\u3000\u3000 Beijing Sanlian Hope Shin-Gosentechnical Service Co.Ltd(300384) (300384)
Key investment points
Event: the company announced that polymetrixag, the holding subsidiary of the company, recently cooperated with circular PetCO, Ltd (“C-PET”) and fareastern Ishizuka greenpet Corporation (“fe-pet”) signed a contract for food grade recycled RPET project, with a cumulative amount of about 262 million yuan, accounting for 30% of the company’s audited operating revenue in 2020.
Large orders of food grade recycled RPET are implemented, and the advantages of overseas project verification. The company has signed two food grade recycled RPET project contracts, both of which are overseas customers and are constructed in Japan, which confirms the leading advantage of the company’s industry-leading food grade recycled polyester business. This project is food grade recycled r-PET. Details: 1) C-PET project: the project amount is about 230 million yuan. C-PET is located in Tokyo, Japan, and is composed of Mitsui & Co., Ltd., Veolia Japan KK and seven & I Holdings Co, Ltd. was jointly established. 2) Fe-pet project: the project amount is about 31.53 million yuan. Fe-pet is a joint venture between Taiwan far east group and Japan Shizuka nitrate subsidiary. Its main business is to manufacture recycled polyester (r-PET) from waste bottles and supply it to beverage manufacturers and non beverage manufacturers. Fe-pet Tokyo plant has a capacity of 50000 tons / year for waste bottles and 35000 tons / year for recycled polyester (r-PET). It will become the largest recycled polyester (r-PET) plant in Japan.
Compound shareholder linkage recovery – operation – application end, and the development of circular and renewable economy model is accelerated. This CPET project is the first joint venture of mitsy, veolia-jp and svndy, the largest trading company in Japan, whose business includes steel manufacturing / energy and recycling; Veolia-jp is a subsidiary of Veolia group, the largest environmental protection enterprise in France; Svndy is a Japanese retail giant and the world’s largest chain convenience store group. It owns 7-11 brands. The joint efforts of the three groups have innovated the capital integration and business model of the renewable resources industry, established a recycling operation application linkage model, bound upstream and downstream resources, and helped to give play to the synergy between enterprises. The clients of this project are all large overseas groups, which shows that leading enterprises attach importance to recycling and sustainable development mode, and the renewable resources industry is expected to usher in rapid development.
The policy drives the rapid opening of the recycled food grade pet market, and the company’s polyester bottle chip recycling is in a leading position in the world. The minimum content standard of recycled PET ensures the rigid demand. California of the United States stipulates that the content of recycled plastic in PET bottles will be 15% from 2022. The European Union specifies that the proportion of recycled plastic in PET containers will not be less than 25% by 2025 and 30% by 2030. Major enterprises make voluntary commitments. The company has a complete “bottle to bottle” regeneration solution, which truly realizes the closed-loop recycling of polyester with the same grade, and the recycled PET bottle chip products have reached the qualification certification level of Coca Cola, Nestle, Danone and other enterprises.
Profit forecast and investment rating: we maintain the company’s profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 185 million yuan, 249 million yuan and 320 million yuan respectively, corresponding to EPS of 0.58 yuan, 0.78 yuan and 1.00 yuan, and PE of 41x, 31x and 24x. Considering the leading advantages of the company in the field of high-end polyamide, recycled plastics and industrial AI integrated application technology, benefiting from China’s “double carbon” and global ESG policies, the company has sufficient orders and large industry space, and maintains the “buy” rating.
Risk tip: orders are not as expected, R & D risks, and industry competition intensifies
