Open up a new growth point in the field of light and heat
The company won the bid for a large commercial photothermal power plant in China, Guangzhou Nuclear Delingha 50MW photothermal project heat transfer storage system EPC, laying the foundation for its subsequent entry into the first batch of 1GW photothermal demonstration projects; it is expected that the photothermal installation scale during the 13th five-year Plan period will be 10GW, bringing a heat transfer and heat storage market of about 60 billion yuan. The company has the advantage of first-mover project experience and opens up new growth points.
Distribution of ship exhaust gas treatment to expand trillions of new markets
Recently, China has gradually formed a supporting policy, set up a ship emission control program, and took the lead in implementing emission reduction in the Yangtze River Delta region on April 1, 2016. The company invests holding Puyi Environmental Protection (7.14%) to enter this field and gradually form a technology and cost advantage. With the opening of the trillion-level market brought about by the treatment of ship exhaust gas, this field will gradually bring benefits to the company and expand new growth space.
The chemical catalyst business has grown steadily, and the company has entered the petrochemical e-commerce field with strong technical and market advantages in the field of sulfur-tolerant shift catalysts and its related products and devices, and has actively expanded its business in this field this year. It is expected that the business will maintain steady growth in the next few years with the transformation and some new line demand. The company shares 39% of the shares to set up a joint venture with Shanghai Zhishang and a wholly-owned subsidiary PetroChina 3D, enter into online financing, commission and other businesses, open up the supply chain and extend the industrial chain to O2O petroleum products sales, trade brokerage and other fields. We conservatively estimate that the commission income of Shanghai volunteer merchants alone is expected to reach 180 million yuan this year, opening up a new world for petrochemical e-commerce.
Traditional engineering design and EPC business hit bottom and rebounded
The company's traditional engineering design and EPC business is sound. With the elimination of adverse effects such as 15 years of industry economy and project promotion and settlement timing, this kind of business is expected to bottom out and return to a normal and stable state this year. It is conservatively expected to achieve a revenue of 600 million to 700 million yuan this year, with a net profit of about 115 million yuan.
The company is based on sulfur recovery and has new bright spots, giving "increased" rating companies to cut into light and heat, ship exhaust control and other new areas to expand new development space, open up the petrochemical e-commerce industry chain and open up a new world, traditional petrochemical catalysts and engineering design, EPC business remain sound. We estimate that the company's EPS for 2016-2018 is 0.32 Universe 0.37 Universe 0.41 yuan, corresponding to the 2016-2018 PE for 29.9 Universe 25.9 ingredient 23.3, and we give it an "overweight" rating.
Risk hints: there are risks that policy promotion falls short of expectations and market expansion risks.