This report is read as follows:
The company intends to introduce the War Investment Zhongying Fund to give full play to its collaborative advantages, and further promote the three main businesses of ecological restoration / ecological culture and tourism / ecological products, which will ensure the smooth progress of the business on hand.
Main points of investment:
Maintain and increase holdings. Taking into account that the company's proposed introduction of war investment will give full play to its synergistic advantages, and the steady progress of the three main industries, maintain the forecast company's EPS of 0.75max 0.94 PE in 2019-21, with a growth rate of 31x26max. 22%; maintain the target price of 16.74RMB, corresponding to the 22.3 shock of 2019-20-21 17.8exp 14.4 times increase holdings.
It is proposed to introduce the War Investment Zhongying Fund to give full play to its synergistic advantages and promote the solid promotion of the business. 1) according to the company announcement, controlling shareholder Wang Yingyan and Vice President Pan Naiyun plan to transfer 6262 and 2.64 million shares to Zhongying Fund at 13.5 yuan per share; after the transfer, Wang Yingyan will still be the controlling shareholder. Zhongying Fund will hold 9.68% as the second largest shareholder; 2) Zhongying Fund is the capital operation and foreign investment platform of Xiangjiang Group (Changsha City is an important state-owned enterprise). Xiangjiang Group focuses on the areas of primary and secondary land development / urban infrastructure operation / ecological culture and tourism. Xiangjiang New area, which is responsible for, is in urgent need of construction and development as the first national new area in the central and western regions. 3) the main business of the company and Xiangjiang Group are highly cooperative and complementary, and it is expected to fully benefit from industrial coordination / market and resource sharing / financial support / business support in the future.
Comprehensively promote the three main industries, benefit from garbage classification wood fun is expected to accelerate the layout. 1) comprehensively promote the three main industries, realize the in-depth development of ecological restoration / ecological culture and tourism business, and focus on the market breakthrough of ecological products; 2) Wood interest, as an important part of ecological products, the huge market space for the further promotion of waste classification (solid waste in gardens can be used as raw materials) / beautiful China construction and organic mulch will steadily increase its income and profit contribution in the future. At present, the commissioning of the first standardized production line has been completed and has reached production; 3) strict control of PPP business, paying attention to project quality and cash flow; 4) vigorously expand new businesses such as mine repair; 5) after the fixed increase is in place, there are plenty of funds on hand (2.2 billion of funds at the end of Q1) to ensure the promotion of business.
Catalyst: the growth rate of capital construction has stabilized and rebounded, the capital has continued to be loose, and the marginal improvement of the PPP model has been improved.
Core risks: lower-than-expected landing and promotion of orders, tight funding, slow infrastructure growth, etc.