Conclusions and suggestions:

On the basis of tamping industrial water treatment, the scope of business has been greatly expanded through continuous mergers and acquisitions, and the effect is gradually revealed. First of all, in the main business of water treatment, it has entered the field of municipal water and water environment treatment. The company's acquisition beyond Kechuang has strong technology in black and smelly water treatment and ecological restoration, and the ability to take orders is expected in the future. Secondly, in the field of solid waste, hazardous waste is the key point of the company, which has substantially increased funding for Jilin and Heilongjiang projects to enhance its treatment capacity. at present, it occupies the core position of hazardous waste treatment in the three northeastern provinces, and positively responds to the call of Belt and Road Initiative in terms of waste incineration. It has signed five cooperation projects with Thailand and entered the field of waste acid and sludge treatment through the acquisition of Shanghai Hengjing and Taifeng Oil, respectively. Finally, with the help of the background of the petrochemical industry to enter the field of C5gam9 separation processing, the first phase of Huizhou project is about to be completed and put into operation, which will be an important profit growth point for the company in the future. After experiencing the throes of the economic downturn in the coal chemical industry, the company is actively looking for change. Through continuous mergers and acquisitions, the company is gradually getting rid of its dependence on a single business and is about to usher in a full flowering stage.

The company is expected to achieve net profits of 394 million yuan (YOY+50.19%), 608 million yuan (YOY+54.28%), EPS0.46 and 0.70 yuan in 17 and 18 years respectively. The current stock price corresponds to 17 and 18 years of dynamic PE 47X and 31x. The inflection point of the company's performance continues to be determined. With the operation of new chemical materials and hazardous waste projects, future performance will be accelerated release and give "buy" suggestions.

High certainty for the growth of hazardous waste business: as early as 2012, the company has made a small test in the field of hazardous waste, focusing on efforts since the beginning of this year, successively increasing funding for Jilin solid waste and Jinghua hazardous waste projects of 228 million yuan and 201 million yuan to expand its disposal capacity. After completion, Jinghua will become the largest hazardous waste project in Heilongjiang, with 42 types of disposal. The annual treatment scale of the first phase of the project is 83900 tons, and the estimated net profit is 7099 million yuan / year. After the completion of the expansion of Jilin solid waste project, the production capacity reaches 160000 / ton per year, and 1.4 million square meters of landfills are built at the same time, which can be collected and transported as far away as Jiangsu and Zhejiang, which is extremely scarce. The company has entered the field of waste acid disposal through an increase of 60 million in Shanghai Hengjing to 51% of its equity. At present, it is holding the Bazhou project, with a scale of 1000 tons per day and a plan of 3000 tons per day. The company expects that three years after the first phase is put into production, it can contribute 13.48 million yuan in profit every year. China's annual output of waste acid is more than 100 million tons, and the market is vast. With the help of Bazhou project experience, it is expected to expand other areas in the future. The company also plans to combine it with the Heilongjiang Jinsheng Huagu waste project in the future, in addition to combining with the upstream business-shale gas production, through the acquisition of 51% of the shares of Thai Oil, and the advance of the sludge and oil-based drilling cuttings treatment business.

In response to Belt and Road Initiative, signed a waste incineration project in Thailand: the company announced in October that it had signed five waste incineration power generation projects with Thai companies, with a total scale of 2250 tons per day, with a power generation scale of 44.6MW Wambanda holding 80%. There are three high waste disposal business in Thailand, and the electricity price is high: according to the local exchange rate, the electricity price is 1.12 yuan per kilowatt-hour, which is much higher than 0.65 yuan per kilowatt-hour in China; the treatment cost is high: the disposal fee in Thailand is 60-120 yuan per ton, which is higher than that in China; the calorific value is high: most of the garbage is deciduous branches. Thailand project can enjoy the preferential policy of exemption from import duties on all equipment and exemption from enterprise income tax for 8 years. At present, a project company is being set up and is expected to be put into operation by the end of the 19th. After completion, it is expected to contribute 120 million yuan / year in net profit. The successful signing of the project also marks the expansion of the company's overseas solid waste business, and the company will focus on developing this field in the future.

