Event
The company issues a semi-annual performance notice.
Bohai shares issued a semi-annual performance forecast for 2017, which is expected to achieve a net profit of 28.6 million yuan to 35 million yuan belonging to shareholders of listed companies, an increase of 121.70% and 171.31% over the same period last year. Mainly because the company completed the acquisition of 55% stake in Ka-shing Environmental Protection in January this year, Ka-Cheng Environmental Protection was included in the consolidated statement, contributing to the main growth of half-year performance.
Brief comment
Completed the merger and acquisition of Jiacheng Environmental Protection, greatly increased the profit scale.
Jiacheng Environmental Protection is a leading environmental protection enterprise in Hebei Province, which has great competitive strength in the field of sewage treatment. It makes a strong supplement to the business structure of Bohai shares based on water supply services, and forms a "operation + technology + engineering" system in the industrial layout. the advantages of strong and strong forces complement each other. According to the company's previous announcement, Ka Cheng Environmental Protection achieved deduction of non-net profit of 1.02 yuan and 145 million yuan respectively in 2015 and 2016, the net interest rate was stable at more than 20%, and the performance commitment completion rate was 101.04% and 101.68% respectively. We believe that we will not worry about completing the performance commitment of 178 million yuan this year. According to the first-quarter report data of Bohai shares, we estimate that the company's net profit in the second quarter of 2017 ranges from 21.19 million yuan to 27.59 million yuan, an increase of 205.88% and 298.25% over the same period last year, which is significantly higher than the 24.02% growth rate in the first quarter. It fully reflects the role of Ka-shing Environmental Protection in expanding the company's profit scale.
Take advantage of the location of Beijing, Tianjin and Hebei to go deep into the water treatment and PPP market
Jiacheng Environmental Protection currently has 8 franchise projects, mainly distributed in the Beijing-Tianjin-Hebei region, of which the Santai Town sewage treatment Plant Project in Anxin County is located in Xiongan New District. In the future, the new round of Beijing-Tianjin-Hebei coordinated development with Xiongan New area as the core, and the development orientation of "green, intelligent, high-end and high-tech" in Xiongan New area will bring extensive benefits to the company's business. In addition, in addition to the traditional construction and operation projects, the company also deeply develops the water treatment market through PPP. Since 2016, the subsidiary Coastal Water Industry has jointly won the bid for sewage treatment in Shahe City and Lulong County and other municipal projects in Shahe City and Lulong County since 2016. In March this year, Jiacheng Environmental Protection won the bid for the Wangkai Town sewage treatment Plant Project in Xingtai Economic Development Zone, achieving a major breakthrough in the field of PPP. The project started smoothly and contributed to the increment of performance.
Be optimistic about the long-term positioning of the industrial investment group and maintain the buying rating
The company has unique geographical advantages. After the merger and acquisition of Jiacheng Environmental Protection, the water treatment business will be greatly expanded, and the upsurge of PPP projects will bring rapid growth opportunities. At the same time, the company benefits from the coordinated development of Beijing-Tianjin-Hebei region and has huge room for imagination in the future. In addition, the company has set up an environmental protection industry fund and increased capital in Futian River to get involved in the field of providing for the aged. In the long run, we are optimistic that it will develop into an industrial investment holding group integrating water, ecology, health and other industries. The company is expected to achieve net profit of 1.59 yuan and 208 million yuan respectively in 2017 and 2018, corresponding to 0.63 yuan and 0.82 yuan per share of EPS, maintaining the buy rating.
