Increase fund-raising to alleviate financial pressure, help project implementation and improve profitability.
This fund-raising will effectively alleviate the financial pressure of the company. on the one hand, it will provide guarantee for the smooth implementation of the sewage treatment project and the energy station project, and after the fund-raising project is completed, it will further expand the company's existing business scale of sewage treatment (new production capacity of 150000 tons / day) and cooling and heating (new area of 671000 square meters), improve business income and profitability, and will help the company's business expansion. On the other hand, the company's financial structure will be optimized, the asset-liability ratio will be reduced, and the sustainable operating ability will be enhanced; at the same time, the financial expenses will be reduced, which will help to enhance the company's profitability.
Sewage treatment orders have been continuously enriched, laying the foundation for sustained and rapid growth.
In June this year, the company signed an agreement to upgrade four sewage treatment plants in Tianjin (in-situ bid-raising reconstruction + expansion of 100000 cubic meters / day), Beichen (in-situ bid-raising transformation + expansion of 50, 000 cubic meters / day), Dongjiao (200000 cubic meters / day) and Xianyang Road (relocation and bid raising, the scale remains the same). Upon completion, the scale of sewage treatment will be increased by 350000 cubic meters per day. At the same time, the company strengthens the market development of sewage treatment business, and recently won the bid Yingshang County sewage treatment Plant BOT project (40,000t / day) and Ningxiang Jingkai District sewage treatment plant PPP project (150000 tons / day, of which the first phase is 50,000t / day), the two projects will increase the sewage treatment scale by 190000 tons / day. The bid raising, transformation, capacity expansion and market development, and the continuous abundance of orders for sewage treatment projects have laid a solid foundation for the company to achieve sustained and rapid development.
Accelerate the promotion of transformation and upgrading, and the room for growth is expected to continue to open.
The company's strategy is located in the water environment integration solution provider, while tamping the main water business, accelerate the promotion of diversified business layout. 1) external sales of deodorization business of urban sewage treatment plants; 2) steady expansion of new energy cooling and heating business; 3) trial of financial leasing business to cultivate new profit growth points; 4) layout of PPP field, growth flexibility is expected. Diversified business development will accelerate the pace of transformation and upgrading of the company, and is expected to open up room for sustainable growth for the company.
Profit forecast and investment advice.
Leaving aside the dilution of the equity of this non-public offering, we predict that the company's EPS in 2016-18 will be 0.270.31 and 0.35 yuan per share, respectively, and the corresponding PE will be 30X/26X/23X, which will continue to maintain the "overweight" investment rating.