The Zhitong Finance App learned that Conch Environmental Protection (00587) rose by more than 12% and rose 12.07% at press time to HK$1.3, with a turnover of HK$3.99 million.
Societe Generale Securities believes that in the first half of '23, the recovery in domestic industrial production was weak, the amount of waste production was still insufficient, and market competition was fierce. Conch Environmental Protection continued its strategy of prioritizing volume. The amount of industrial solid hazardous waste disposal continued to grow rapidly, and the overall hazardous waste disposal price had confirmed that it had bottomed out. Operational efficiency improved markedly, and profit improved markedly from month to month driven by cost savings. The disposal volume of industrial hazardous waste business has increased steadily, and the bottom of the price has been confirmed.
The bank said that traditional harmless disposal leaders have been losing money for a year in a row, and the acquisition of new conch environmental protection projects has gradually come to an end, and the price bottom of the hazardous waste disposal market has basically been confirmed. The company actively explores new growth momentum, including fuel generation business, fly ash, sludge disposal, etc. The bank basically maintains its profit forecast. The revenue for 23/24/25 is estimated to be $20.0%/+35.4%/+34.7% year-on-year, respectively, and net profit to mother of 4.10/5.79/768 billion yuan, respectively, +24.7%/+24.7%/+24.7%/+41.2%/+32.7% year-on-year. The profit increase is mainly due to the continuous construction and commissioning of hazardous waste projects, maintaining a “buy” rating, and raising the target price to HK$3.53.