This report is read as follows:
The company's 2017 performance forecast growth rate of 020% is in line with expectations. Excluding non-recurrent large orders, other sectors continue to grow well and continue to be optimistic about the advantages of the company's comprehensive environmental protection platform and maintain the "overweight" rating.
Main points of investment:
Maintain the "overweight" rating. Maintain the company's forecast of EPS0.25 for 17 years, 0.33 yuan, and if the 18-year reserve test EPS is 0.42 yuan (the current stock price PE=26) after the completion of the reorganization, this reorganization will not only increase profits, but also mark the company's official entry into the dangerous waste industry with high prosperity, the layout of the whole industry chain and the next city, maintaining the target price of 17.47 yuan and maintaining the "holding" rating.
In 2017, we will mainly promote the development of sub-blocks such as soil, consulting, waste incineration and so on. The company completed the 540 million contract for wind power and other new energy in Baotou Damao Banner in 2016, resulting in a high performance base (net profit of 142 million yuan in 2016). As the wind power new energy business is not the main line of the company's strategic development, the company continues to adjust its business pattern. it mainly promotes the business development of sub-blocks such as soil, consulting and waste incineration. judging from the 17-year performance forecast, the above two sectors perform better. Overall, the company's 2017 performance forecast is in line with market expectations, and if the new energy sector is excluded, the growth of the company's soil remediation, consulting and other business sectors is considerable, which is the main driving force for the growth of the company.
Flue gas treatment business is mainly sound operation, soil, consulting, waste incineration power generation operation and other new business. 1) in the soil sector, the company has sufficient technical reserves through R & D and overseas mergers and acquisitions, with a total of 1 billion soil remediation orders in 2017, an increase of 300% over the same period last year, ranking among the best in the same industry in the country, leading to sustainable performance growth. 2) in the consulting field, the company passed the EIA qualification expansion in July 2017, and the EIA team of 37 people is in a leading position in the industry. As a high profit margin segment with light assets, it is expected to make further efforts in the future. 3) in the field of waste incineration and power generation, the company has now established a full-process operation and management system, and the wholly-owned Hengyang, Xinyu and participating Changsha projects have been successfully put into production, and Hengyang Phase II, Liuzhi and other projects in hand will also contribute to performance increments in the future.