The National Development and Reform Commission and the China Securities Regulatory Commission jointly issued a document to promote the asset securitization of PPP projects. change. Provincial development and reform commissions are required to recommend 1-3 first batch of PPP projects in the traditional infrastructure field to be securitized financing and submit them to the development and reform commission before February 17, 2017. The full text of
is as follows:
In order to implement the "Opinions of the Central Committee of the Communist Party of China and the State Council on Deepening the Reform of the Investment and Financing System" (Zhongfa [2016] No. 18), the "Guiding Opinions of the State Council on Innovating Investment and Financing Mechanisms in Key Areas to Encourage Social Investment" (National Development and Reform Commission) [2014] No. 60) and other documents to promote the asset securitization financing of government and social capital cooperation (PPP) projects, the National Development and Reform Commission and the China Securities Regulatory Commission jointly issued the "On Promoting Government and Social Capital Cooperation (PPP) in the Traditional Infrastructure Field" ) Notice on work related to project asset securitization.
The "Notice" clarifies the scope and standards of asset securitization PPP projects. It is pointed out that it will actively promote the strict implementation of approval, verification, filing procedures and implementation plan review and approval procedures, sign standardized and effective PPP project contracts, the quality of project construction meets relevant standards, has been completed and has been in normal operation for more than 2 years, the investment return mechanism is reasonable, cash PPP projects in the traditional infrastructure field with continuous and stable flow, sound credit of the original equity holders and the ability to continue operating will be securitized for financing. Priority will be given to PPP projects that are in line with the national development strategy and whose main social capital participants are leading enterprises in the industry to carry out asset securitization.
The "Notice" stipulates the working mechanism for asset securitization of PPP projects. Provincial development and reform commissions, together with relevant industry authorities, actively promote securitization financing of eligible PPP projects, strengthen supervision and management according to the division of responsibilities, and urge project implementation units to do a good job in contract performance, asset transfer and isolation and other related work. Relevant units of the China Securities Regulatory Commission system are responsible for establishing a special green channel for business acceptance, review and filing, with dedicated personnel and posts responsible for improving the efficiency of review, listing and filing of asset securitization products related to PPP projects selected by the National Development and Reform Commission. The National Development and Reform Commission and the China Securities Regulatory Commission have strengthened communication and collaboration, shared PPP project information in a timely manner, and coordinated to resolve problems and difficulties existing in the asset securitization process.
The "Notice" puts forward requirements for the supporting work of asset securitization of PPP projects. This includes guiding market entities to establish a compliance and risk control system, encouraging intermediaries to carry out PPP project asset securitization business in compliance with laws and regulations, actively cultivating and introducing diversified investors, and establishing risk monitoring, default disposal mechanisms and markets for PPP project asset securitization. We will optimize the credit enhancement mechanism and study and improve relevant information disclosure and duration management requirements.
"Notice" also made clear arrangements for recent work. Provincial development and reform commissions are required to recommend 1-3 first batch PPP projects in the traditional infrastructure field to be securitized financing and submit them to the National Development and Reform Commission before February 17, 2017. The National Development and Reform Commission and the China Securities Regulatory Commission will work together to strive to issue PPP project securitization products as soon as possible, and promptly summarize experiences and exchange and promote them.
This is the first time that the relevant departments of the State Council have officially launched asset securitization of PPP projects. It is of great significance to revitalize the existing assets of PPP projects, improve the liquidity of PPP project assets, better attract social capital to participate in PPP project construction, and promote the sustainable and healthy development of my country’s PPP model. .
China Communications Construction: Moderate growth in order revenue and an increase in gross profit margin of the same caliber
China Communications Construction 601800
Research institution: GF Securities Analysts: Tang Xiao, Yue Hengyu Date of writing: 2016-11-03
Core point of view:
Moderate growth in orders, overseas Order and investment contracts are the highlights.
