Events: (1) on August 7, 2018, the company signed a Strategic Cooperation Agreement with China Science and Technology Industrial Group (Holdings) Co., Ltd. to carry out long-term cooperation in the fields of distributed biomass and waste gasification coupling energy supply project landing, agro-ecological park construction and high-end equipment manufacturing. (2) on August 1, 2018, Gaoyou Linyuan Science and Technology Development Co., Ltd. signed the "Technical Cooperation Agreement on the industrialization of hydrogen extraction from Biomass Gasification" with East China University of Technology and Changzhou Lanbo purification Technology Co., Ltd. it is proposed to build the first set of straw gasification hydrogen extraction of 20 million cubic meters in China, supporting high concentration hydrogen extraction process and liquid process.
Join hands with the Chinese Academy of Sciences to continuously promote renewable energy power generation: China Science and Technology Industrial Group (Holdings) Co., Ltd. is a large-scale high-tech industrial investment and management company under the Chinese Academy of Sciences. It entered the environmental protection industry in 2001, focusing on the construction of domestic waste incineration power generation projects. Linyuan Technology, a subsidiary of the company, is committed to independent research and development of clean utilization of biomass resources and industrial equipment manufacturing. In 2017, the company completed the technical transformation and expansion of Linyuan science and technology power generation system with high-efficiency steam turbine equipment. At present, Linyuan Technology is in the domestic leading level in the field of comprehensive development and utilization of biomass energy.
The cooperation of distributed biomass and waste gasification coupling energy supply project will integrate the high-quality technical resources of the Chinese Academy of Sciences and the project experience of waste power generation investment, construction and operation of China Science and Technology Industrial Group. Lin Yuan's leading position in the field of biomass power generation and the company's own manufacturing advantages of high-end equipment are highly complementary in the energy field. At the same time, as a supplier of high-end fluid machinery and equipment, this cooperation is also conducive to the promotion and sales of the company's products. In addition, the five-year long-term strategic cooperation agreement will also be extended to industry-university-research cooperation through project investment cooperation, which is not only conducive to the company's plan to use biomass gasification power generation technology to build 30 agro-ecological park demonstration sites nationwide, but also conducive to the company to carry out the development, application and promotion of the latest technology of distributed energy projects.
Jointly develop hydrogen energy to extend the company's industrial chain: Linyuan Science and Technology, a subsidiary of the company, has built the 16000m3/h production capacity of biomass straw gas production (straw contains 20-30% hydrogen), while supporting a diversified biomass gas purification system, 10MW power generation system, gas is also used in industrial gas boiler heating projects. East China Science and Technology and Rambo purification will provide technical support for the purification process and help the company develop hydrogen extraction technology from biomass gasification, so as to achieve low-cost, large-scale hydrogen production, and at the same time promote the R & D and manufacture of related high-end equipment, effectively enhance the added value of existing biomass gasification products, and add new profit growth points for the company's future development.
Profit forecast and investment rating: we believe that the company as the domestic fluid machinery manufacturing leader, master high-end core technology, while the agricultural environmental protection industrial park innovation model has achieved certain results. This time, the company seeks technical cooperation with Lin Yuan Science and Technology as the core, and its business extends to the new energy industry chain, which is expected to further promote the development of the company's high-end equipment. We estimate that the return net profit of the company from 2018 to 2020 is 2.33,3.73 and 549 million yuan respectively, the corresponding EPS is 0.38,0.61,0.89 yuan respectively, and the PE is 26,17,11 times respectively.
Risk hint: the promotion of clean energy power generation is not as expected, the landing of orders is not as expected, industry competition is intensified, strategic cooperation and technical cooperation is not as expected.
