Hanlan Environment (600323): The acquisition of Shengyun environmental protection project is expected to be smooth

Hanlan Environment (600323): The acquisition of Shengyun environmental protection project is expected to be smooth

Event: The company announced that the company has reached an agreement with Shengyun Environmental Protection and other parties on the acquisition of assets and plans to sign the “Asset Transfer Agreement” for related projects, and the company will acquire related construction projects and continue to invest in construction.

  Key points of investment: Acquisition of Shengyun Environmental Protection’s waste incineration power generation project, and looking forward to gradually increasing the volume. In early 2019, the company and Anhui Shengyun Environmental Protection (Group) Co., Ltd. (hereinafter referred to as “Shengyun Environmental Protection”) signed the “Waste Incineration Power Generation””Project Investment Cooperation Framework Agreement”, this time the company and Shengyun Environmental Protection signed the “Asset Transfer Agreement” for the acquisition of Haiyang Project, Jining Phase II Project, Xuancheng Phase II Project and some Ulan Qab Project Projects under construction.Assets include Haiyang Project (500 tons / day), Jining Phase II project (800 tons / day), Xuancheng Phase II project (1000 tons / day) and Ulanchabu project (1200 tons / day)., Which totaled 22348.

40,000 yuan.

  At the same time, the company’s wholly-owned subsidiary plans to sign an “Asset Transfer Agreement” with Huai’an Zhongke Environmental Protection Electric Power Co., Ltd. to acquire some of the ongoing construction assets of the Huai’an Municipal Solid Waste Incineration Power Generation Project (800 tons / day) and continue to invest in constructionThe price is 3,716.

0.6 million yuan.

The company’s acquisition 南京夜网 of Shengyun’s environmental protection subsidiary project can be included in the project construction time to accelerate the nationwide waste incineration power generation business layout. The project construction will be completed gradually in the future, which can increase the operating scale by 4,300 tons / day.

In recent years, the company has gradually promoted its large-scale solid waste strategy. The waste incineration power generation business has continued to expand across the country. At present, it has ranked first in the country. The solid waste disposal business has achieved rapid growth and has become the core driving force for performance growth.

  Continue to maintain the recommended level and maintain the company’s EPS for 1-21.

30 yuan, 1.

53 yuan, 1.

79 yuan, corresponding to PE is 14 times, 12 times, 10 times. The company’s large solid waste strategy continues to advance, and the waste incineration power generation business will gradually move towards the future, overlapping food waste treatment, sludge treatment, hazardous waste treatment, and front-end waste classificationAnd environmental and sanitation business, to achieve horizontal and preliminary business expansion, we are optimistic about the company’s future long-term development space and continue to maintain the “recommended” rating.

  Risk reminder: Project progress is not as expected, and orders are not as expected