The market leader of waste heat power generation. The company is the only platform under Sinopec specializing in waste heat power generation, and it is also the leading enterprise in the domestic waste heat power generation market. the core technology is low temperature waste heat power generation, which mainly serves cement and other industrial fields. low temperature waste heat power generation system has been designed and equipped in more than 300 cement kiln production lines at home and abroad, and the market share has reached 22.95%. At the same time, more than 20 projects have been achieved in iron and steel, chemical industry, non-ferrous and other high energy-consuming industries.
Create a complete industrial chain of waste heat power generation. The company pays close attention to the field of comprehensive utilization of waste heat and pressure to create a complete industrial chain to provide customers with a variety of business models and customized products and services, including engineering design (E), complete sets of equipment (EP), engineering package (EPC), EMC and BOOT and so on. The company plans to further acquire and control Nantong boiler, thus extending the industrial chain to the upstream manufacturing of key equipment for energy saving and environmental protection, which is expected to become a new profit center of the company in the future.
The market prospect of waste heat power generation is broad. The primary energy utilization rate in China is only about 30%, and there is a huge waste in energy utilization, of which the waste heat resources available for recovery in the industrial industry alone account for 10.2% of the total fuel consumption. 40.2%. Since the Eleventh five-year Plan, the state has issued a number of policy plans to vigorously advocate and support the comprehensive utilization of waste heat and pressure, and the waste heat power generation in the cement industry has approached the international advanced level, but the utilization of waste heat and pressure in other high energy-consuming industries is still in its infancy and has a broad market prospect.
The two "external development" are the main drivers of growth. Since 2012, due to the impact of the macroeconomic environment, the company's main downstream industries continued to be depressed, which had an impact on the company's performance to a certain extent. The company's 12-13-year net profit fell 38.9% and 33.6% respectively compared with the same period last year. The company has signed more than 1 billion new orders in 13 years, an increase of more than 50% over the same period last year. With the gradual confirmation of orders, 14-year performance is expected to stabilize and pick up. We believe that the main driving force of the company's future performance growth comes from two "external development", that is, the development of waste heat power generation other than cement and the development of international markets with low popularization rate of waste heat power generation in India, Central Europe and other countries.
The reasonable pricing range of the company is 5.6-7.0 yuan. The investment projects include: Wuhan equipment manufacturing R & D base, Xishui, Qujing Kungang BOOT project, Xingguang Coal, Yongchang Silicon EMC project. Under the assumption of 80 million newly issued shares, we estimate that the fully diluted EPS of the company in 14-16 years is 0.28,0.32 and 0.36 yuan respectively. With reference to the corresponding valuation level of comparable companies in the industry over the past 14 years, we think that the reasonable pricing range of the company is 5.67.0 yuan.
Risk factors: the downstream industry remains in the doldrums; the development of new areas is not as expected.