Event

The company issued an announcement of pre-increase in performance in 2019

In the first quarter of 19, the company is expected to achieve a net profit of 20 million yuan to 30 million yuan, an increase of 180.95% to 321.43% over the same period last year, exceeding the original forecast of 11 million yuan to 14.5 million yuan (an increase of 54.52% 103.69% over the same period last year).

Brief comment

The performance exceeded expectations, and the return of money increased the profits of the company.

The company's 18-year performance KuaiBao disclosed that the annual operating income was 329 million yuan, an increase of 26.85% over the same period last year, and the net profit attributed to the parent company was 41.8 million yuan, an increase of 183.48% over the same period last year. In 19 years, Q1 company expects to achieve a net profit of 20 million yuan to 30 million yuan, an increase of 180.95% and 321.43% over the same period last year. (the originally disclosed net profit was 11 million yuan to 14.5 million, an increase of 54.52% and 103.69% over the same period last year. ), the performance growth exceeded expectations. In addition, the company began to increase the recovery of accounts receivable in the past 18 years, and the provision for bad debts under the original accounting policy decreased compared with the same period last year, thickening the company's profits.

The strategic layout of the dual-main business helps the company to stabilize and improve.

In 2017, the company's newly acquired subsidiaries, Wuhan Feiyou and Changsha Jufeng, continued to develop their Internet marketing business and exceeded their performance commitments for two consecutive years, providing the company with stable operating income. Since 18 years, the capacity digestion of the upstream industry has come to an end, the investment demand for equipment has recovered, and the company's traditional anti-wear and anti-corrosion business has stabilized and rebounded. As the only listed company in the field of anti-wear and anti-corrosion and the maker of industry benchmarking, the company is expected to enjoy the leading advantage when the industry recovers in the future. In addition, the company has taken the lead in laying out the acoustic environmental protection industry chain since 2006, and the self-developed garbage furnace protective cold welding technology is leading in China. With the improvement of incinerator parameters in recent years, the demand for protection is increasing. After 18 years, the company's acoustic noise reduction and waste incinerator protection business are expected to achieve rapid order and performance growth in 19 years. The business pattern of double main business plate goes hand in hand to reduce the operating risk of the company's environmental protection and energy saving plate, and abundant operating funds promote the company's performance to advance steadily and improve continuously.

Internal growth is strong, and orders on hand are increasing rapidly.

The company's new environmental protection business includes two areas: acoustic noise reduction and garbage furnace protection, and a large number of previous R & D investment has achieved remarkable results since last year. The number of new orders increased explosively in 2018, and the cumulative winning bid amount from January to November has exceeded 70 million yuan. In addition, the company has started technology research and development in the field of garbage furnace corrosion resistance since 2009, and now it has become one of the few domestic enterprises that master the core technology and have the ability to carry out large-scale construction, with a strong first-mover advantage. this technology can effectively improve the service life of incineration equipment, and high-quality engineering construction ensures that the amount of orders on hand continues to increase. It has obtained more than 15 million yuan in orders in 2017 and more than 30 million yuan in new orders from January to September 2018, and has provided anti-wear and anti-corrosion services for many large enterprises for a long time, and established a good customer relationship. At present, the anti-corrosion area of the company's machinable waste incinerator is about 26,000-30,000 square meters / year. In the later stage, according to the advance of the order, it is proposed to expand production to 45,000-50000 square meters / year.

Accelerate the release of policy dividend and be optimistic about the long-term development of the company

Since the 13th five-year Plan, the general requirements for the construction of ecological civilization have been continuously implemented, and the dividend of environmental protection policy has been released at an accelerated pace. On the one hand, waste incineration gradually occupies the mainstream of the industry, and the market capacity of garbage furnace protection is increasing rapidly, and the market capacity is expected to reach 7.8 billion in 2020. On the other hand, with the increasingly serious noise pollution, the intensive introduction of policies has continuously established a standard system for the prevention and control of noise pollution, and clearly stipulated the tax on the problem of excessive industrial noise, forcing enterprises to strengthen the control of noise pollution on their own. there is a broad market for noise pollution control in the future. We expect that with the support of the existing technology and experience, the downstream customer relationship of the company will be stable, the orders will increase significantly, and the market share will be increased rapidly in many business areas in the future, and there will be a lot of room for environmental protection business increment. In addition, the Internet subsidiary has fulfilled its performance commitments well, has established long-term and deep cooperative relations with upstream Internet giants such as Baidu, Inc., BABA, Tencent, Sun and Moon peers, and gathered rich and high-quality media resources. the advantage pattern of strong and strong combination is expected to further consolidate and enhance the company's industry position. Be optimistic about the long-term development of the company and maintain the previous profit forecast. It is estimated that the company will achieve revenue of 3.29,6.05 and 835 million yuan from 2018 to 2020, net profit of 0.42,1.17,164 million yuan and 0.14,0.38,0.53 yuan for EPS.