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.

数据推荐

投资评级

更多>>
股票名称最新评级目标价研报
苏州银行 持有 -- 研报
华正新材 中性 -- 研报
汇顶科技 中性 -- 研报
长电科技 中性 -- 研报
精测电子 中性 -- 研报
深南电路 中性 -- 研报
北方华创 中性 -- 研报
顺络电子 中性 -- 研报
京东方A 中性 -- 研报
今世缘 买入 -- 研报
山西汾酒 买入 -- 研报

盈利预测

评级选股>>
股票名称11年EPS12年EPS研报
苏州银行 0 0 研报
北方华创 1.31 0.94 研报
精测电子 0 0 研报
顺络电子 0.55 0.41 研报
长电科技 0.20 0.20 研报
京东方A -0.05 -0.03 研报
山西汾酒 1.85 1.75 研报
华正新材 0 0 研报
深南电路 0 0 研报
汇顶科技 0 0 研报

股票关注度

更多>>
股票名称关注度平均评级最新评级
中信证券 34 持有 买入
通威股份 33 持有 持有
贵州茅台 31 持有 中性
隆基股份 31 买入 持有
华泰证券 31 持有 持有
伊利股份 30 持有 中性
中信证券 29 持有 买入
上汽集团 29 持有 买入
万科A 29 买入 买入
格力电器 29 持有 买入
五粮液 29 持有 中性
三一重工 28 持有 中性
泸州老窖 28 持有 中性
中顺洁柔 27 持有 中性
当升科技 27 持有 中性
美的集团 26 持有 买入
中国国旅 24 持有 买入

行业关注度

更多>>
行业名称关注度关注股票数买入评级数
电子信息 612 86 313
汽车制造 560 36 315
金融行业 496 28 217
建筑建材 460 52 214
电子器件 419 55 241
钢铁行业 404 28 176
化工行业 394 61 111
生物制药 364 51 181
机械行业 345 41 132
家电行业 319 12 134
房地产 301 30 214
煤炭行业 288 24 110
酿酒行业 280 16 108
电力行业 240 31 74
交通运输 231 26 119
服装鞋类 226 20 119
农林牧渔 202 23 80