Summary:

The company is mainly engaged in electricity, natural gas, tap water, hotels and other four major businesses. The company's power business has hydroelectric power stations and independent power network, and the power supply area is mainly distributed in some districts and counties of Leshan and Meishan.

Giving priority to the development of hydropower is an important policy for China's energy development. Hydropower resources are very important renewable energy. The development and utilization of hydropower resources is an important measure to increase energy supply, protect the ecological environment, cope with climate changes and achieve sustainable development. The company's own and grid-connected power stations have an installed capacity of 541455 kilowatts, of which the installed capacity of grid-connected hydropower stations is 448955 kilowatts, accounting for 82.92% of the total installed capacity, which has a strong competitive advantage.

During the 13th five-year Plan period, the optimization of energy structure and environmental pollution control at the national level will become the main driving force of natural gas consumption. According to the Energy Development Strategic Action Plan of the State Council (2014-2020), the proportion of natural gas in primary energy consumption will increase to more than 10% by 2020. The company's natural gas supply business is mainly in the main urban area of Leshan City, Wutongqiao City and some surrounding villages and towns in the main urban area of Leshan City.

Profit forecast: we expect the company's main income in 2017, 2018 and 2019 to be 2.134 billion yuan, 2.283 billion yuan and 2.409 billion yuan respectively, and its net profit to be 228 million yuan, 243 million yuan and 244 million yuan respectively, and its earnings per share to be 0.40,0.42,0.43 yuan respectively.

Risk analysis: 1) industry policy change risk; 2) water risk; 3) market competition risk; 4) other irresistible risks.