Industrial water treatment orders are stable, layout water environment treatment: the company's traditional industrial water treatment is concentrated in the coal chemical and petrochemical fields, although the industry prosperity has declined in recent years, on the whole, the order is still relatively stable. Since the beginning of this year, we have won the bid for Shenhua Ningdong project and Xinpu chemical condensate refined system procurement contract, and renewed the Qingyang petrochemical project. The company actively distributes the treatment of water environment, through the acquisition of 100% equity of Kechuang with 18.5 million yuan, it has the key technologies for the treatment of black smelly water and ecological restoration of water. At present, demonstration projects have been carried out in Shanghai, Hangzhou and other places with remarkable results. In order to complete the requirements for the basic elimination of black and smelly water bodies put forward by the Ten Water articles, the entire governance market space is over 100 billion, environmental supervision and inspection is becoming more and more stringent, the project demand is being released at an accelerated pace, the timing of the company's entry is right, and it is expected to achieve rapid development in the future.

Plus new materials business, an important support for future performance growth: Ecos is a new material company producing high-end resins, mainly used in rubber, road sign paint, adhesives and other fields. Wanbangda took a 22% stake in Icos with 88 million yuan in 15 years, and last year increased its capital by 272 million yuan for the second phase of the project, accounting for 45% of Icos after completion. The project adopts acetonitrile separation technology independently developed by Qingdao Icos Company, and the product yield has reached the international advanced level. The construction of the first phase of the Icos project was completed in November this year, with a raw material processing scale of 300000 tons, accounting for 17% of the national total, and is the largest C5 separation project in China. The second phase is expected to invest 1.2 billion yuan, which is currently under construction and will have the deep processing capacity of C5/C9 when completed. On the basis of meeting domestic demand, the products will also be used for export, and the sales volume is guaranteed. The new material business is an industry opportunity seized by the company on the basis of ploughing the petrochemical industry for many years. It is expected that the first phase of the project will be formally put into production in the first half of 18 years, with an income contribution of 2.3 billion, a net profit of more than 200 million, and an output value of 4.5 billion yuan after the completion of the first and second phase of the project. will become an important support for the company's performance growth.

The first three quarters reported net profit growth of 48%, excellent expense control: the company achieved revenue of 1.527 billion yuan in the first three quarters, YOY+27.11%, achieved a net profit of 296 million yuan, YOY+48.72%. The substantial increase in performance is mainly due to the completion of the construction of Huizhou C5/C9 project, the smooth progress of Wulanchabu PPP project and the improvement of capacity utilization of Jilin solid waste business. According to financial indicators, 17 in the first three quarters, due to the decrease in freight costs due to the reduction of Haotian energy-saving shipments, sales costs decreased by 31%, financial costs decreased by 137%, and management costs decreased by 39% due to a reduction in borrowing and an increase in repayment.

Optimistic about the development prospect, the company won CITIC Guoan brand: the company announced that CITIC Guoan Group, out of recognition and optimism to Wanbanda's development prospects and business model, from June 13 to November 20, 17, through centralized trading in the open market, the company's shares were increased to 5.00%, with an average holding price of 19.097 yuan per share, and said that it would not rule out the plan to continue to increase its holdings within 12 months. Citic Guoan Group is the main shareholder of CITIC Guoan Group, which currently holds four listed companies, namely CITIC Guoan, Sino-Portuguese shares, Silver Nonferrous and Guoan International, and are all controlling shareholders.

Profit forecast: the company is expected to achieve net profit of 394 million yuan (YOY+50.19%), 608 million yuan (YOY+54.28%), EPS0.46, 0.70 yuan in 17 and 18 years, respectively. The current stock price corresponds to 17, 18 years dynamic PE 47X, 31x, the company's performance inflection point is constantly determined, with the operation of new chemical materials and hazardous waste projects, future performance will be accelerated release, give "buy" advice.