PYHB(SZ:300664)2024-12-05 10:13Group 1: Project Overview - The strategic cooperation agreement was signed on March 3, 2023, between the government of Panjin City and Pengyao Environmental Protection Co., Ltd., to invest CNY 120 million in a bio-diesel project [2] - The project aims to establish an advanced bio-energy production base in Panjin City, utilizing a new boiling bed hydrogenation technology to produce second-generation biodiesel and bio-jet fuel products [2] Group 2: Production Timeline and Efficiency - The SAF (Sustainable Aviation Fuel) facility is expected to complete upgrades by August 21, 2024, with trial production commencing on that date [3] - As of September 3, 2024, the overall product yield is 82%, with SAF yield at 55%, HVO yield at 14%, and bio-light oil yield at 13% [3] Group 3: Raw Material and Cost Structure - The primary raw material is UCO (Used Cooking Oil), sourced from collection points in surrounding provinces, with processing costs ranging from CNY 1,500 to CNY 3,000 per ton [3] - The market price of UCO has decreased from approximately USD 900 per ton to around USD 800 due to the cancellation of export tax rebates, which is beneficial for cost reduction [3] Group 4: Sales and Market Strategy - The main sales channels are directed towards the European market, with orders influenced by market prices [3] - The company has not yet begun the airworthiness certification process but plans to initiate it soon [3] Group 5: Competitive Advantages and Future Outlook - Pengyao Environmental Protection operates under a light asset model, which reduces fixed asset depreciation costs and enhances profit margins compared to competitors [3] - The company’s traditional water service business provides stable cash flow and profit, supporting its long-term development in the biodiesel sector [4] - Future SAF price trends will be influenced by supply-demand dynamics and the implementation of carbon neutrality goals, with expectations of price increases due to insufficient supply in the short term [4]