This report is read as follows:
The company's EPC project is progressing smoothly, and the expansion of the agro-ecological industrial park is speeding up. Shanghai Yunneng has formed a good coordination with the company's main business. With the steady expansion of the agricultural industrial park, the company is transforming into an operator step by step.
Main points of investment:
Conclusion: the company issued a performance forecast, 18H1 expected to return home net profit of 1.25-138 million yuan, a year-on-year increase of 77.6% Murray 96.1%, in line with expectations. Based on the acceleration of the expansion of the company's agro-ecological industrial park project and the smooth progress of the EPC project, the completion of the acquisition of Shanghai Transport capacity formed a strategic coordination, maintaining an EPS of 0.44 billion 0.72 yuan in 2018-20, maintaining the target price of 19.38 yuan and increasing the holding rating.
The construction of the project is progressing smoothly, and the expansion of agro-ecological industrial parks has been accelerated. ① according to the company announcement, 18H1 biomass cogeneration, waste heat recovery and other power generation projects EPC projects are progressing smoothly, revenue increases promote rapid growth; ② currently has sufficient projects on hand, the payback situation is good, with the expansion of steam turbine capacity, steam turbine revenue is expected to maintain annual growth of more than 50% in 18-19. ③ Gaoyou Linyuan 10MW biomass power generation project is currently in good condition of production. When the by-product income is taken into account, the annual net profit can reach about 25 million yuan. ④ previously signed an agreement with CIC, which we believe can greatly reduce the financial pressure, help the promotion of the agricultural industrial park project into the substantive stage, and support the company's sustained and rapid growth.
Shanghai can join the formation of good coordination, step-by-step transformation to operators. ① has completed the equity transfer of Shanghai Yunneng on June 12. Shanghai Yunneng has promised to deduct the non-parent net profit of not less than 5100,7650,91,000,000 yuan in 2017-19. ② Shanghai Yunneng has operational qualifications such as efficient boiler production capacity and power plant design, and has good coordination with the company's business. as of December 17, the total amount of orders executed by Shanghai Yunneng is about 2 billion yuan, and the total amount of projects considered for negotiation is more than 3 billion yuan. ③ with the expansion of the agricultural industrial park project, the company will accelerate the transformation to an operator.
Catalyst: agricultural eco-industrial park project landed.
Risk factors: the execution of the project order is not as expected.