New overseas orders signed were 130.093 billion, a cumulative year-on-year increase of 27.62%, which is the main source of growth; on the other hand, the PPP model promoted by the country in recent years has led to more and more projects undertaken by companies using the PPP form, and new investment contracts were signed in the first three quarters. 125.432 billion, which has exceeded the whole of last year. The revenue of
increased slightly, and the gross profit margin of the same caliber increased significantly.The revenue growth rate achieved by
Company in the first three quarters dropped significantly compared with the 10.85% growth rate in the same period last year, which may be related to the low growth rate of newly signed orders last year that has been transmitted to this day. The gross profit margin of the same caliber was 12.68%, a significant increase of 1.71 percentage points compared with the same period last year. This may be related to the company's strict control of subcontracting costs this year and accelerating completion and settlement progress to expand profit margins.
Multiple backgrounds are superimposed, and the valuation level of the construction sector is expected to continue to improve as a whole.
We believe that the rapid rise of large construction stocks in this round is due to the following reasons: First, under the background of asset shortage, low-valued products are actively purchased due to the need for asset allocation; second, under the background of RMB internationalization, incremental funds enter the market and push up the prices. The valuation level of low-valued construction stocks; third, the rules for new stock issuance encourage new institutions to buy safe, low-valued stocks; fourth, the implementation of debt-for-equity swaps is expected to spread to state-owned construction companies.
These factors are likely to be maintained in the long term, so the valuation increase of large construction stocks may not be over yet, which may lead to an increase in the valuation of the entire construction sector.
investment advice. The company's valuation of
is low, and it has strong appeal under the current background of asset shortage; the company's current orders and revenue growth are showing a moderate growth trend, and we expect this situation to continue; in the country's steady growth and vigorous There is still room for improvement in the valuation of companies currently promoting PPP. We continue to be optimistic about the company's future development and estimate EPS from 2016 to 2018 to be 1.08, 1.19, and 1.31 yuan, maintaining the company's "buy" rating.
risk warning.
Investment growth continues to decline, and order execution progress is less than expected.
JJT: Performance growth is in line with expectations, implement endogenous and external development
JJT 300284
Research institution: Changjiang Securities Analyst: Zhou Song Writing date: 2016-11-02
Event description
The company announced the third quarter report of 2016.
event comments
performance growth is in line with expectations, implementing endogenous and external development. In the first three quarters of 2016, the company achieved operating income of 2.070 billion yuan, a year-on-year increase of 39.69%, net profit attributable to shareholders of listed companies of 242 million yuan, a year-on-year increase of 20.47%, and basic earnings per share of 0.44 yuan/share. The company's profit growth was mainly due to the growth in business volume of Yanning's subsidiary and the consolidated contribution from the acquisition of EPTISA during the reporting period. In the future, the company is expected to continue to implement the endogenous + external development strategy to consolidate and deepen the company's competitiveness, so that its performance will continue to maintain a high growth trend.
profitability and cash flow declined. The company's gross sales profit margin in the first three quarters of 2016 was 31.37%, a year-on-year decrease of 5.44pct, which was due to the increase in the subsidiary's low-margin business revenue share and the tax-to-business tax reform; the net profit margin was 11.67%, a year-on-year decrease of 1.86pct. The expense rate during the period was 15.10%, a year-on-year decrease of 0.42pct, of which administrative expenses increased by 80 million yuan due to business growth and agency fees for mergers and acquisitions of foreign companies, but the administrative expense rate decreased by 0.42pct year-on-year to 11.71%. During the reporting period, the company's engineering contracting business advanced funds increased, and its operating cash flow was -590 million yuan, a decrease of 141 million yuan from -449 million yuan in the same period last year.
.
company achieved operating income of 10.81, 487, 736, and 846 million yuan in Q4 last year and Q1, Q2, and Q3 this year respectively, with year-on-year growth of 24.35%, 29.73%, 47.87%, and 39.14% respectively; it achieved net profits attributable to shareholders of listed companies of 1.10, 0.55 ,071,116 million yuan, a year-on-year increase of 19.45%, 31.03%, 22.43%, and 14.98% respectively. Due to the seasonality of settlement, the company's fourth quarter revenue and profit contributed more to the full year's performance.
has diversified operations and sustained high performance growth. The company's original main business was transportation engineering consulting and engineering contracting. Currently, the company's business is transforming to diversification to overcome the impact of the slowdown in growth of its traditional business due to the macroeconomic downturn. The revenue share of the original transportation engineering business has dropped to the current At about 50%, the company's diversified operations are accelerating, and breakthroughs have been made in the design business, testing business, rail transit and other businesses. It is expected that the company's order situation will be good this year, the new engineering consulting business will grow rapidly, and the company's regions outside Jiangsu will continue to maintain steady growth, and the national layout will be accelerated.
