Main points of investment
1. The foundation of civilian participation in the army has been further consolidated, and Senyuan, which will fully benefit from the integration of the army and the people, has become a first-class supplier of new highway maintenance machinery. The company's large-scale thermal recycling units, road surface snow removal and cleaning equipment and other products are included in the military procurement, can join the army-wide supply system, is the high-quality target of the army. This time, the third-level secrecy qualification has further strengthened the foundation for civilian participation in the army, and will fully benefit from the acceleration of civil-military integration.
The company began to lay out the 3D printing industry chain in the past 14 years, and plans to use sand laser 3D printing technology to participate in the rapid manufacturing of warship propellers and other components. The company's 3D printing key naval projects have great potential and are expected to become the next Wang Huaming team (J-20 matching). The high-precision 3D printing project is progressing steadily at present, and it is expected that the industrial application will be realized in the near future.
2. PPP orders have been continuously obtained since the second half of 2016. The successful transformation service company is the leading enterprise of domestic road maintenance equipment. Since 13 years of transformation, from equipment manufacturing to maintenance layout, 19 joint ventures have been established nationwide, and high-quality companies are expected to be controlled in the future.
Signed a strategic cooperation framework agreement with enlightening Sander, the joint venture model entered the 2.0 era, the scope of business expanded from a single road maintenance to the entire municipal service outsourcing, sharing the municipal service outsourcing market.
Consecutive winning bids for Jilin Gallery PPP project totaled about 12.5 billion orders, marking the company's successful transformation of municipal service outsourcing service provider. Orders are expected to be completed within 2-3 years, 17-18 years will be a concentrated release period, promoting the company's performance into an explosive period.
3. Profit forecast
From 2017 to 2018, the company is expected to achieve a net profit of 240 million and 330 million, corresponding to EPS 0.89,1.23, and PE 22X, 16X, continue to push.
4. Risk hint
The development of PPP is not up to expectations, and the progress of military business is not as expected.