In an unrated report on Thursday, CLSA analyst Johnny Lau believes CJE will have the chance to increase over 70% of its WTE capacity from now till 2020.
CJE uses Circular Fluidised Bed (CFB) incinerator which can treat waste with low calorific value, enabling the company to expand its footprint in more locations than others.
“According to the company, its CFB is more adapted to municipal solid waste with low calorific value, which could be found in some regions in China. That is one reason why the company has the most geographically diverse project distribution, from the northern regions such as Inner Mongolia, to the southern regions such as Yunnan,” says Lau.
From 2013 to 2016, CJE’s net profit has also increased 116% to RMB598 million ($121.5 million), while revenue increased 106%. This is mostly driven by the increase in power sales, construction revenue, as well as technical and management services.
CJE is trading 1 cent higher at 89 cents on Friday.
