Fuchun Environmental Protection (002479) Research Bulletin: Endogenous Extension and Simultaneous Profits Promote Rapid Repair

Fuchun Environmental Protection (002479) Research Bulletin: Endogenous Extension and Simultaneous Profits Promote Rapid Repair

I. Overview of the event Recently we participated in company research 青岛夜网 and exchanged information on future development strategies.

2. Analysis and judgment The “solid waste disposal + energy saving and environmental protection” model is continuously replicated in different places. The company with rich solid waste disposal content started in the early years by providing heating and sludge disposal services for Fuyang Paper Park. After listing in 2010, it was acquired through mergers and acquisitions.The sludge disposal and coordinated heat and power co-generation projects in five parks, including Donggang Port and Changzhou Xingang District, have gradually formed a waste disposal capacity of 1,000 tons / day and sludge disposal capacity of 7,000 tons / day, and successfully replicated “solid waste disposal + energy conservation and environmental protection”Industry model of circular economy.

In addition to continuously increasing the heating scale of the park in the future, the connotation of the company’s solid waste disposal business will also extend from the previous waste incineration and sludge disposal to the harmlessness and recycling of hazardous waste.The layout is leading and it is expected to become a new growth point.

Sluggish demand, rising coal prices led to profit growth in 2018, profit trends in the second half of the year quickly repaired by environmental protection inspectors in 2018, and other factors affected the company’s customer demand for steam and increased coal costs.As a result, the company gradually realized net profit attributable to its mother.

2.5 billion, the previous interest rate was 64%.

According to the Fuyang government plan, Samsung Thermal Power, which competes with the company in the second half of the year, will be shut down, and the company will take over the remaining customers in its park. The heat load will tend to increase significantly.With the gradual increase of steam volume and the gradual fall of coal prices to the green range, the company’s profit is expected to be quickly repaired in the second half of the year.

The planned acquisition of Platinum Ruirui Energy continued to expand, and the large-scale repurchase demonstrated the confidence in holding shares.

500 million U.S. dollars of self-owned funds to acquire 85% equity of Borui Energy and integrate its cogeneration projects in Jiangxi Xingan, Xiaolan, Nanchang, Zhejiang Taizhou and other places. After the completion of the transaction, the company’s industrial scale will be realized on the existing basisDoubled.

In October 2018, the company disclosed the repurchase plan.
The repurchase of the company’s shares at a price of no more than 7 billion US dollars per share of 400 million US dollars demonstrates the company’s confidence in future development.

Third, investment 深圳桑拿网 suggestions are optimistic about the company’s “solid waste disposal + energy saving and environmental protection” circular economy industrial model of remote replication, the company is expected to 2019?
In 2021, the EPS will be 0.



52, corresponding to the current expected PE 18/15 / 12x.

The company predicts PE 18x in 2019, which is less than 90% of the value since listing. The average PE with a distance of 30x in the past three years has room for penetration repair, and it is covered for the first time.

4. Risk warnings: 1. The project’s commissioning progress is less than expected; 2. M & A progress is less than expected; 3. Coal prices continue to increase.