Home 洗浴Capital Group (600008): Environmental protection business integration platform affiliated to Capital Group: Leading water industry leader

Capital Group (600008): Environmental protection business integration platform affiliated to Capital Group: Leading water industry leader

Capital Group (600008): Environmental protection business integration platform affiliated to Capital Group: Leading water industry leader
Guide to this report: The main business of the company’s headquarters is still focused on engineering and operations such as sewage treatment and river course management, maintaining a steady growth.The Hong Kong-listed environmental protection platform is mainly engaged in solid waste disposal.After years of 杭州桑拿网 accumulation, it has entered a period of accelerated production capacity. Investment highlights: Investment advice: The EPS for 2019-2021 is expected to be 0.17 yuan, 0.20 yuan and 0.24 yuan.With reference to the average assessment level of the industry, and considering that the company’s water business has significant leading barriers, it will be given 20 times the dynamic PE in 2019 with a target price of 3.4 yuan.Covered for the first time, giving a neutral rating. Leading in the water industry, with the third largest market share in terms of production capacity: the company’s largest shareholder, Capital Group, holds 46 shares.06%, and it is a wholly-owned enterprise of Beijing State-owned Assets Supervision and Administration Commission.As of the end of 2018, the company’s water supply volume was 1403 per day / day, and the sewage treatment capacity was 1226 per day / day.It is the company with the largest A-share water assets, ranking second only to Beijing Enterprises Water and Guangdong Water Resources in terms of market share, ranking third in the country.The company’s existing reserve capacity scale is 413.Every day, the expansion elasticity equivalent to the existing capacity scale is 16%, and the release of reserve capacity will become the main source of performance elasticity in 2019-2021. Hong Kong stock solid waste disposal platform pioneered the environment (3989.HK) enters the period of accelerated production capacity: The company holds Capital Environment (3989) through its subsidiary, Capital (Hong Kong) and Capital Capital Huaxing.Hong Kong) 66.91%, as a solid waste disposal business platform, turned into a profit in 2016 after the New Zealand domestic waste project and the Singapore hazardous waste sludge project were injected.In 2018, the company’s waste incineration business, which has been in storage for many years, entered a period of accelerated production capacity release, and ushered in a long period of internal acceleration.In the future, it will become the most important performance increase of the company beyond water.The pioneering environment accumulated over many years has become a comprehensive solid waste business disposal platform, covering domestic waste collection and transportation, disposal of kitchen waste, industrial solid waste and hazardous waste disposal, electronic replacement and dismantling, etc., to initiate the allocation of shares and help the transportation of reserve capacity:The company will start a rights issue financing in 2019, and it plans to issue 17 shares at a ratio of 10 to 3.0.6 billion shares.At present, the company has responded to a feedback from the China Securities Regulatory Commission, and the completion of the conversion of future share placements will help the company to release its reserves. Risk warning: The load of new investment water projects generally exceeds mature capacity, affecting the overall gross profit margin.