In addition, the company has carried out diversified operations through acquisitions and created new profit growth points to overcome the impact of the macroeconomic downturn in its traditional main business. In addition to the previous acquisition targets that will continue to contribute to performance in the future, the recently acquired testAmerican, EPTISA and Zhongshan Water will also With the smooth consolidation, we will continue to contribute to performance.
enters the water conservancy market and creates a water environment industry chain. Since the acquisition of environmental testing company testAmerican, it has entered the Zhongshan Water Conservancy. The company has developed water conservancy design business through Zhongshan Water Conservancy, combined with testAmerican’s advantages in all-round environmental testing services such as water, air, and solid waste, to form a combination of environmental assessment, consulting, and third-party services. The upstream and downstream linkage services integrating three-party testing, engineering design, wastewater treatment and operation services will help the company enter the water conservancy construction market and undertake the water environment management PPP business.
In addition, the company has established a global engineering consulting service platform through the acquisition of Spanish EPTISA and a private increase to supplement the company's funds, further accelerating future overseas business expansion and external mergers and acquisitions.
investment advice: The company is predicted to have EPS of 0.71/0.92/0.118 yuan from 2016 to 2018, corresponding to a PE of 34/26/20 times from 2016 to 2018, giving a buy rating.
Gezhouba: Real estate and PPP drive Q3 performance to accelerate growth. Continuous external mergers and acquisitions promote the leapfrog development of environmental protection business
Gezhouba 600068
Research institution: Essence Securities Analyst: Xia Date of writing: 2016-11-04
PPP construction and real estate settlement are accelerated to accelerate Q3 performance. The company announced that the cumulative revenue from January to September was 63.327 billion yuan, a year-on-year increase of 21.75%; the net profit attributable to the parent company was 2.243 billion yuan, a year-on-year increase of 24.96%. In the third quarter, the single-quarter revenue was 24.051 billion yuan, a year-on-year increase of 32.29%, and the net profit attributable to the parent company was 801 million yuan, a year-on-year increase of 48.33%. The accelerated performance growth was mainly due to the increase in real estate transfers in the third quarter, the accelerated construction progress of PPP projects, and the consolidation of some environmental protection businesses. The company signed new orders of 144.925 billion yuan in the first three quarters, accounting for 72.46% of the annual plan. As of June 30, the total contract value of projects under construction was 444.5 billion yuan, and the remaining contracts were 228.9 billion yuan, which was 2.8 times the revenue in 2015.
's gross profit margin has declined, and operating cash flow has improved month-on-month. The company's gross profit margin in the first three quarters was 12.98%, a year-on-year decrease of 2.54 pct, mainly due to the impact of the business tax-to-VAT reform and the significant decline in gross profit margins in sectors such as cement and civil explosives. The ratio of business taxes and surcharges to revenue decreased by 1.43 pct. The expense rate during the period was 7.52%, a year-on-year decrease of 0.59 pct, of which the sales expense rate/management expense rate/financial expense rate changed by 0.07/0.06/-0.73 pct respectively. The changes in financial expenses were mainly due to the increase in interest income and the decrease in interest-bearing debt interest rates. Net interest rate increased by 0.09 pct to 3.54%. The net cash outflow from operating activities was 4.830 billion yuan, mainly due to the company's real estate sector investing more in land bidding and project development, but this was a decrease from the net outflow of 5.736 billion yuan in the same period last year. The net operating cash inflow in the third quarter was 1.18 billion yuan, a significant improvement from the previous quarter.
