Event
On November 14, Guo Yuanyuan, vice president and chief financial officer of the company, increased his holdings of 414500 shares through the secondary market. On the 15th, the company announced that the ban on 15.657 million shares held by Beijing Keqiao Jiayong Venture Capital Center was lifted.
Comment
Executives increased their confidence and lifted the ban on floor valuation. Guo Yuanyuan, the chief financial officer, increased the average holding price by 12.065 yuan on November 13, with a total increase of 5 million yuan, reflecting the company's executives' sufficient confidence in the company's rapid growth. The shares held by Beijing Keqiao Jiayong Venture Capital Center accounted for 2.14% of the total share capital of the company, and the cost price was about 7.99 yuan. it was listed and circulated on November 16. Beijing Keqiao is the original shareholder of Jinglan Muhe, and the lifting of the ban has a certain pressure on the company's share price. Lifting the ban and landing will help the company's valuation to bottom up.
Enter the northern garden, "ecological environment + Internet" another son. China's current urbanization rate is 57.4%, which is still a large gap from more than 80% of developed countries, and the demand for landscaping in the middle and later stages of urbanization continues to release. In September, the company acquired 90.11% equity of Northern Garden with 721 million yuan, paid 530 million yuan for 39.24 million shares per share, paid 190 million yuan in cash, and raised 510 million yuan for matching funds. The Northern Garden has promised that the net profit of non-return from 2016 to 2019 is not less than 423 million yuan, and the cumulative operating cash flow from 2017 to 2019 is not less than 174 million yuan, so as to further improve the company's "ecological environment + Internet" industry chain.
Buy Muhe water-saving, enter the water-saving irrigation industry. The state requires an additional 100 million mu of high-efficiency and water-saving irrigation area during the 13th five-year Plan, with an estimated market space of 150 billion. The company acquired 1.588 billion yuan of Muhe water-saving equity in September 2016, taking the water-saving plate as a starting point, first of all, to build an intelligent ecological water-saving industrial chain, and gradually improve the layout of energy conservation and environmental protection. New orders for smart ecological water-saving plate exceeded 10.6 billion yuan in 2017, an increase of 47% over the same period last year, making it the company's largest business segment.
The energy-saving output value of the 13th five-year Plan is set at 3 trillion yuan, and Beijing Lannengke has opened up the industrial energy-saving market. The National Strategic emerging Industry Development Plan of the 13th five-year Plan requires that the output value of high-efficiency and energy-saving industries should reach 3 trillion yuan in 2020. China's industrial energy consumption accounts for about 70% of the country's total energy consumption, which is a key area of the energy-saving industry.
In April 2015, the company established Beijing Lannengke and controlled 51% of the company, and mastered seven industrial energy-saving solutions, such as flue gas waste heat recovery in industrial enterprises, cogeneration of industrial tail gas, transformation and upgrading of coking enterprises, and so on. In 2017, Beijing Laneng Co., Ltd. added more than 1.2 billion new orders, successfully opening up the industrial energy saving market.
Investment suggestion
Senior executives increased their holdings by 5 million yuan to demonstrate confidence, lifting the ban on the landing of boots promoted the bottoming of valuation, the formation of the "ecological environment + Internet" industrial chain, and the turning point in the coordinated performance of water-saving, energy-saving and garden sectors. new orders exceeded 13.1 billion yuan in 2017, an increase of 44% over the same period last year, ensuring rapid growth. According to estimates, in 17-18-19, the company is expected to return to the parent net profit of 3.7,5.0,660 million yuan, EPS 0.56,0.69,0.90 yuan, corresponding to PE is 23,19,14 times, maintaining the "buy" rating.
Risk hint
Risk of major policy change; risk of order landing schedule; risk of slow collection of accounts receivable