Main points of investment

1. The company's PPP is progressing smoothly and is expected to make continuous breakthroughs in business transformation.

The final quotation value of the project is 2.7 billion, of which 1.3 billion is the construction cost and the rest is the operation and maintenance cost. The continuous landing of PPP orders marks the success of the company's transformation, operation and maintenance service outsourcing business trillions of blue ocean market, the company as a segment leader will be the first to benefit. The company's 16-year cumulative announcement won the bid for the underground integrated pipe gallery PPP project of about 12.5 billion, which is expected to be completed within 2-3 years, and 17-18 years will be the performance concentrated release period.

two。 The company is the small leader of civil participation in the army, and will fully benefit from the promotion of civil-military integration.

3D printing and logistics equipment escort company has become a high-quality target for the people to join the army. The company has the qualification of a first-class military supplier and has obtained the third-level confidentiality qualification this year, which has further strengthened the status of civil participation in the army and will benefit from the acceleration of civil-military integration.

3. Profit forecast

The company is expected to achieve a net profit of 240 million and 330 million from 2017 to 2018, corresponding to a PE of 21X and 15x, with high growth and low valuation, which is strongly recommended.

4. Risk hint

The development of PPP is not up to expectations, and the progress of military business is not as expected.