Event: the company released its first-quarter report, in line with expectations

Today, the company released its first-quarter report: realized operating income was 576.75 million yuan, an increase of 26.96% over the same period last year; net profit attributable to shareholders of listed companies was 15.25 million yuan, up 155.89% over the same period last year; net profit attributable to shareholders of listed companies was 13.36 million yuan, an increase of 149.48% over the same period last year; and basic earnings per share EPS was 0.07 yuan per share, in line with our expectations.

Profit forecast and investment advice

We maintain our previous profit forecast that from 2014 to 2015, the net profit attributed to the parent company will be 83 million yuan and 136 million yuan respectively, and the EPS will be 0.411 yuan and 0.668 yuan respectively, with a year-on-year growth rate of 112.71% and 62.58% respectively.

At present, the corresponding valuation of the company's stock price is 48 × 14PE and 30 × 15PE, although the valuation is on the high side, but we think that the company belongs to the transitional period, the net interest rate is flexible, and it is in the early stage of the improvement trend. at this stage, if the valuation is judged only by the performance corresponding to the current lower net interest rate level, the potential elastic value of the enterprise will be underestimated. And considering that if the non-public offering of Juhua is successful, the major shareholder cost is 19 yuan, and the current price has established a sufficient margin of safety.

At the current price, we give the company investment advice, the risk-reward ratio is still very high, the main logical point is that the current price has the safety margin laid by the cost of major shareholders, the three major investment opportunities in the future are: 1, shareholder hierarchy adjustment and the expected profitability improvement brought by the reform of state-owned enterprises; 2, haze forced dust removal standards are stricter, the market will change from order-driven to technology-driven, the company has significant advantages. 3. After Juhua successfully settled in, it will create a large environmental protection platform for atmosphere, sewage and solid waste.