Filter media experts transform into environmental protection integrated service providers in purification plants, and their performance growth has improved significantly: Sanwei is a professional supplier of high temperature filter media, which is the core component of bag precipitators. since 2013, it has been transformed into an environmental protection integrated service provider of purification plant and smoke island treatment through both internal and external development strategy. In the first three quarters of 2016, the company achieved operating income of 622 million yuan and net profit of 83.2818 million yuan, an increase of 14% and 64% respectively over the same period last year. Xiamen Porting's consolidated table effectively improved the growth rate of the company's operating income and profit.

With the change of management and the fluctuation of control, the stock trading opportunities of the company have been further strengthened: recently, great changes have taken place in the management of the company, and the actual controllers, Mr. and Mrs. Roche, have been removed from their posts as directors of the company, and Luo Xiangbo has been relieved from his post as general manager. Qiu Guoqiang, the company's third largest shareholder, was elected as a director of the third board of directors with Zhang Yu. At the same time, director Liao Zhengzong (chairman of Xiamen Porting) was elected chairman of the company, director Qiu Guoqiang was elected vice chairman of the company, and Zhu limin (Luoka environmental protection director, former deputy general manager of the company) was elected general manager of the company. Qiu Guoqiang, the new director, is one of the sponsors of the company, holding 8.62% of the company so far. According to the company announcement, Qiu Guoqiang plans to increase his stake in the company by no more than 100 million yuan in the next six months. The actual control of the company produces greater uncertainty, and the "grabbing" behavior of major shareholders will strengthen the trading opportunity of the company's stock, which should be paid more attention to.

Solid fundamentals and sufficient driving force for performance growth: ① acquires Roca Environmental Protection and improves the back-end service chain of factory purification:

Luoka Environmental Protection is a professional environmental protection company providing flue gas denitrification technology, key equipment and complete sets of equipment, and has independently mastered SCR denitrification technology, SNCR/SCR mixed denitrification technology, SNCR denitrification technology and other core technologies. Through the acquisition of Luoka Environmental Protection, the company successfully entered the field of flue gas denitrification and went further to the comprehensive service provider of flue gas treatment with the ability of dust removal, denitrification and desulfurization. ② acquires Xiamen Porting, cutting into the factory purification front-end service chain: in March 2016, the company completed the acquisition of 80% of Xiamen Porting, which is mainly engaged in the research and development, design and integration of bulk material conveying system. After completing the acquisition of Xiamen Porting, Sanwei can not only provide customers with comprehensive environmental protection services such as dust removal and denitrification for back-end flue gas treatment, but also provide customers with front-end bulk material transportation and storage system design, integration and maintenance services. the company's service chain has been greatly extended, and the comprehensive service capability of energy saving and environmental protection has been further improved. In addition, the two sides of the transaction can give full play to the synergy through the complementarity of customer resources. Among the above two acquisitions, Luoka Environmental Protection's non-net profit commitment for 2014-2016 is 26.5 million yuan, 33.13 million yuan and 41.41 million yuan. Xiamen Porting's non-net profit commitment for 2015-2017 is 72 million yuan, 97.2 million yuan and 131.22 million yuan. The above performance commitments are expected to significantly increase the company's profits.

Investment suggestion: 2017 is the target assessment year of "Qi Ten articles". Taking into account the improvement of the prosperity of the atmospheric governance industry, the high probability of completion of the performance commitment of Xiamen Porting, and the trading opportunities brought about by recent equity changes, we predict that the company's earnings per share from 2016 to 2018 will be 0.48 yuan, 0.62 yuan and 0.77 yuan respectively. We give the company a-A rating, and the target price for 6 months is 24.23 yuan. This is equivalent to a dynamic price-to-earnings ratio of 39 times 2017.

Risk hint: competition aggravates risk and enterprise integration risk