The prospect of waste heat power generation industry is good.
Waste heat power generation technology refers to the recovery of a large number of waste gas and waste heat from production in the process of cement and other industrial production to drive the generator to generate electricity. China's primary energy efficiency is 30%, which is 3% lower than the world average, and there is a huge waste of energy. According to statistics, the total waste heat resources of various industries account for about 17% of their total fuel consumption, of which the recyclable waste heat resources are about 60% of the total waste heat resources. that is, the recyclable waste heat resources is about 10.2% of the total fuel consumption. 40.2%. According to our estimates, the annual demand for waste heat power generation equipment in the cement industry is 6 billion yuan, while the glass and steel industries are also about 5 billion yuan. If metallurgy, carbon and other industries are taken into account, waste heat power generation still contains huge room for development.
The company is the leader of low temperature waste heat power generation in cement industry.
Sinopec energy conservation mainly serves the cement and other industrial fields, and has designed and equipped low-temperature waste heat power generation systems for nearly 300 cement kiln production lines at home and abroad, with a domestic market share of 22.95%. The company has also become the leading service provider in the overseas cement waste heat power generation market among domestic enterprises in the same industry. Sinopec, the actual controller of energy saving, is the largest cement production line contractor in China and even in the world. Relying on the advantages of major shareholders, the company can be guaranteed in obtaining EP/EPC orders and BOOT/EMC operations.
Analysis of fund-raising projects
After deducting the issuing expenses, the net capital raised by the company is 251.2 million yuan, and the investment includes the construction of Wuhan hospital base, 2 BOOT projects and 2 EMC projects. After all the five fund-raising projects are implemented, the average annual income and after-tax profit will be increased by 470.3352 million yuan and 60.8645 million yuan respectively.
Profit forecast
We forecast that the net profit of Sinopec Energy Saving from 2014 to 2016 is 114 million, 139 million and 161 million respectively, and the EPS is 0.28,0.34 and 0.39 yuan respectively, with a three-year compound growth rate of 20.9%. Considering Sinopec's leading position in the cement industry and the competitive advantage brought by its actual controller, it is given a valuation level of EPS25-30 times PE in 2014, with a reasonable price range of 7-8.4 yuan per share.