In 19 years, the net profit was 84.56 million yuan, an increase of 142% over the same period last year, mainly due to the growth of Internet business and effective cost control. In 2019, the company achieved operating income of 378 million yuan, an increase of 12.85% over the same period last year, mainly due to an increase of 28.193 million yuan in energy conservation and environmental protection revenue and 16.0579 million yuan in Internet marketing revenue. In 2019, the comprehensive gross profit margin was 51.48%, an increase of 1.83% over the same period last year, mainly due to the increase in gross profit of the Internet marketing business; the net profit reached 84.5561 million yuan, an increase of 142.22% over the same period last year, mainly due to the profit growth of Wuhan Flying Tour and Changsha Jufeng Internet companies, as well as the decline in management expenses and asset impairment losses.

Energy conservation and environmental protection plate steadily improve, garbage stove protection market space is large. In 2019, the company's energy conservation and environmental protection business improved steadily, of which the garbage stove protection business achieved a business income of 55.5311 million yuan, an increase of 108.54% over 2018; the business income of sound insulation and noise reduction engineering business reached 41.3885 million yuan in 2019, an increase of 2.74% over 2018; wear and corrosion prevention business maintained a steady development, with an operating income of 73.6642 million yuan in 2019, a decrease of 2.40% compared to 2018. The national waste incineration power generation industry has a good momentum of development, and the waste incinerator is the core equipment of the waste incineration power plant. We judge that with the accelerated release of the market space of the waste incineration industry and the upgrading of existing waste incinerators caused by higher incineration standards, there will be a lot of market space for the anti-corrosion engineering demand of waste incinerators in the future.

Internet marketing business has maintained rapid growth, and the advantage of media resources is obvious. Through epitaxial expansion, the company has formed a dual-main business pattern of energy saving, environmental protection and Internet marketing. In 2019, the revenue of Internet marketing business was 174 million yuan, an increase of 10.19% over the same period last year, and the gross profit margin was 72.85%, an increase of 10.45 percentage points over the same period last year. Wuhan Feiyou and Changsha Jufeng have been engaged in the Internet industry for nearly a decade, and have gradually formed their own high-quality Internet media resources. Among them, Wuhan Feiyou's own Tengniu.com, Xixi Software Park and Changsha Jufeng's own PC6 download station and east-west mobile game assistant are all top websites and resources in the industry. After years of hard work in the industry, Wuhan Feiyou and Changsha Jufeng have accumulated a large number of high-quality customer resources, including Baidu, Inc., Sun Yue colleagues, Tencent and other companies.

Profit forecast. We estimate that the company's net profit from 2020 to 2022 will be 97 million yuan, 121 million yuan and 139 million yuan respectively, and the EPS will be 0.32 yuan, 0.39 yuan and 0.45 yuan respectively. We give the company 22-28PE in 2020, corresponding to a reasonable value range of 7.04-8.96 yuan, which is better than that of the big city.

Risk hint. Orders fall short of expectations; downstream demand slows down