Rehabilitation and environmental protection: the leading enterprise of integrated sludge treatment equipment
Fujie Environmental Protection was founded in 2011, formerly known as Fujie Co., Ltd., jointly funded by Huang Wenjun and Sun Weidong. In 2015, it was formally transformed into a joint stock limited company; in 2016, it successfully developed the core component of low temperature vacuum dehydration and drying integrated technical equipment-dried filter plate, and began mass production of filter plate in April 2017. to achieve the replacement of imported customized products; in August 2020, it was listed in Science and Technology Innovation Board.
Industry level: sludge treatment has become the focus of the deficiency board, and the industry has entered a period of rapid growth, according to the data released by the E20 environmental platform, the total scale of harmless disposal of urban sludge in 2018 is 742 million tons per day, and the proportion of harmless disposal of sludge is only 40%. It is estimated that during the 14th five-year Plan period, the market space for harmless sludge disposal is 92.2 billion yuan, which is released year by year for five years, with an average of about 20 billion yuan per year, increasing year by year.
At present, the main technology for harmless sludge treatment in China is energy drying, and the mainstream technology is sludge dewatering + drying "two-stage" technology. The integrated equipment for sludge dewatering and drying provided by Fujie and environmental protection accounts for only 6.8%. In terms of technical economy, under the premise of the same sludge treatment scale, compared with the mainstream sludge "dewatering + drying 'two-stage" technology in the market at present, the company's low-temperature vacuum dewatering and drying integrated technology is basically the same in terms of the total investment cost of equipment, and has obvious economic feasibility in terms of the total cost per ton.
Company level: integrated equipment has core technology, capacity expansion releases performance elasticity company's core technology is low temperature vacuum dehydration and drying integration technology and waste gas purification technology.
Among them, the drying filter plate is the core component of the low temperature vacuum dehydration and drying integrated technical equipment, the company independently developed the material formula and production and processing technology, and developed the first super-large extrusion pressing production line at home and abroad. it has independent production capacity of drying filter plate, and constructs a full set of intellectual property protection system.
The company's products have been applied in many demonstration projects in Shanghai and Guangzhou, and plan to expand from municipal sludge treatment to the field of solid-liquid separation of industrial special materials. By the end of 2019, the company had an order of 550 million yuan. At present, one production line of dried filter plate has been put into use and two are under construction. Its manufacturing capacity and specifications of dried filter plate have been unable to meet the growing needs of the company's business. The company plans to use IPO to raise about 350 million yuan to build three filter plate production lines. After the construction is completed, the production capacity of large plates will increase by 2000 pieces per year, that of medium filter plates by 5000 pieces per year, and that of small plates by 15000 pieces per year. The release of capacity bottlenecks is expected to release the company's performance flexibility.
Profit forecast and investment suggestion
It is estimated that the company's net profit from 2020 to 2022 will be 95 million yuan, 148 million yuan and 208 million yuan, an increase of 47%, 57% and 40% over the same period last year, and the share price PE before the corresponding period is 52 times, 33 times and 24 times respectively.
Considering that the company has been in a period of rapid growth in recent years, with a compound performance growth rate of 48% in the three years from 2020 to 2022, we are optimistic about the future market promotion of the company's technology, and believe that the company is reasonable PE40-50 times, with a target price of 81.6-102 yuan per share, with a "buy" rating.
Risk hint: the risk of technology promotion is lower than expected, the risk of new technology substitution in the industry, and the release of sludge disposal market is slower than expected risk.
