NANFANG PUMP(SZ:300145)2022-12-05 02:24Company Overview - Zhongjin Environment was established in August 1991 and listed on the Shenzhen Stock Exchange in 2010, initially focusing on stainless steel pumps for water supply and HVAC applications [2] - The company has transformed into a leading domestic manufacturer of stainless steel centrifugal pumps, facing competition from major overseas pump manufacturers [2] Business Transformation - In 2015, the company entered the environmental protection industry, starting with wastewater and sludge management [3] - Acquired environmental assessment and design service companies in 2016 and 2017, leading to increased new orders in engineering and traditional manufacturing [3] - Full acquisition of hazardous waste treatment company Jintailai in 2017, enhancing its position in the hazardous waste sector [3] - In late 2018, Wuxi Municipal Government became a major shareholder, providing state-owned support for growth [3] Recent Developments - In 2019, the hazardous waste segment partnered with Anglo American to enter the precious metal recovery business, achieving an annual production capacity of 20 tons of platinum group metals [3] - The company is actively applying for an additional 100,000 tons of hazardous waste treatment capacity [3] - The design and surveying segment is focusing on resource integration and potential spin-off for public listing [3] Financial Performance - The company has significantly reduced financing costs since Wuxi Municipal Government's involvement, achieving the lowest rating among AA-rated companies for short-term financing and medium-term notes in 2019 [3] - The recent government guidelines on modern environmental governance are expected to further benefit the company, indicating a supportive regulatory environment for the environmental protection industry [3] Hazardous Waste Management - Jintailai's chairman highlighted the challenges in the hazardous waste sector, including high costs due to lengthy approval processes for medical waste projects [4] - The company anticipates positive changes in the medical waste industry over the next 3-5 years due to increased government investment [4] - Jintailai has achieved a comprehensive coverage from harmless treatment to resource recovery in hazardous waste management [5] Capacity Expansion - The company plans to increase its hazardous waste treatment capacity from 180,000 tons to 280,000 tons by applying for an additional 100,000 tons of qualifications in 2020 [5][6] - The approval process for new capacity has been slow, but the demand-supply dynamics in the hazardous waste sector remain favorable [6] Technological Advancements - The company has developed a "hazardous waste vitrification melting technology," which has passed expert evaluation and is ready for trial production [6][7] - This technology allows the company to handle waste residue internally, reducing disposal costs significantly [7] Future Outlook - The company is optimistic about the future of the hazardous waste industry, expecting stronger market support for larger, more capable enterprises [6] - The increasing regulatory standards in the automotive sector are anticipated to create more opportunities for the recovery of platinum group metals [6][7] Shareholder Engagement - The major shareholder's commitment to increasing their stake is ongoing, with plans to address competition issues within 60 months [8]