Main points of the report
Event description
On December 31, 2016, Tianjin Film Science and Technology received the bid winning notice of Tumushuke Construction Project of the third Division issued by Xinjiang production and Construction Corps tendering Co., Ltd., which confirmed that the company was the winning bidder of Xinjiang Hongda Huaneng Water Science and Technology Development Co., Ltd., the PPP project (mechanical and electrical equipment and services) of Tumushuke Textile Industrial Park, with a winning bid amount of about 149 million yuan.
Event comment
Winning a large project order, the short construction period will significantly thicken the company's performance. The sewage treatment plant of Tumushuke Yonganba Textile Industrial Park has a total investment of 250 million yuan, covers an area of 71.8mu, and is built in two phases. 30,000 tons of sewage is treated daily after completion, and the domestic and international first-class mature MBR membrane process is adopted. The treated water quality reaches the national class A standard. 90% of the reclaimed water is used for landscaping and enterprise process reuse, which belongs to the demonstration project of green mountain and green water ecological environmental protection, energy saving and emission reduction. The amount of winning the bid accounts for 24.64% of the operating income in 2015, and the winning period is within 10 months from the date of signing the contract. If the formal contract is successfully signed and implemented in the later stage, the shorter construction period will have a positive impact on the operating performance in 2017.
The government attaches great importance to it, and the demonstration effect outside the province is prominent. The PPP project of Tumushuke Textile Industry Park was highly valued by the local government. Members of the municipal people's Congress, the government, the CPPCC leading group and responsible persons of relevant departments all attended the project mobilization meeting. As a part of the cooperative infrastructure project of the textile industry park, the sewage treatment plant PPP project will help the company to continue to expand its market share with the support of the government.
Based on membrane technology, with the help of PPP, "technology + engineering two-wheel drive" is realized. In the past, the company took membrane products as the core driver, and the integration of investment and operation under the promotion of PPP mode became a trend. The company followed the major trend and began to promote "product + engineering" two-wheel drive. The future is worth looking forward to.
Profit forecast and investment advice: considering the fixed increase of dilution (consolidation and dilution in 2017), we estimate that the EPS of the company in 2016 will be 0.18,0.62,0.81 yuan respectively, and the corresponding PE will be 100X, 29X and 22X respectively, maintaining the "buy" rating!
Risk Tip: the project has not yet signed a formal contract, the company has other external factors leading to the risk of delaying the progress of the project!
