Shanghai Environment (601200): Shanghai famous solid waste leader enjoys high growth

Shanghai Environment (601200): Shanghai famous solid waste leader enjoys high growth

State-owned enterprise assets were reorganized and listed, and the strength of the solid waste sector was strengthened. Urban Investment Holdings-related environmental groups integrated the Yangchen B shares and landed on the A-share main board. It is the leading environmental management company in Shanghai.)) And municipal sewage (capacity accounts for 23% of Shanghai (2018)), and actively expand municipal sludge / hazardous medical waste / soil remediation / solid waste recycling.

The release of incineration capacity is expected to drive high growth in 2020-2021. Wastewater treatment benefits from price increase flexibility. EPS 0 is expected in 19-21.



97 yuan, with reference to 25x average PE of comparable companies in 19 years, recognized to enjoy a certain premium, given 25-26 times PE conversion in 19 years, target price of 14.


56 yuan, the first coverage given a “buy” rating.

Leading solid waste in Shanghai, the release of incineration capacity is expected to drive high performance growth in 2020-2021 and the delay will be at the end of August 19, and the company has put into operation incineration / transition / landfill capacity 2.



66 lowest price / day, and at the same time was commissioned to operate the first and second phase (0.

30,000, 0.

6 days / day).

Benefiting from the background of state-owned enterprises and the newly introduced incentive mechanism, the company’s 18-year order acquisition was significantly accelerated, and the company terminated 19.

At the end of August, the waste incineration under construction / proposed capacity reached 1.

47 days / day (Shanghai Fuwai’s production capacity accounts for 86%). According to the two-year construction cycle, we expect that all production will be put into operation by 2022, which will support the continuous growth of the solid waste sector.

The quality of the company’s key projects is profitable, and the projects under construction / projects under construction IRR 18 have been put into operation.

3% / 17.

6%, the total NPV of projects in hand accounted for 79% of the market value (2019/9/19), ranking the forefront of comparable companies.

Sewage treatment benefits from price increase flexibility. Soil remediation / recycling of solid waste is in the growth stage. Sewage treatment: 192 emissions / day of production capacity in operation, 6 replacements / day of capacity under construction.

Among them, Zhuyuan No. 1 Plant is in the stage of upgrading and upgrading, and we expect it to be 2020.

It officially started operation in January, with a design capacity of 170 replacements / day instead of 110 replacements / day. The unit price of sewage treatment can be increased to 1.

4 yuan / ton (0 before bidding.

59 yuan / ton), we estimate that the net 厦门夜网 profit of Zhuyuan Water Plant in 2020 is expected to reach 2 in 2020.

100 million (1 in 18 years.

3 billion).

Soil remediation: Relying on the Shanghai Environmental Sanitation Engineering Design Institute to arrange soil remediation in Shanghai in advance, and accelerating in 18 years.

Recycling of solid waste: The waste separation has spread, and the kitchen and kitchen waste have benefited. The company is currently constructing the Songjiang wet waste project (530 tons / day), and the Jiading wet waste project (570 tons / day) is expected to be put into production by the end of 19/20It will effectively alleviate the problem of insufficient food waste treatment capacity in Shanghai.

Hazardous waste medical waste: Looking forward to the breakthrough of asset injection and the major shareholder of the under 武汉夜网论坛 construction project, Shanghai Urban Investment Group, the strength breakthrough, promised to be in 2020.

Before March, other environmentally-controlled assets such as sewage and solid waste controlled by the Group were injected into the listed platform: mainly including Shanghai Solid Waste Disposal Co., Ltd. (hazardous waste landfill 3 per year / + medical waste incineration 3).

876 intake / year), Laogang solid waste disposal center (8 spindles / year for medical waste incineration, under construction), Laogang fly ash landfill (88.

50 thousand m ^ 3).

Nanchong Jiayuan Project (Hazardous Waste 6.)

(6 is the lowest each year and is expected to be put into operation at the end of 19) and Yongcheng Solid Waste (Hazardous Waste Production Capacity) 1.

32 years / year), the group and listed companies have a total of 23 years / year of hazardous waste at hand.

Stepping into the accelerated growth period, the first coverage is given a “buy” rating. We expect EPS0 in 19-21.


76/0.97 yuan, which currently corresponds to 19-20 years PE20 / 15/12 times.

With reference to the 25x average PE of a comparable company in 19 years, considering that the company is a leader in Shanghai solid waste, the project in hand is of high quality, and the Group’s asset injection is expected, it should enjoy a certain estimated premium, given a PE estimate of 25-26 times in 19 years, and a target price of 14.


56 yuan, covering the “Buy” rating for the first time.

Risk warning: There is a risk of downward adjustment of the electricity price of waste-to-energy; the project progress is not up to expectations; operational risks.