21 Jan 2019

Crosby Research: Canvest Environmental (1381 HK/BUY): Maintaining its annual capacity target

Canvest announced a new WTE PPP project this morning. The new project is located in the Mancheng District of Baoding, Hebei (河北省保定市滿城區) and was awarded by the local government with 30 years of concession period, with a total designed daily MSW processing capacity of 1k tons and shall be constructed in two phases (Phase I: 500 tons, Phase II: 500 tons). The Mancheng project was Canvest’s first project won in FY19. Together with the previous two new projects announced in Dec 2018, Canvest won 4k tons/day of new capacity in FY18 & Jan 2019 in total, all awarded by local government. The first new project was announced in Dec 2018, which was in Linfen, Shanxi province (山西省臨汾市) with designed MSW processing capacity of 1.2k tons/day (Phase I: 800 tons, Phase II: 400 tons). The second project, which was also announced in Dec 2018, was in Zaozhuang, Shandong province (山東省棗莊市) with designed MSW processing capacity of 1.8k tons/day (Phase I: 1,000 tons (in operation), Phase II: 800 tons). More importantly, all of the three new projects are Canvest’s first project won in the respective provinces. Stepping out from its home-base Guangdong, the company targets to be a national WTE operator in the future.