Event
BA'an Water Affairs publishes 2018 semi-annual report
According to the 2018 semi-annual report released by Baan Water, the company's operating income in the first half of 2018 was 630 million yuan, down 21.06% from the same period last year; the net profit belonging to shareholders of listed companies was 121 million yuan, an increase of 0.66% over the same period last year. In the first half of the year, the company's EPS was 0.18 yuan, and the weighted average ROE was 5.48%, a decrease of 0.29% compared with the same period last year.
Brief comment
Revenue levels have declined, and operating projects ensure that profits remain stable.
The company achieved operating income of 630 million yuan in the first half of the year, a decrease of 21.06% compared with the same period last year. The main reason is that the company's new and old projects are in the alternating stage, and the overall completion progress is lower than that of the same period last year. However, the company received an investment income of 64.33 million yuan from operating BT and BOT projects in the first half of the year, smoothing the impact of declining revenue on performance to a certain extent, making the company's homing net profit in the first half reached 121 million yuan, 0.66% of the same period last year.
Two-way expansion at home and abroad, with great potential for performance growth
During the reporting period, the company concentrated its efforts on further developing high-quality projects at home and abroad, and successively signed the PPP project for the comprehensive transformation of the first ring water system in Cao County, the PPP project for the first plant and three networks in Yiliang County, Kunming, and the PPP project for upgrading the urban road network in Qinyang City. At the same time, the company also won the bid for the construction project of 50000 cubic meters / day desalination plant in Kurek Town, Mangeshi Prefecture, Republic of Kazakhstan, indicating that the company has further opened up the market space along the "Belt and Road Initiative" initiative. In the first half of 2018, the company added 3.408 billion yuan of BOT orders, and by the end of June, the company had orders for EPC and unexecuted BOT totaling 1.134 billion yuan, with an outstanding investment of 3.881 billion yuan during the construction period. The company currently has sufficient orders on hand and has great potential for performance growth in the future.
Extensive mergers and acquisitions have been fruitful, and resource integration has achieved results.
Since 2015, the company has acquired ItN, KWI, DHT and other overseas companies, and relying on its advanced technology, equipment and team, gradually build the company into an internationally competitive water treatment company. In the first half of 2018, the company integrated a total of 17 green water treatment process packages, while German ItN ceramic membrane Sinicized products have been selected into China Petroleum & Chemical Corp Puguang gas field produced water advanced treatment project plate ceramic membrane MBR process, the company will successfully sign up through the project to become China Petroleum & Chemical Corp network supplier.
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As a high-quality enterprise in the domestic water treatment industry, relying on the market space brought by "Belt and Road Initiative" and the existing integration of international resources, we believe that its pace of internationalization will gradually accelerate and is expected to become a first-class international environmental protection service provider in the future. We expect that from 2018 to 2020, the company will achieve operating income of 1.101 billion yuan, 1.267 billion yuan and 1.482 billion yuan respectively, and its net profit will be 182 million yuan, 223 million yuan and 285 million yuan respectively, and the corresponding EPS will be 0.27,0.33,0.42 yuan respectively.