Main points of investment

1. The performance has declined slightly, and the future growth point lies in the PPP+ people joining the army.

The company's performance is reduced by 10-20%, mainly due to the return of the science and technology income tax rate of Anshan Senyuan, a wholly-owned subsidiary, to 12.5% from 0% last year, and a sharp drop in government subsidies compared with the same period last year. As well as the increase in liquid capital borrowing led to an increase in interest expenses, resulting in a decline in operating performance in the current period compared with the same period last year.

In the future, the two-factor superposition of PPP+ civilian participation and military participation will achieve a new growth point of the company and help the company enter the rapid development channel.

two。 Successful transformation service provider, high certainty of PPP performance

The company continuously won a total of 10 billion PPP orders during the year, and successfully transformed the service provider. Its PPP project is in line with the national development strategy and the project selected by the National Development and Reform Commission. It is a new round of strategic project for the revitalization and development of the northeast region and other old industrial bases. It is expected to continue to take orders in the future and constantly boost the company's performance. In addition, the opening of PPP asset securitization is an important measure to invigorate the stock assets of PPP project, speed up the capital recovery of social investors, and attract more social capital to participate in the construction of PPP project, which will push the company into a high-speed development channel.

3. Civilian participation in the army small leader, layout military industry + 3D printing to create the company's new growth point Senyuan shares in the new road maintenance machinery has become a first-class supplier of the army, the company's large thermal recycling units, road surface snow removal and cleaning equipment and other products into the military procurement, can join the military supply system. The company has also obtained the "Registration Certificate of equipment contractors", which further broadens the sales scope of the company's military equipment.

At the same time, the company's sand laser 3D printing technology will also serve the military field, will set key naval projects, with great potential, and is expected to become the next Wang Huaming team (J-20 matching). At present, the company's high-precision 3D printing project is progressing steadily, and it is expected that high-precision 3D printing industrial applications will be realized in the near future.

4. Profit forecast

From 2016 to 2018, the company is expected to achieve a return net profit of 80 million, 260 million, 340 million, corresponding to EPS 0.30,0.97,1.27 yuan, corresponding to PE 62x, 19x, 15x, maintain a strong recommendation.

5. Risk hint

The development of PPP is not up to expectations, and the progress of military business is not as expected.