The company's main business is the overall solution to the environment, including garbage pollution reduction, garbage pollution remediation, and difficult wastewater treatment. At the same time, entrusted operation is also one of the company's main business, this kind of business company in accordance with customer requirements, in a certain period of operation to provide customers with garbage pollution and water pollution control facilities management, operation and maintenance services.
The problem of leachate pollution needs a new technological breakthrough. Landfill leachate is one of the main pollution sources of groundwater. at present, conventional leachate treatment uses "biochemistry + membrane separation" treatment process, in which membrane treatment technology mainly includes ultrafiltration, nanofiltration and reverse osmosis membrane. however, the disposal of membrane concentrated liquid has become a "bottleneck" problem in reducing the source of pollution in landfills. the practice of filling landfill with membrane concentrated liquid will lead to the continuous accumulation of pollutants in landfills. Increase the risk of landfill pollution and the difficulty of follow-up groundwater restoration. The full quantitative treatment technology of landfill leachate, which can achieve the treatment of refractory organic pollutants efficiently, economically and stably, has been widely concerned by researchers at home and abroad in recent years, and there have been small-scale technical applications in China. its operational stability and technical economy are the limiting conditions that restrict the wide application of the technology, and there is an urgent need for technological breakthrough.
The field of garbage pollution remediation in China obviously lags behind. At present, the conventional landfill treatment technology in China only involves top cover and greening, leachate and Rain Water inverted discharge and so on, but the prevention and repair measures for the main pollution ways of landfills (underground pollution) are missing, which is a serious threat to the safety of groundwater drinking water and human health. At present, some research achievements have been accumulated in aquifer media and pollutant space characterization, pollutant migration blocking, pollutant release in low permeability layer, remediation materials and equipment and so on. Compared with the international advanced level, China is still lagging behind in the core technology, materials and equipment and management decision-making of contaminated site restoration. With the further implementation of the construction plan of harmless municipal solid waste treatment facilities in the 13th five-year Plan, the existing municipal solid waste landfills will enter the closure stage in a large area, and the garbage pollution remediation market will usher in a huge market space in the future.
The market scale in the field of difficult wastewater treatment reaches hundreds of billions of yuan. According to the Global and China Industrial Wastewater treatment Industry Development report released by GEP Research, from the perspective of regional distribution, the global industrial wastewater treatment market demand is mainly concentrated in the United States, China, the European Union, Japan and other regions. The global industrial wastewater treatment industry market size in 2017 is about 368 billion yuan, of which the United States is about 100 billion yuan, accounting for 27.2% of the world, ranking first. China ranks second at about 88.9 billion yuan, accounting for 24.2% of the world.
In 2017, the market size of China's industrial wastewater treatment industry increased by 5.44% compared with the same period last year. With the advance of the battle against water pollution, investment in industrial wastewater treatment is expected to continue to grow. In the next three years, the market scale of the industrial wastewater treatment industry will maintain an annual compound growth rate of about 5%. GEP Research predicts that by 2020, the market size of China's industrial wastewater treatment industry will reach 102.45 billion yuan.
The company's three major environmental protection companies have core technology. In the field of garbage pollution treatment and water pollution treatment, the company has mastered mature technology integration processes, including biological treatment process, physicochemical treatment process, membrane treatment process, MVR evaporation treatment process, etc. In the aspect of garbage pollution control, the treatment process of "key technologies and applications of prevention and control and enhanced remediation of landfill groundwater pollution system" developed by the company is in a leading position in the industry and won the second prize of national scientific and technological progress; in terms of water pollution control, through the integration of various treatment processes, on the basis of reaching the discharge standard, the company has been able to achieve the recovery and utilization of salt and achieve the effect of "near zero discharge".
Profit forecast: we predict that the net profit of the owner of the parent company from 2019 to 2021 will be 94.28 million yuan, 119.58 million yuan and 132.57 million yuan respectively. According to the calculation of 85 million shares after issuance, the company's EPS will be 1.11,1.41,1.56 yuan respectively. As the company will further focus on waste pollution reduction and remediation business, difficult wastewater treatment business and other core business, the company's performance growth is also sustained. Therefore, we propose to use the PE relative valuation method, the average price-to-earnings ratio of the comparison company in 2019 is 13.92 times, the stock price of the corresponding company should be 15.31 yuan per share, the total market capitalization of the corresponding company is 1.301 billion yuan, and the proposed inquiry range is 13.01-16.91 yuan per share.
Risk tips: 1) the risk of high accounts receivable; 2) the risk of lower gross profit margin.
