Event overview: on May 18, the state owned enterprise reform leading group office of the State Council held a special promotion meeting on deepening the reform of state-controlled listed companies.
Overall planning and promoting the integration of state-owned assets: the meeting pointed out that it is necessary to continue to strengthen the injection of high-quality assets into listed companies. The group company should systematically sort out the unlisted and listed resources, and gradually inject the existing unlisted high-quality assets into listed companies in a planned way in combination with the actual situation. If necessary, they can also be listed separately. On the one hand, support the spin off and listing of subsidiary enterprises that are conducive to straightening out the business structure, highlighting the advantages of the main industry, optimizing the industrial layout and promoting the realization of value; On the other hand, for some group companies that lack the ability of sustainable operation, long-term loss of financing function or protracted problems left over by history, they adjust and exit or transfer to other group companies more suitable for development due to enterprise conditions.
Cecep Environmental Protection Equipment Co.Ltd(300140) asset restructuring kicked off the state-owned assets restructuring: on May 19, Cecep Environmental Protection Equipment Co.Ltd(300140) released the announcement of planning major asset restructuring. The company plans to issue shares and pay cash to purchase 100% equity of cecep environmental technology held by China environmental protection group, as well as 19% equity of cecep Shijiazhuang, 19% equity of cecep Cangzhou, 19% equity of cecep Baoding project, 19% equity of cecep Qinhuangdao project held by Hebei Construction Investment Chengde Huanneng Thermal Power Co., Ltd. has 14% equity. China environmental protection group is a platform company specialized in comprehensive treatment of solid waste under the central enterprise China energy conservation group. By the end of 2021, the company had invested, constructed and operated nearly 100 projects, with a comprehensive daily treatment capacity of more than 100000 tons, and the industrial scale ranked among the forefront of China’s waste incineration industry. The promotion of major asset restructuring will help revitalize the state-owned high-quality solid waste treatment assets, release more market value and optimize its asset structure.
Resource integration to promote the quality and efficiency improvement of the environmental protection industry: the environmental protection industry has a public attribute, and local environmental protection platform companies have strong regional advantages in obtaining relevant projects, resulting in insufficient market-oriented competition and small overall scale of industry enterprises. With the reform of state-owned enterprises entering the deep-water area, the asset securitization of the environmental protection platform under state-owned assets is expected to speed up, realize the efficient utilization of resources, and then promote the scientific and technological innovation, quality and efficiency improvement of the environmental protection industry.
Investment suggestion: this “promotion meeting” is expected to accelerate the integration of stock assets of state-owned environmental protection platforms, promote the quality and efficiency improvement of the environmental protection industry, and promote the efficient development of the industry. It is suggested to pay attention to state-owned environmental protection enterprises with the possibility of asset injection: Cecep Guozhen Environmental Protection Technology Co.Ltd(300388) , Chongqing Water Group Co.Ltd(601158) under cecep, Chongqing Sanfeng Environment Group Corp.Ltd(601827) under Ceci, Shanghai Environment Group Co.Ltd(601200) , Guangxi Nanning Waterworks Co.Ltd(601368) under Nanning Jianning water, and Guangxi Bossco Environmental Protection Technology Co.Ltd(300422) , under Guangzhou environmental protection investment group.
Risk tip: the promotion of state-owned enterprise reform is lower than expected; Industry competition intensifies; The operation level of the project is lower than expected.
