A leading integrated service provider for environmental monitoring with obvious technical and brand advantages
The company is a leading manufacturer of environmental monitoring instruments in China, mainly engaged in environmental monitoring system research and development, production, sales and operation services, products including water quality monitoring, air monitoring, environmental monitoring information management systems and operational services, etc., widely used in environmental protection, municipal, water conservancy and pollution source enterprises. The company has obvious advantages in technology and brand: it has research platforms such as "National Engineering Laboratory of Advanced Technology and equipment for Water Environmental pollution Monitoring" and "Hunan Environmental automatic Monitoring instrument and equipment Engineering Technology Research Center". Presided over or participated in more than 20 scientific research projects such as national major scientific instruments and equipment development project, 863 plan, water special project, science and technology support plan and so on. The independent R & D and production of environmental monitoring instruments can automatically monitor more than 100 environmental monitoring factors, which is in a leading position in the industry.
Create water quality emergency monitoring system with rich experience, participate in hospital sewage emergency monitoring of epidemic situation and show social responsibility
The company pioneered the mobile water quality automatic monitoring system, which is rated as a national key new product, which can be used in emergency monitoring and supervisory monitoring after pollution accidents. it can find out the type of pollutants, the degree of pollution and report the monitoring data, geographical location and pollution diffusion trend in time after the pollution accident, so as to facilitate timely decision-making. In recent years, the company assists government departments to participate in the emergency monitoring of more than 20 major environmental events (including water quality safety monitoring after Wenchuan earthquake, cadmium pollution incident in Longjiang, Guangxi, "3.21" explosion accident in Xiangshui, Jiangsu, etc.). It has been fully affirmed by the Ministry of Ecology and Environment and the local environmental protection departments.
After the outbreak of novel coronavirus in Wuhan, on January 30, the company monitored the sewage and surrounding water quality of 9 COVID-19 designated hospitals, including Mount Vulcan, Leishenshan and Jinyintan. On February 4, the company also transported more than 20 sets of water quality online monitoring instruments for three "square cabin hospitals" in Hongshan Gymnasium, Wuhan living room and Wuhan International Convention and Exhibition Center.
Monitor waste water, monitor residual chlorine, biological toxicity, fecal Escherichia coli group and other indicators, ensure 24-hour continuous monitoring of hospital wastewater, timely early warning of wastewater pollution, reduce secondary disasters caused by the epidemic, and ensure the safety of frontline personnel. Actively participate in dealing with the epidemic, showing the company's high sense of social responsibility.
There are sufficient orders on hand, and the steady growth of performance is guaranteed.
From 2016 to 2018, the company's revenue increased from 268 million yuan to 613 million yuan (with an average annual compound growth rate of 51.27%), and the net profit attributable to non-deduction increased from 45.85 million yuan to 176 million yuan (with an average annual compound growth rate of 96.03%). It is estimated that the revenue in 2019 will be between 7.1 yuan and 760 million yuan (+ 15.75% color 23.90%), and the net profit after deduction will be 2.1 yuan to 230 million yuan (+ 19.18% color 30.53%). The performance has achieved steady growth. From 2016 to 2018, the company's final orders-on-hand are 3.43,4.77 and 996 million yuan respectively, and the order amount continues to reach a new high. by the first half of 2019, the company has made 1.05 billion yuan in-hand orders, which has laid the foundation for steady growth.
In recent years, with the promotion of the vertical reform of environmental monitoring, the collection of monitoring authority, and the normalization of environmental protection inspectors, the monitoring industry in China has made some progress. The "eco-environmental monitoring network construction plan" proposes that by 2020, the national eco-environmental monitoring network will basically achieve full coverage of environmental quality, key pollution sources and ecological monitoring, and the interconnection and sharing of all kinds of monitoring data systems at all levels. we will initially build an ecological environment network of "integration of heaven and earth". At the same time, according to the content of the third High-end Forum on Environmental Monitoring and Services in 2019, from the government level, until the middle of this century, the task of environmental quality monitoring will still be very heavy, and the world-class ecological environment monitoring system will eventually be built in the future. During the 14th five-year Plan period, environmental monitoring will deepen the deployment of sites and monitoring indicators in the atmosphere, water quality and soil, as well as marine ecological environment monitoring, groundwater environment monitoring, greenhouse gas monitoring and ecological condition monitoring. The environmental monitoring industry still has great opportunities for development, and the company is expected to fully benefit.
Listed to improve production capacity, research and development, capital and other strength, to help the company's new development company listed in November 2019 to raise a net capital of 928 million yuan. Funds are invested in environmental monitoring system production expansion, operation and service system construction, R & D center construction, Yangtze River Basin than Bohai Bay water quality inspection, supplementary working capital and other projects, these projects are carried out around the company's existing main business. They are the measures to increase the company's production capacity, expand the operation service network, enhance the R & D strength, reserve the future competitiveness, and supplement the working capital. The funds in place can improve the company's financial situation, enhance the company's popularity and market competitiveness, and help the company enter a new stage of development.
Profit forecast and investment rating: coverage for the first time, giving the company an "overweight" rating. We are optimistic about the development prospect of the environmental monitoring industry and the position of the company in the industry. It is estimated that the company's 2019-2021 EPS will be 2.73,3.27,3.93 yuan respectively, and the corresponding share price PE will be 27,22,18 times, giving the company an "overweight" rating for the first time.
Risk hints: lower-than-expected risk of environmental monitoring policy and implementation, lower-than-expected risk of company order acquisition and execution, lower-than-expected risk of fund-raising projects, significant increase risk of accounts receivable, interest rate upward risk, macroeconomic downside risk.