Original insights:
Dongxu Lantian locates the integrated service provider of environmental protection and new energy, develops the integrated business of environmental protection and new energy in the same region, provides customers with intelligent energy services of ecological environment management and the integration of distribution and distribution of various clean energy, and provides a package of green development solutions to the local government: the company has remarkable advantages in the field of new energy, and actively lays out the industrial chain from photovoltaic industry to smart energy. Under the environment of the gradual standardization of the PPP industry, the company has obvious advantages in the PPP project on hand, and is expected to complete the goal of more than 30 billion newly signed ecological environmental protection orders by 2018; the company continues to purchase and expand, covering four major areas: comprehensive ecological management, water environment restoration and operation, soil and mine restoration, and hazardous waste solid waste treatment, and strive to create a complete environmental protection industry chain.
Main points of investment
1. Divest the traditional business and create an integrated service provider of "environmental protection + new energy". In recent years, the company has gradually stripped off the original real estate stock, created "environmental protection + new energy" integrated service providers through strategic adjustment, and developed integrated environmental protection and new energy services in one region, including eco-environmental management. and a variety of clean energy distribution and distribution integrated smart energy operation business to provide a package of solutions to the local government.
two。 Photovoltaic power generation promotes performance development and actively distributes the field of new energy. Dongxu Blue Sky has a complete photovoltaic system. At present, the reserve of the project exceeds 5GW, and the grid-connected power station exceeds 1GW. In addition to photovoltaic power generation, the company actively develops wind power and natural gas power generation and future smart energy business.
3.PPP logically straightened out, ecological and environmental protection PPP project can be expected in the future. With the regulation of the PPP industry by the Ministry of Finance, the competition pattern of environmental protection listed companies in the field of PPP has been significantly improved. In recent years, the company has constantly adjusted its strategic layout, combining the environmental protection business with the PPP model, and is expected to complete more than 30 billion of the newly signed eco-environmental protection orders by 2018.
4. Layout of environmental protection platform for a number of businesses, to create a complete industrial chain. Dongxu Blue Sky Environmental Protection Industry aims at "Wisdom + Ecology + Environmental Protection". Its business scope covers four areas: comprehensive ecological management, water environment restoration and operation, soil and mine restoration, and hazardous waste solid waste treatment, and is committed to building a complete environmental protection industry chain.
An increase of 54.85 million has been approved, and the development of green industry has injected strong impetus. Dongxu Lantian's application for non-public offering of shares was examined and approved by the China Securities Regulatory Commission on April 9. This increase will further expand the scale of the company's new energy power plant business and inject a boost into the company's environmental protection and new energy integrated service business. In addition, the rapid layout of new energy power plants and the company's expansion of the ecological and environmental protection industry to form complementary advantages, and further enhance the comprehensive competitiveness.
6. Investment suggestion: based on the company's rapid development in the field of new energy and the performance support provided by environmental protection PPP orders, we expect the company to achieve a net profit of 5.59,10.71,2.032 billion yuan in 2017, 2018 and 2019, equivalent to EPS0.42, 0.80,1.52 yuan, respectively. Given the target range of 16-17 yuan per share, the target price corresponds to 20-21 times the 18-year valuation, considering that the certainty of the company's performance will be further improved after the fixed increase is completed, and the expected valuation will be the same as the industry average, covering for the first time and giving a "strong push" rating.
7. Risk hint: the progress of the company's new investment project is not as expected; the new business development is not as expected.
