Summary:

The company is a high-quality landscaping construction enterprise. The company's business income is mainly from the construction of landscaping projects. in the first half of 2016, landscaping construction accounted for 99.56% of the total revenue, while landscape design only accounted for 0.44%.

The use of raised funds is clear. The funds raised by the company are mainly used to invest in the construction project of garden seedling production base and to supplement the working capital of landscaping project construction.

The landscaping industry has a large market capacity in the future. It is estimated that in 2018, the estimated capacity of China's real estate landscape market is 230 billion yuan, the municipal public garden market capacity is 376.8 billion yuan, and the overall capacity of the landscaping market will reach 606.8 billion yuan.

The business growth of the company has been highlighted. From 2013 to the first half of 2016, the company's operating income was 284.7557 million yuan, 312.5735 million yuan, 353.6856 million yuan and 1807.71 million yuan respectively, with an average annual compound growth rate of 11.45% in the past three years, accounting for a low proportion of the national landscaping market, but in a steady growth trend.

Balanced development of municipal gardens and real estate gardens, with strong anti-risk and sustainable development ability.

The company is fully qualified and has a long-term cooperative relationship with real estate developers. It has two-wheel drive in municipal and real estate gardens to ensure financial stability and enhance anti-risk ability. In 2016, H1 company municipal public garden revenue accounted for 42.77% of the total revenue, real estate landscape garden revenue accounted for 57.23% of the total revenue.

Earnings forecasts and ratings. The average valuation of the garden industry in 2016 is 44 times, and we expect the company's earnings per share from 2016 to 2018 to be 0.58 yuan, 0.69 yuan and 0.84 yuan. Taking into account the size of the company, give the company 30-40 times valuation, a reasonable price should be 17.4-23.2 yuan.