Revenue growth accelerated in the third quarter: the company's total operating income in the first three quarters was 1.599 billion yuan, an increase of 48.63% over the same period last year, and its net profit was 143 million yuan, an increase of 42.58% over the same period last year. The total operating income in the third quarter was 547 million yuan, an increase of 24.07% over the same period last year, and the net profit returned to the home was 34 million yuan, an increase of 12.62% over the same period last year.
The acceleration of revenue growth in the third quarter was mainly due to the smooth progress of projects such as Xinjiang Crystal and Source High Purity Silicon and waste heat power generation, resulting in an increase in revenue and the merger of Shanghai transport capacity under non-identical control.
Broaden the financing channels to help the business development of the Agricultural Environmental Protection Industrial Park: the company signed the "Bank-Enterprise Cooperation intention Agreement" with a syndicate of four financial institutions on October 23, 2018. The syndicate provides the company with intentional financing services with a cooperation limit of no more than 2 billion yuan for the company's agricultural environmental protection industrial park business.
The company is actively promoting the agricultural environmental protection industrial park project, mainly from power generation and by-product slow fertilization, the entire project payback period of about 6 years. The signing of this agreement meets the needs of the company's future development strategy, helps to broaden the company's financing channels, improve financing efficiency, provides financial support for the company's agricultural environmental protection industrial park business, and will further promote the company's sustainable development.
Introduce industrial strategic investment to promote future business development: the company announced on November 28, 2018 that Mr. Ji Wei and Mr. Ji Weidong, the company's controlling shareholder and actual controller, signed a "framework agreement" with Shaanxi Capital Fund Management Co., Ltd. And Zhongshan Nuclear Industry Group Co., Ltd. after the completion of the transaction, the actual controller of the company will be changed to the State-owned assets Supervision and Administration Commission of the Shaanxi Provincial people's Government. The introduction of industrial strategic investors and controlling shareholders can optimize the company's capital structure, improve the company's financial situation and profitability, and be conducive to the long-term development of the company in the future.
Shaanxi Gold Fund Management Co., Ltd. is a wholly-owned subsidiary of Shaanxi Financial Asset Management Co., Ltd., a subsidiary of Shaanxi SASAC, with a shareholding ratio of 100%. Zhongshan Nuclear Industry Group is a wholly-owned subsidiary of Shaanxi State-owned assets Supervision and Administration Commission with a shareholding ratio of 100%. According to the content of the cooperation, Shaanxi Gold Fund Management Co., Ltd. and China-Shaanxi Nuclear Industry Group Co., Ltd. will become the actual controllers of the company and directly and indirectly hold 25% of the company's 29.99% shares. This cooperation will enable the company to make use of the government resources and industrial advantages of Shaanxi SASAC in Shaanxi Province, strengthen extensive and in-depth cooperation with relevant enterprises in Shaanxi Province, layout strategic industries, expand the industrial chain, and increase the combination of industry and finance. promote the development of the company's new technology industrialization and promote the landing of the company's new projects.
Profit forecast and investment rating: the company's quarterly report results are in line with expectations, the smooth progress of hand-to-hand projects, the widening of financing channels and the introduction of industrial strategic investors will provide good financial and industrial resources support for the company's follow-up development. We estimate that the company's net profit from 2018 to 2020 will be 2.33,3.73 and 549 million yuan respectively, corresponding to 0.20,0.32,0.47 yuan for EPS and 18,12 and 8 times for PE respectively, maintaining the buy rating.
Risk hint: industry competition intensifies, and the implementation and results of the framework agreement for the introduction of strategic investment are not clear.
