much lower than the development level of 0.3% in European and American markets. With the promulgation and implementation of the soil law, the soil remediation industry will usher in a period of rapid development. Yongqing Environmental Protection has a first-mover advantage in the field of soil remediation, relying on the rich soil remediation experience and leading technical strength of IST Company of the United States, actively layout the "big soil" strategy, and the future development can be expected. On January 18, 2018, Yongqing Environmental Protection and holding subsidiary Hunan Yongqing Water Affairs and Hunan Yeda Construction Co., Ltd. jointly won the 1.869 billion Jiahe County PPP project, including the project 570 million comprehensive treatment of heavy metal pollution in the Taojia River Basin. It is expected that the winning bid will provide more experience for the development of the company's business such as the treatment of heavy metal pollution in the river basin and promote performance growth.
With a complete waste disposal industry chain and stable operation of waste incineration power generation business, it is an important supplement to the performance.
In the waste disposal sector, the company has a complete industrial chain from upstream garbage removal, mid-stream waste incineration and power generation, downstream flue gas and fly ash treatment. At present, the waste incineration power plant in Xinyu City (600t/ day) and the first phase project of Hengyang City (1000t/ day) are running at full load and in good condition; the construction of the new project Hengyang Phase II and Liupanshui project is progressing steadily.
Profit forecast
According to the company's development strategy, the future endogenous development focus on soil, extension focus on hazardous waste, the company recently won the bid 1.87 billion Jiahe County PPP project, is expected to promote the company's high performance growth. We expect the company's homing net profit for 2017-2019 to be 156,000,000 RMB 335,000,000, taking into account the dilution of the rights issue corresponding to an eps of 0.24Unix 0.44max 0.58, which is given a "buy" rating.