Main points of the report
Event description
The company released the 2015 annual report, achieving revenue of 761 million yuan, an increase of 4.53% over the same period last year. The net profit belonging to the parent company was 45.3558 million yuan, an increase of 7.60% over the same period last year, and basic earnings per share was 0.23 yuan per share.
Event comment
Technology upgrading + projects accelerated, and the sewage treatment business supported the steady growth of the company's performance. The company achieved revenue of 761 million this year, an increase of 4.53% over the same period last year, and a performance of 45.3558 million yuan, an increase of 7.60% over the same period last year. In terms of business, the revenue of raw water supply was 460 million, down 10.7% from the same period last year; the revenue of tap water supply was 180 million, an increase of 3.04% over the same period last year; the revenue of sewage treatment was 22.3 million, an increase of 7.6% over the same period last year; and the revenue of engineering construction was 69 million, an increase of 342% over the same period last year. It can be seen that the continuous efforts of the sewage treatment business to support the steady growth of the company's performance is mainly manifested in two aspects: (1) strengthening the technological upgrading of the three existing sewage treatment plants, significantly reducing the operating cost; (2) speeding up the construction of the sewage treatment plant in Liuzhou County and Chengguan Town, Wuqing District.
The acquisition of Jiacheng Environmental Protection + many projects under construction, the prospect of sewage treatment is good. In April 15, 789 million acquired 55% stake in Ka Cheng Environmental Protection, and the company took advantage of the capital market to enter the water treatment industry. In the future, the company will rely on the background of Beijing-Tianjin-Hebei environmental protection integration, with the compound identity of "state-owned assets + private enterprises", to create a two-wheel drive model of "technology (Ka Cheng Environmental Protection) + capital (company)", coupled with the future multi-point layout of sewage treatment plant projects. we expect the company's sewage treatment business to break out.
"Industry + capital" two-wheel drive, to create a "big environmental protection" platform, extension can be expected. (1) setting up an environmental protection industry fund to provide financial guarantee for the company's M & A transformation; (2) business diversification under extension expansion: the company has a strong driving force for transformation, from the acquisition of Jiacheng Environmental Protection, the establishment of the Southern Science and Technology University Joint Research Institute to the layout of the intelligent pension industry, it fully reflects the company's determination and courage to build a platform holding company.
Profit forecast and investment advice: we expect the company's EPS to be 0.44,0.74,0.87 respectively from 2016 to 2018, maintaining a "buy" rating.
Risk hints: 1) systemic risk; 2) the expansion progress of the smart pension project is lower than expected
