China Environmental:Key takeaway from hazardous waste expert call

类别:投资策略 机构:德意志银行 研究员:Thomas Zhu,Michael Tong 日期:2018-01-25

Key takeaways from hazardous waste treatment expert call.

    We hosted a conference call with Ms. LIU Yuan, General Manager of a hazardouswaste treatment plant in Jiangsu. Ms. Liu has over 10 years of experience inthe hazardous waste treatment industry and is among the earliest batch ofprofessionals entering the industry in China. Key takeaways include:Project introduction.

    The Zhenjiang project has hazardous waste incineration capacity of 26 ktpa with100% utilization rate, capable of processing 27 kinds of hazardous waste. Thecompany and the local government co-invested in a hazardous waste landfillproject with capacity of 14ktpa. The incineration plant receives waste from megasizeindustrial customers in different cities within Jiangsu.

    HWT market in Jiangsu and China.

    Jiangsu has hazardous waste incineration demand of ~800 ktpa and an approvedcapacity of 1,100 ktpa. According to management, the actual treatment capabilitywas only ~550 ktpa in 2017 because: 1) some approved facilities have notcommenced operations; 2) some imported facilities faced difficulties in treatingChinese waste and suffered from low utilization; and 3) lack of experiencedmanagement team. Ms. Liu expects competition in Jiangsu to intensify frommid-2018 when capacity ramps up and utilization rate improves. She also believesthat HWT market supply-demand dynamics are more favorable in Central/WestChina compared to coastal China.

    Treatment fees.

    Average treatment fees are RMB5,000/ton and RMB3,500/ton for incinerationand landfill, respectively. Despite 10% CAGR in treatment fees over the past fewyears, Ms. Liu believes that the fees will be stable in the near future unless thereare significant changes in policy or hazardous waste components. The fees mayeven drop in the longer run as a result of new entrants into the market and alsopotential competition from cement kiln co-treatment, and Ms. Liu believes thatnet profit margin will gradually return to the normalized level of 25-35% due tomore competition in the market in the future. Cement kiln co-treatment primarilyaffects landfill since cement kilns mainly process inorganic waste, and Ms. Liudoes not expect the threat to be significant in East China. Industrial customersusually prepay waste treatment fees.



英科医疗 买入 22.08 研报
农业银行 持有 4.48 研报
东方明珠 持有 9.54 研报
美的集团 持有 -- 研报
成都银行 买入 -- 研报
光大银行 买入 -- 研报
工商银行 持有 -- 研报
平安银行 买入 -- 研报
中南传媒 买入 12.53 研报
拓尔思 买入 -- 研报
中国核电 中性 -- 研报


山西汾酒 1.85 1.75 研报
华鲁恒升 0.51 0.46 研报
国睿科技 0.50 0.77 研报
中国动力 0.32 0.17 研报
中航电子 0.46 0.37 研报
四创电子 0.48 0.47 研报
内蒙一机 0.57 0.84 研报
中国海防 0 0 研报
中航沈飞 0.54 0 研报
中直股份 0.38 0.37 研报
瑞特股份 0 0 研报


五粮液 42 持有 买入
伊利股份 39 持有 买入
完美世界 35 持有 持有
保利地产 33 买入 买入
隆基股份 32 持有 买入
贵州茅台 30 买入 买入
泸州老窖 30 持有 持有
中国国旅 29 持有 中性
三一重工 28 持有 买入
广联达 28 持有 买入
比亚迪 28 持有 持有
上汽集团 27 买入 买入
瀚蓝环境 26 持有 买入
长城汽车 26 持有 中性
海天味业 26 持有 持有
亿纬锂能 26 持有 买入
中信证券 25 持有 持有


电子信息 507 86 250
汽车制造 409 42 224
电子器件 299 55 189
机械行业 275 56 127
生物制药 270 53 148
建筑建材 242 47 133
化工行业 233 56 108
金融行业 230 30 99
有色金属 201 40 53
酿酒行业 195 16 110
钢铁行业 190 32 89
家电行业 179 13 105
商业百货 176 36 90
酒店旅游 167 20 83
交通运输 164 32 68
房地产 162 26 104
电力行业 137 29 65