Filter media experts have transformed into environmental protection integrated service providers in purification plants, and their performance has improved significantly: Sanwei is a supplier of high temperature filter media, which is the core component of bag precipitators. Since 2013, it has been transformed into an environmental protection integrated service provider for purification plants and smoke island treatment through the development strategy of both internal and external development. In the first three quarters of 2016, the company achieved 622 million yuan in operating income and 83.2818 million yuan in net profit, an increase of 14% and 64% respectively over the same period last year. The consolidated table in Xiamen has effectively improved the growth rate of the company's revenue and profit.

With the change of management and the fluctuation of control rights, the trading opportunities of the company's stock have been further strengthened: recently, great changes have taken place in the management of the company, and the actual controllers, Mr. and Mrs. Luo, have been removed from their posts as general manager of the company. Chou Guoqiang, the company's third largest shareholder, was elected Dong Ying of the third session of the board of directors with Zhang Yu. At the same time, Liao Zhengzong Dong Yun (Xiamen Po Ting Dong Ying) was elected as the company's deputy director, and Zhu limin (Luoka Environmental Protection Dong Ying, the former deputy general manager of the company) was elected as the company's general manager. The new entrant Dong Jianchou Guoqiang is one of the sponsors of the company, holding 8.62% of the company so far. According to the company announcement, Chou Guoqiang plans to increase its stake in the company by no more than 100 million yuan in the next six months. The actual control of the company produces greater uncertainty, and the "grabbing" behavior of major shareholders will strengthen the trading opportunity of the company's stock, which should be paid more attention to.

Solid fundamentals and sufficient driving force for performance growth: ① acquired Roca Environmental Protection and improved the back-end service chain of factory purification: in June 2015, Song Cheng acquired a 100% stake in Luoka Environmental Protection, which provides flue gas denitrification technology, key equipment, complete sets of equipment, and has independently mastered SCR denitrification technology, SNCR/SCR mixed denitrification technology, SNCR denitrification technology and other core technologies. Through the acquisition of Luoka Environmental Protection, the company successfully entered the field of flue gas denitrification and went further to the comprehensive service provider of flue gas treatment with the ability of dust removal, denitrification and desulfurization. ② acquires Xiamen Porting, cutting into the factory purification front-end service chain: in March 2016, the company acquired an 80% stake in Song Cheng Xiamen Porting, bringing it into the scope of full ownership. Xiamen Porting mainly focuses on the research and development, design and integration of bulk material transportation system. After Song Cheng's acquisition of Xiamen Porting, Sanwei can not only provide customers with comprehensive environmental protection services such as dust removal and denitrification for back-end flue gas control, but also provide customers with front-end bulk material transportation and storage system design, integration and maintenance services. the company's service chain has been greatly extended, and the comprehensive service capability of energy saving and environmental protection has been further enhanced. In addition, the two sides of the transaction can give full play to the synergy through the complementarity of customer resources. Among the above two acquisitions, Luoka Environmental Protection's non-net profit commitment for 2014-2016 is 26.5 million yuan, 33.13 million yuan and 41.41 million yuan, while Xiamen Porting's non-net profit commitment for 2015-2017 is 72 million yuan, 97.2 million yuan and 131.22 million yuan. The above performance promises are expected to significantly increase the company's profits.

Investment suggestion: 2017 is the target assessment year of "Qi Ten articles". Taking into account the improvement of the atmosphere governance industry, the high probability of Song Cheng's performance commitment in Xiamen, and the trading opportunities brought about by recent equity changes, we predict that the company's earnings per share from 2016 to 2018 will be 0.48 yuan, 0.62 yuan and 0.77 yuan, respectively. We give the company a-A rating, and the target price for six months is 24.23 yuan. It is equivalent to a dynamic price-to-earnings ratio of 39 times 2017.

Risk hint: competition aggravates risk, enterprise integration risk