The release of the three quarterly reports for 2014 is basically in line with expectations. In the first three quarters of 2014, the company achieved operating income of 426 million yuan, an increase of 39.63% over the same period last year. Net profit attributed to shareholders of listed companies was 75.52 million yuan, an increase of 42.36% over the same period last year, corresponding to earnings per share of 0.05 yuan, which is basically in line with expectations.
Tiantian and engineering business concentrated settlement in the fourth quarter, and the annual performance remained the same as expected. On the one hand, the company's performance growth this year comes from the contribution of Heaven and Man. As the leader of landfill leachate, Tian Man's leading market share has become increasingly obvious. At the same time, the industrial water treatment market has also been opened. However, due to the seasonal characteristics of business settlement, most of it is settled in the fourth quarter, so the company's net profit of 75.52 million yuan in the first three quarters is within a reasonable range. In the fourth quarter, in addition to the centralized settlement of heaven and earth and some engineering business, the landing and settlement of orders in the rural water market will also be significantly accelerated, and the annual performance is expected to be basically the same as expected.
The industry is good for the gradual release, the company transformation and the pace of orders are expected to accelerate. The introduction of the Clean Water Action Plan and the gradual implementation of the water rights trading system will bring good expectations for the development of the industry. in the early stage, we stressed that the future focus of the company mainly depends on three aspects: (1) order catalysis (2) the transformation of environmental protection platform companies (3) further incentives after equity straightening out. From the progress point of view, the Heilongjiang framework agreement and the landing of the corresponding local projects show that the company's rural water supply and drainage business is gradually becoming mature, and the company's leading position has been established under the spring tide started by the rural water market in the future. the landing of new orders in the fourth quarter is a logical event. The signing of a "Tripartite Cooperation Memorandum" with Aquaporin Ahammer S and Botian Environment on October 18 to promote the research and development and application of forward osmosis membrane shows that the company's transformation into a platform company of environmental protection technology has begun to move forward substantially, taking into account the fact that the company has rich experience in cooperation with foreign environmental protection technology companies, and has high certainty of smooth progress in the future.
Maintain the "overweight" rating. The company is the benchmark enterprise in China's rural water treatment market, taking the lead in the high potential and high growth market. At the same time, taking foreign environmental protection platform companies as the goal, the transformation to a cross-domain comprehensive environmental protection science and technology platform company is firmly under way. The prospect is worth looking forward to, maintaining 2014-2015 earnings per share of 0.15 PE 0.21 yuan, corresponding to 46ppm 33 times in 2014-2015. It should be emphasized that if the future rural water projects are put in place. The company's performance is adjusted upward with great flexibility, maintaining the "overweight" rating.
