Hanlan Environment (600323) released comments: it plans to sign some projects with Shengyun Asset Transfer Agreement to strengthen capacity reserves

Hanlan Environment (600323) released comments: it plans to sign some projects with Shengyun “Asset Transfer Agreement” to strengthen capacity reserves

The company plans to sign part of the project “Asset Transfer Agreement” involving a production capacity of 4,300 tons / day. The company announced recently that following the signing of the “Waste Incineration Power Generation Project Investment and Cooperation 苏州桑拿网 Framework Agreement” with Shengyun Environmental 爱北京体验网 Protection in June 2019, the company plans to establish a contract with Shengyun Environmental Protection in the near future.And Huai’an Zhongke Environmental Protection signed part of the “Asset Transfer Agreement” involving Jining Phase II (800 tons / day), announcing City Phase II (1000 tons / day), Haiyang Project (500 tons / day), Wulanchabu(1200 tons / day), five projects in Huaian Phase II (800 tons / day) franchise, with a total capacity of 4,300 tons / day, of which the first four projects Shengyun Environmental Protection have the right to agree on the principle of mutual agreement in 2021 4 The copyright repurchase right before the 30th of the month, the above “Agreement” will take effect after being approved by Shengyun Environmental Protection’s internal decision-making authority.

The total book value of the above five proposed transfer projects.

48 ppm with an estimated value of 2.

According to the announcement, the book value of the four projects directly held by Shengyun was 210,000 yuan.

145 trillion, with an assessed value of 2.

235 ppm; Huaian Second Futures has a face value of 0.

332 trillion, the evaluation value is 0.

37.2 billion.

In view of the above projects, most of which are under construction in Dublin, it is expected that the company’s solid waste capacity reserve will be effectively strengthened after the transfer.

The company has ample solid waste production capacity in hand, and the South China Sea model is the basis for the layout of solid waste integration. According to announcement statistics, the company’s current waste incineration capacity is in operation.

13 announcements / day, under construction and preliminary super 1.

2 daily / day (excluding Sheng operation); according to the Interim Report, 1000 tons / day of southern Zhangzhou has been commissioned in 2019, and the 1500 tons / day of the South China Sea Phase III can be completed by the end of September.

Under the background of waste classification, the company has developed to the front-end classification and collection and operation (the company has signed the ownership transfer framework agreement with Shenzhen Guoyuan Environment, mainly engaged in urban and rural environmental sanitation), exploring corresponding businesses near existing projects, and achieving synergy and collaboration.

The successful release of SDIC Power as a war investment, the proposed issuance of convertible bonds to accelerate the construction of the project, maintaining the “buy” rating is expected to the company’s EPS in 2019-2021 respectively.

22, 1.

45 and 1.

70 yuan / share, corresponding to the latest PE of 15 respectively.

4, 12.

9, 11.

0 times.

The company’s location advantage is obvious, the multi-business layout enhances the growth certainty, and the non-performing performance maintains about 20% growth. We give 17 times PE valuation in 2019, corresponding to 20.

The fair value of 66 yuan / share. The company successfully dated SDIC Power as the three shareholders. It plans to issue convertible bonds for investment in solid waste projects and maintain a “buy” rating.

Risks indicate that the construction progress of the water plant is higher than expected, and the construction progress of the solid waste project is not up to expectations; the return on assets of new construction projects is falling; the downstream demand for gas is not up to expectations; the purchase price of gas has increased significantly.