China Merchants Securities continue to support God fog environmental protection "disruptive new technology"

In the "God fog fog" was questioned by Ye Tan, China Merchants Securities environmental team had the first time to support the Shenwu fog. Yesterday, China Merchants Securities published a research report, continue to be optimistic about God fog environment. The report said that the project of the first complete chain of Shenwu environmental protection is expected to be put into operation by the middle of next year, which will bring about the remodeling of the pattern of coal consumption and activate the new market of 1 trillion calcium carbide. China Merchants Daily reported that the target price of Shenwu Fluorite's environmental protection raised from RMB62.75 / share to RMB63 / share in March, giving the rating of "highly recommended" and only guarding against the "broader market systemic risk." This is 12% above the company's closing price of 30.37 yuan / share on June 12. God fog environment June 12 simultaneous disclosure of investor relations activity record shows June 4, the company chairman Wu Daodong, Board Secretary Lubang Jie and other investors, including the acceptance of the China Fund, including Lu Jiawei, Zhu Chunyang China Merchants Securities, including 9 investors Research. From the company interactive platform point of view, in addition to Hebei Bazhou, Shenwu fog is still June 9 "should be based on the request of the small shareholders on-site research activities," arrangements for research company Inner Mongolia Gangyuan project research. At present there is no disclosure Bazhou and Hong Kong original research record. The target price doubled Comprehensive information from all parties, Shenwu in Bazhou has two businesses, including garbage pyrolysis project is Shenwu Group's business, acetylene hydrogenation of ethylene is Shenwu environmental protection business. According to research reports, Bazhou research is the main study of ethylene acetylene hydrogenation project. Research Report of China Merchants Securities tries to explain to the market a more complete explanation of the "disruptive new technology" of Shenwu Environment. According to the comprehensive investment promotion and company interactive platform information, Shenwu Environmental has a new type of chemical production technology of "coal-calcium carbide-acetylene-ethylene". Strictly speaking, from 1950 to the present, no other competitors at home and abroad have adopted the " - acetylene - ethylene "layout. China Merchants Securities said that as of now, Shenwu Group is advancing the acetylene process coal chemical projects a total of 10, a total investment of 90.9 billion yuan, the annual revenue of 13.0 billion yuan, of which a total of seven acetylene legal polyethylene project, a total of 3.6 million tons of polyethylene With a total investment of 88.9 billion yuan. Acetylene coal chemical industry to produce ethylene and expand downstream products, is expected to open a new trillion-level market space. Under the "trillion-tier market," China Merchants Securities is also confident about the price of Shenwu Environmental Protection. Reported that the company has more than 200 billion orders in hand, the expected future orders will continue to grow, is expected to 2017 net profit attributable to parent company is expected to be 1.4 billion in 2018 is expected to achieve net profit attributable to parent company 2.54 billion In 2018, the valuation of 25 times PE will give a target market capitalization of 63.5 billion yuan. 2016 Shenwu fog environmental profit of 705 million yuan, the current dynamic PE is about 43.26 times. To June 30 closing price of 30.37 yuan / share basis, Shenwu fog environmental protection given from the 63 yuan / share target price of shares there is more than 100% of the space. Recently, other brokerages have also reported that God fog environment protection. After the company clarified and queried and resumed trading on June 5, Guoxin Securities released a research report that the company's earnings for 2017 to 2019 are estimated to be 1.491 billion yuan, 2.17 billion yuan and 2.91 billion yuan respectively. Maintain the "Buy" rating, indicating that the risk is "Item Construction progress is lower than expected ", but did not directly give the target price; CICC predicts 2017 net profit of Shenwu about 1.24 billion yuan, rating" recommended "and maintain the target price of 40 yuan / share. In the second half will be "more real" data Research records show that there are investors on-site questioning "The market is most concerned about the company's new technology can really make money, this is the focus." God fog environmental protection made it clear that "from the world of industrial technology, indeed no one to do acetylene + hydrogen, but behind such a big market, we must insist on doing." God fog environment will be the company acetylene process known as the "fourth industrial route." Integrated Shenwu environmental protection response, the use of God fog environmentally friendly "coal - calcium carbide - acetylene - ethylene", the final product and the current traditional method than any without any difference, but the main product conversion rate is high. In the traditional oil production line, ethylene accounts for 30% to 40% of the inside. The use of God fog environmental technology, ethylene conversion rate of more than 90%, and the quality is higher than the oil law. Compared with the coal gasification process, the investment in acetylene process coal chemical new technology tons of coal fell 28%, energy efficiency increased 27%, water consumption decreased 51%, carbon emissions decreased 37%, the cost reduced by 18%, with significant investment, energy efficiency , Environmental protection and cost advantages. From the disclosure of the situation, Shenwu fog environmental integration of by-products makes the economic benefits of this new technology even more attractive: the gas can be made by-product of oil, less gas can be done, or methanol. For example, 400,000 tons of calcium carbide plant by-product 20,000 tons of coal tar, 1800 yuan per ton price now, there are 36 million yuan of income. God fog said the current Hong Kong project of calcium carbide production data is already strong evidence, but now the original data is not the final data of Hong Kong, until October to November after the completion of the transformation of the three production lines will have 100 million cubic meters of LNG natural gas , There will be more comprehensive and more realistic data, the added value will be high. Shenfu fog for the market focused environment-friendly business model, research is also involved. Investors have asked questions, "Acetylene chemical projects in large quantities, Shenwu put a little money, you can leveraging a lot of investment, product gross profit is high, investors will soon see the cash back? Shenwu fog environmental response is "We do not think we should use" leveraging "the word, a little leveraging of the project will gather nearly 10 billion of funds, we are part of the equity investment projects, we are independent investment decisions. If by the time Project benefits are very good, we will rush to vote. The project has government investment, a large industrial funds, banks are happy to support, especially in the case of calcium carbide products. According to the company's 2016 annual report, of the top five customers of Shenwu Environmental Protection, three are related parties to Shenwu. In 2016, revenue accounted for 41.8% of Wuhai Shenwu, Shengwoo of Xinjiang (33.14%) and Baotou New Energy (formerly related parties, 4.23%), accounting for 78.55% of the total sales. In response to the inquiry letter from the Shenzhen Stock Exchange, Shenwu Fog said that in the future, the above three projects will all increase their capital, introduce a certain percentage of government investment, substantially increase social capital and enhance the capital strength of the Company, and their relationship with Shenwu will be diluted.