Yingfeng Environment (000967) Dynamic Research: Sanitation Leads Integrated Environmental Protection Platform
Transformation from equipment manufacturing to environmental protection is committed to creating a comprehensive environmental service provider.The company was formerly known as Zhejiang Shangfeng Industrial Co., Ltd. In 2006, Yingfeng Investment Holding Group Co., Ltd. became its major shareholder through the transfer of equity.In 2015, it successfully entered the environmental protection industry through the acquisition of Yuxing Technology Development (Shenzhen) Co., Ltd. and Green Oriental Environmental Protection Co., Ltd., which was later called Yingfeng Environment.In 2016, the company acquired 100% equity of Dasheng Global, 100% equity of Minghuan Limited, and 55% of Liangke Environmental Protection’s distribution of sewage treatment and ecological restoration business.In November 2018, the company issued shares to purchase 100% equity of Changsha Zoomlion Heavy Industry Environmental Industry Co., Ltd. (hereinafter referred to as “Zhonglian Environment”), occupying an important place in the field of sanitation equipment and sanitation services.At present, the company’s comprehensive environmental service provider’s strategic layout has been completed, forming a business environment of “environment monitoring + water environment treatment + solid waste full industry chain”, and the environmental protection business’s competitiveness has been continuously enhanced. Acquired Zhonglian Environment, opened the entire solid waste industry chain, and led the company’s business.The main business of Zoomlion Environment includes sanitation machinery, urban garbage collection and transportation, and disposal, rural garbage collection, transportation and disposal, domestic garbage resource utilization, and kitchen and kitchen garbage resource utilization.The main products of sanitation machinery are in the leading position in the industry. At the same time, they are strengthening their business expansion and vigorously developing sanitation services.China United Environment’s 2018-2020 results are no less than 9 for net profit.97/12.30/14.USD 9.5 billion will have a positive impact on the company’s performance. At the same time, it can form a synergy with Green Oriental in the future and open up the entire industry chain of “equipment manufacturing + sanitation services + solid waste treatment”.In 2018, Zoomlion’s environmental sanitation equipment sales were about 2.270,000 units, an annual increase of 20%, the market share ranks first in the industry; a total of 80 million contracts for environmental sanitation operation service projects, an increase of 80.2%, ranking fourth in the country. The environmental monitoring business and comprehensive environmental governance solidify the foundation.The company’s wholly-owned subsidiary, Yuxing Technology, has intensified competition in the domestic environmental monitoring field. In 2018, it received nearly 700 environmental monitoring business market orders, an 佛山桑拿网 increase of 44%, among which it won the national surface water monitoring project1.USD 1.3 billion, showing the company’s environmental monitoring product competitiveness.Environmental governance key high-quality projects, timely contraction, adjustment of environmental protection engineering projects such as PPP risk prevention.In 2018, the company’s environmental monitoring and governance business realized operating income.55 ppm, with a ten-year average of 4.03%. Increased executive holdings demonstrate confidence.Since November 2018, Mr. Ma Gang, Chairman and President of the company, Mr. Liu Kaiming, Vice President, Mr. Lu Anfeng, Vice President, and Mr. Jiao Wanjiang, Chairman of the Supervisory Board have increased their total shareholdings by 308.70,000 shares, a total increase of 19.34 million yuan, the average price of the increase is 6.18-6.48 yuan / share.We believe that the increase in executive holdings demonstrates their confidence in the company’s future long-term development. At the same time, combining the interests of executives with the interests of the company is conducive to the stability of the two companies and the long-term development of the company. Covered for the first time, giving the company a “Buy” rating: We are optimistic about the company’s market competitiveness in the field of sanitation equipment and sanitation services after acquiring Zhonglian Environment.The opening of the solid waste industry chain will enable the company to continue to benefit from the broad development space of the solid waste industry brought about by the “non-waste city” and environmental protection marketization.Environmental monitoring, comprehensive environmental management and other businesses provide stable growth for the company.We expect the company’s EPS for 2019-2021 to be 0.47, 0.57 and 0.65 yuan / share, corresponding to the current maximum PE is 13.61, 11.10 and 9.70 times coverage for the first time, giving the company a “Buy” rating. Risk warning: the project construction progress is not up to expectations; the competition in the industry is intensifying; the merger and acquisition integration is less than the expected risk; the future performance of Zoomlion Environment is lower than expected.