The company is a leader in cement waste heat power generation, and has designed and equipped a low temperature waste heat power generation system for nearly 300 cement kiln production lines at home and abroad. On the basis of stable cement waste heat power generation business, the company actively explores downstream business opportunities such as iron and steel, chemical industry, non-ferrous metals, glass and so on. The company's investment projects include: Wuhan Institute of equipment manufacturing R & D base, two BOOT projects, two EMC projects. Among them, Wuhan Institute's R & D and manufacturing capacity in the fields of waste heat power generation and new building materials will be further enhanced.
Cement waste heat power generation leading enterprise. The company is engaged in energy-saving service business in the field of comprehensive utilization of waste heat and pressure. It has core technology in low temperature waste heat power generation. The company's downstream customers are mainly in the cement field, and have designed and equipped low-temperature waste heat power generation systems for nearly 300 cement kiln production lines at home and abroad.
Based on cement, actively expand downstream. On the basis of stable cement waste heat power generation business, the company actively explores downstream business opportunities such as iron and steel, chemical industry, non-ferrous metals, glass and so on. At present, it has achieved outstanding achievements in more than 20 projects and more than 30 production lines in this field.
The market space of cement waste heat is limited, and the CDQ market is worth looking forward to. In China's new dry-process cement production line, the waste heat allocation rate of the production line with transformation conditions is about 75%, and there are few customers worth exploiting. In comparison, we think that the market space in areas such as coke dry quenching is more to look forward to. At present, the proportion of CDQ waste heat power generation equipment in China is 50%, and the potential market space may reach 13.5 billion yuan. At present, the company has obtained coke dry quenching projects from Wanshan Group, Qiangui Tianneng Coking and other companies. The further expansion of business in the future is worth looking forward to.
The industry is highly concentrated, and the company is the leading enterprise. The waste heat power generation service industry requires the service side to have rich project experience and mature technology accumulation. On the whole, the concentration of the industry is high. The company, together with Conch Kawasaki, Nanjing Kaisheng and Yishida, occupy about 70% of the cement waste heat market. Among them, the company's share ranks first, about 23%.
The fund-raising project further enhances the R & D and manufacturing capacity of Wuhan Institute. The company's investment projects include: Wuhan Institute equipment manufacturing R & D base, Xishui, Qujing Kungang BOOT project, Xingguang Coal, Yongchang Silicon Industry EMC project. After the project reaches full production, it is estimated that the annual revenue will increase by 470 million yuan and the net profit will be 60.8645 million yuan. Among them, Wuhan Institute's R & D and manufacturing capacity in the fields of waste heat power generation and new building materials will be further enhanced.
The reasonable value range of the company's stock is 5.04-6.16 yuan. We predict that the company's earnings per share from 2014 to 2016 will reach 0.28,0.38,0.47 yuan. With reference to the valuation level of the same industry and the growth rate of the company's performance, the company is given a PE of 18-22 times in 2014, with a corresponding value range of 5.04-6.16 yuan.
The main uncertainty of the company. The process of fund-raising project is not up to expectation, and the risk of market competition.