Event: a few days ago, we communicated with the company about its business and future development.
Leading enterprises in the field of energy conservation, to create the vanguard of energy conservation and environmental protection Belt and Road Initiative. The company specializes in the comprehensive utilization of waste heat and pressure, and is a national leader in the field of cement waste heat power generation. at present, the company's business has been extended to glass, metallurgy, and other fields of waste heat power generation. Since 2007, the company has accelerated its entry into the international market, successfully entered Southeast Asia, South Asia, West Asia, Africa and other places, realized the development of "two foreign" markets outside the cement industry and overseas, and the layout of multi-field business is becoming more and more perfect. With the promotion of the national strategy of "Belt and Road Initiative", the infrastructure construction of neighboring countries will show substantial growth. As a large central enterprise, the company relies on the first-class engineering construction enterprises and the central material group, which the state focuses on supporting "going out". The company and its affiliated enterprises are rich in domestic and foreign resources and extensive cooperation, and the promotion of "Belt and Road Initiative" will bring historic opportunities for the development of the company.
The five plates go hand in hand, and blooming in many fields is just around the corner. The company has formed five parts: waste heat power generation, new industries, contract energy management, new building energy-saving materials and environmental protection equipment. Five major sectors of business go hand in hand, all around the large energy-saving integrated service business, the follow-up multi-point blossom is worth looking forward to.
Domestic market: profound energy-saving business, deep-rooted and carefully built into a large energy-saving comprehensive platform company. Since its establishment in 1998, after years of accumulation, the company has become a leading enterprise in the field of waste heat power generation in China, with leading technical level, sound project operation and deep foundation. In the future, the company will build deep farming into a large energy-saving comprehensive platform company, the main development directions are 1) to increase the expansion of iron and steel, chemical, non-ferrous, glass and other cement industries. 2) actively develop regional energy-saving markets, open up projects in regional or industrial parks, and provide a package of comprehensive and specialized services such as energy conservation, environmental protection and heating. 3) expand the lighting energy-saving business, cut into major energy-saving areas such as electric power energy conservation, and carry out cooperation with local governments to promote comprehensive municipal services.
Foreign markets: strengthen the development efforts, follow-up overseas orders or large-scale projects are expected to exceed expectations. The company has made remarkable achievements in overseas markets, accounting for 40% of the project contracts and nearly 30% of the main business income abroad. With the promotion of "Belt and Road Initiative", it is expected that the number and scale of follow-up projects, total revenue and share of contribution will increase. The company has won large-scale projects in Pakistan, Saudi Arabia, the Philippines and other places, with many overseas projects, the follow-up company is expected to further expand the scale and copy promotion, follow-up large overseas orders are expected to exceed expectations.
Active layout of ultra-low temperature waste heat energy saving, epitaxial expansion is worth looking forward to. The company actively explores the comprehensive utilization of ultra-low temperature heat sources and will open up the ultra-low temperature waste heat utilization market based on ORC in the future. With more than 3 billion bank credits, the company may further expand in high-end technologies, new materials and high-end equipment manufacturing, such as ultra-low temperature waste heat utilization, and the follow-up extension expansion is worth looking forward to.
Valuation and rating: from 2015 to 2017, earnings per share are expected to be 0.31,0.38,0.47 yuan respectively, corresponding to PE of 70 times, 58 times and 47 times. With the advance of "Belt and Road Initiative", the company's follow-up large orders have been obtained, lighting and other large energy-saving projects have been launched, and the industrialization and extension expansion of Wuhan Hospital products are expected to exceed expectations.
Risk hint: the risk of gross margin decline caused by competition; the project progress is lower than the expected risk.