China Environment Ltd (CEL) is a provider of industrial waste gas treatment solutions in China, which is likely to benefit from the Chinese government’s increased focus on cleaning up the environment in China. The Chinese government has reiterated its stance to clean up the environment, this time with the intent to spend RMB1.7t to combat air pollution, where a key focus is on reducing the amount of PM2.5 particle in the air. With its new facility in Anhui nearing completion, which will increase its capacity to process 80k tonnes of steel to over 350k tonnes, as well as the recent RMB80m share place, CEL feels that it has sufficient working capital to take on bigger and more jobs. We currently do not have a rating on the stock. (Carey Wong)
Waste gas treatment solutions provider
China Environment Ltd (CEL) is a provider of industrial waste gas treatment solutions in China. Headquarted in Longyan City, Fujian Province, CEL designs, constructs industrial waste gas treatment systems. Its key products include Electrostatic Precipitators (ESP), Electrostatic Lentoid Precipitators (ESLP), bag-houses, and hybrid dust collectors.
Greater focus on environment
The Chinese government has reiterated its stance to clean up the environment, this time with the intent to spend RMB1.7t to combat air pollution. According to Environmental Minister Zhou Shengxian , a key task of the plan will be reducing the amount of PM2.5 particles in the air. Zhou added that the central government will add RMB100b each year to its environmental protection budget. Separately, the State Council has announced 10 new measures to fight air pollution, which require key industries to reduce emissions of major pollutions by more than 30% over the next five years.
Well placed to capture latest legalization
While the details of the Air Pollution Control Program are still being progressively announced, management believes that CEL is well placed to ride on the latest legalization to clean up the environment. CEL is currently certified and included in the manufacturer recommended list for supplying ESPs for 200mw, 300mw and 600mw thermal power projects. CEL currently owns 19 patents (with four more pending) for its technology and products. It has also just formed a JV with the College of Engineering of Peking University (COE-PKU) to engage in the R&D, industrialization and commercialization of technologies to be brought in by COE-PKU in the environmental protection sector.
New facility nearing completion
More importantly, CEL’s new facility in Anhui is nearing completion, which will increase its capacity to process 80k tonnes of steel to over 350k tonnes. Coupled with some RMB80m raised via a share placement recently, CEL adds that it has sufficient working capacity to take on bigger jobs (current order book stands around RMB241m). We currently do not have a rating on the stock.
China Environment Ltd (CEL) is a provider of industrial waste gas treatment solutions in China. Headquarted in Longyan City, Fujian Province, CEL designs, constructs industrial waste gas treatment systems. Its key products include Electrostatic Precipitators (ESP), Electrostatic Lentoid Precipitators (ESLP), bag-houses, and hybrid dust collectors.
Greater focus on environment
The Chinese government has reiterated its stance to clean up the environment, this time with the intent to spend RMB1.7t to combat air pollution. According to Environmental Minister Zhou Shengxian , a key task of the plan will be reducing the amount of PM2.5 particles in the air. Zhou added that the central government will add RMB100b each year to its environmental protection budget. Separately, the State Council has announced 10 new measures to fight air pollution, which require key industries to reduce emissions of major pollutions by more than 30% over the next five years.
Well placed to capture latest legalization
While the details of the Air Pollution Control Program are still being progressively announced, management believes that CEL is well placed to ride on the latest legalization to clean up the environment. CEL is currently certified and included in the manufacturer recommended list for supplying ESPs for 200mw, 300mw and 600mw thermal power projects. CEL currently owns 19 patents (with four more pending) for its technology and products. It has also just formed a JV with the College of Engineering of Peking University (COE-PKU) to engage in the R&D, industrialization and commercialization of technologies to be brought in by COE-PKU in the environmental protection sector.
New facility nearing completion
More importantly, CEL’s new facility in Anhui is nearing completion, which will increase its capacity to process 80k tonnes of steel to over 350k tonnes. Coupled with some RMB80m raised via a share placement recently, CEL adds that it has sufficient working capacity to take on bigger jobs (current order book stands around RMB241m). We currently do not have a rating on the stock.
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