Event
The company signed the strategic framework agreement for Baoding and signed the contract for the Guantao project. Mei Anson issued two announcements related to sewage treatment: 1) the company signed the "procurement project contract for rural sewage treatment and operation management franchise in Guantao County" with the Housing and Construction Bureau of Guantao County. 2) the company signed a "Strategic Cooperation Framework Agreement" with Baoding Guoxing City Construction and Development Investment Co., Ltd. to carry out strategic cooperation on rural sewage treatment and operation management in Baoding.
Brief comment
The PPP project in Guantao County finally landed and entered the period of large-scale installation.
The Guantao County project is jointly formed by the company and Wisdom Rural Science and Technology Co., Ltd., with a total investment of 180 million yuan to treat rural sewage from 277 administrative villages in four towns and townships of Guantao County. The construction period is 36 months and the operation period is 30 years. The price per ton of sewage stipulated in the contract is as follows: if the daily treatment capacity is less than 14600 tons / day, it shall be calculated according to 3.5 yuan / ton; if it is higher than 14600 tons / day, it will be calculated as 3.2 yuan / ton. The registered capital of the project company is 10 million yuan, of which Party A (Guantao County Housing and Construction Bureau) authorizes investors to invest 20% of the shares in the form of construction land use rights, and Party B (consortium) contributes 10 million yuan, accounting for 80% of the shares. The company's Guantao project won the bid in early February, and the demonstration station runs stably and well. after the contract is signed, it will enter a large-scale installation period and contribute to the increment of performance.
Baoding has a large demand for sewage treatment, and the order can be landed quickly.
The cooperation contents of the Baoding Framework Agreement include: 1) project investment and financing, construction and operation management in the fields of rural sewage treatment, urban black and smelly water treatment, and 2) in-depth cooperation in beautiful villages, characteristic towns, smart cities and other businesses. At present, Baoding has a population of 10.35 million, an urbanization rate of 46.65 percent, and a rural population of about 5.52 million. It has jurisdiction over five districts and 15 counties and four county-level cities in escrow. We assume that the per capita water consumption is 40L/ days, and the local rural sewage treatment rate is 15%. It is estimated that the total treatment investment is more than 5 billion yuan, and the treatment demand is large.
On the other hand, the location of Xiongan New area has serious environmental pollution, which is far from the positioning of the central planning "Green Wisdom New City". As the foothold of the new area, Baoding will bear the demand for high-intensity environmental governance. The controlling shareholder of Party A Baoding Guoxing Urban Construction and Development Investment Co., Ltd. is Baoding Chengxing Municipal Construction Investment Co., Ltd., which is the investment and financing platform for local government development and construction. We believe that Mayanson will make full use of the investment advantages of Guoxing Investment to open up the environmental management market in Baoding. The order can be landed quickly and is expected to expand to the whole country.
The technological advantages are obvious, and the pilot projects have been rolled out one after another.
The company has accumulated profound experience in rural sewage treatment: in terms of technology, through cooperative research and development, the company introduces and improves the technology of biological bacteria + activated sludge to preemptively distribute domestic rural sewage treatment; in terms of experience: the project in Guantao County is on the ground. the company also has pilot projects in other parts of the country, which can be replicated quickly in different places. In addition, Guantao County, as a model of "Beautiful Countryside", has a good reference significance to establish a foundation for cooperation between the two sides outside sewage treatment.
The Internet of things actively layout, maintain the buy rating, continue to strongly recommend companies to take advantage of their own technological advantages, actively transform the Internet of things business, a number of strategic cooperation agreements steadily progress, there have been projects in the field of smart cities. Under the requirements of "high standards", "Smart City" will become the "standard" for the construction of Xiongan New area, and it is also one of the contents of this cooperation in Baoding. We look forward to Mayanson's accumulated strength in this field. The company is expected to achieve a net profit of 1500-20 million yuan in the first quarter of 2017, which has turned a loss into a profit.
It is expected to achieve net profit of-0.68,1.05,183 million yuan respectively from 2016 to 2018, equivalent to EPS-0.40, 0.63,1.09 yuan, maintain the buy rating and continue to strongly recommend!