Conclusion: the reasonable pricing range of the company is 7.02-8.58 yuan, and the suggested inquiry range is 3.38-3.90 yuan. Assuming that 80 million shares are issued, the EPS of the company in 2014-2016 is expected to be 0.26,0.34,0.45 yuan respectively. With reference to the valuation level of the comparable company and the environmental protection industry, assuming that the company does not overraise, we think that the reasonable pricing range of the company is 7.02-8.58 yuan, and the recommended inquiry range is 3.38-3.90 yuan.

Externally driven: the company's main business is supported by national policies and has a certain market position in the industry, and there is a huge demand and development space for the waste heat recovery industry in the future. Since 2004, the state has issued a series of powerful policies to encourage the development of waste heat power generation and its related energy conservation and environmental protection undertakings; the company has the highest market share, has a certain industry status, and has a certain say in the market; there is a gap between China's energy efficiency and the average level of developed countries and the world, energy waste forms a huge waste heat resources utilization market, and there is more room for development in domestic and foreign waste heat resources utilization markets in the future.

Internal drive: the company continues to expand new business areas, strong shareholder background, scientific research and technological advantages. In 2014, the growth rate of operating income and net profit became positive, and based on the advantages, the company continued to expand non-EPC, non-domestic and non-cement businesses, that is, 1) based on the traditional type of income of EPC projects, other businesses such as electricity charges also showed a growth trend under the BOOT/EMC model. 2) on the basis that the business income mainly came from within the country, the scale and proportion of overseas income remained high. 3) based on the traditional advantages of cement business, constantly expand the user market of non-cement industry. China China Materials Group Co., Ltd., the controlling shareholder, ranks among the top 500 Chinese enterprises for many years, with strong strength; the company has core technological advantages, a large and excellent R & D team, and a high proportion of R & D investment in operating income; risk factors. There are risks such as periodic fluctuations and policy regulation in downstream industries such as chemical industry and building materials; BOOT/EMC business model has the risk of uncertainty of contract agreement by local government, the risk of project implementation caused by long contract cycle, and the risk of political, economic, cultural and domestic differences and local protectionism in overseas markets.