PPP orders account for the largest proportion of central enterprises, with excellent incentive mechanisms and the greatest performance flexibility. Relying on the advantage of its central enterprise background, the company has signed framework agreements with local governments in Guiyang, Nanjing and other places worth over 250 billion yuan since last year, and is expected to continue to implement them and turn them into executable orders in the future. The company has a profound understanding of the PPP business, strong project management capabilities, excellent incentive mechanisms, extremely low financing costs, and obvious advantages in participating in PPP projects across the entire industry chain. Last year, 53.6 billion yuan of newly signed PPP projects were announced, and the cumulative number of announced PPP orders so far this year has reached 59.2 billion yuan. As of June 30, the company's outstanding contract value for PPP projects was 42.3 billion yuan, accounting for 18% of the total remaining contracts. The company is the smallest among the central construction enterprises, has an advantageous incentive mechanism, and relatively large performance flexibility. It is expected to use PPP to quickly increase its market share and ensure continued rapid growth of its main business in the future.
continues to expand its mergers and acquisitions to accelerate its large-scale environmental protection business layout. The company continues to carry out external mergers and acquisitions in the field of water affairs and renewable resources. The semi-annual report announced the establishment of a water operation company for professional management, the acquisition of the remaining 25% equity of Kaidan Water, the acquisition of 7 sewage treatment plants under Hunan Haichuanda Company, and the implementation of water affairs PPP projects. The total investment reaches 5.42 billion yuan, and it already has 38 water plants with a daily processing capacity of 2.2 million tons. In terms of renewable resources, the company established a joint venture with Xingye Steel to establish Gezhouba Xingye Renewable Resources, holding 65% of the shares, and continues to improve the national regional layout. At the same time, businesses such as sewage sludge disposal, new road materials, and solid waste treatment are also advancing rapidly. It is expected that the annual environmental protection revenue will reach about 15 billion yuan. It is expected that the company will continue to actively adopt domestic and overseas mergers and acquisitions to further improve the environmental protection sector, which is expected to become the largest business in terms of revenue in the future.
investment advice: We estimate that the company's EPS from 2016 to 2018 will be 0.71/0.87/1.04 yuan respectively, and the current stock price corresponds to PE 12/10/8 times respectively. We give a target price of 12.78 yuan, corresponding to 2016 PE 18 times, and buy -A rating .
Risk warning: Risks of project implementation not meeting expectations and risks of significant macroeconomic fluctuations.
Bishuiyuan: CDB reduces its holdings in order to deleverage and continues to be optimistic about the company's development in the future.
Bishuiyuan 300070
Research institution: Qunyi Securities (Hong Kong) Analyst: Qunyi Securities (Hong Kong) Research Institute Date of writing: 2016-12-16
Conclusion and suggestions: The company announced that China Development Bank reduced its holdings of 56,282,398 unrestricted tradable shares through block transactions on December 14, 2016, accounting for 1.80% of the company's total share capital. The undertaker of the large transaction was Chairman Wen Jianping , the actual controller of the company. The transaction price was 18.52 yuan per share, and the total amount reached 1.042 billion yuan. Combined with the company's previous plan to increase holdings of Chairman Wen Jianping, the goal of increasing stock holdings by 1.0-1.1 billion yuan in the next 6 months has been basically completed. After the completion of the transaction, the shareholding ratio of CDB Innovation (a wholly-owned subsidiary of China Development Bank) dropped from 10.17% to 8.37%, and Wen Jianping’s shareholding ratio increased from 21.17% to 22.97%. In August 2015, CDB participated in the company's private placement plan in the form of an asset management plan, with a total of 3 billion funds, of which 2 billion were bank priority funds and 1 billion principal. This reduction was for the purpose of reducing financial leverage. Wen Jianping increased his holdings by 1 billion, and the other 1 billion was solved internally by CDB Financial. CDB will continue to be optimistic about the company's development in the future and firmly support the company. The company is expected to achieve net profits of 2.036 billion yuan (YOY+49.50%) and 26.04 (YOY+27.94%) in 2016 and 2017 respectively, with EPS of 0.65 yuan and 0.83 yuan. The current stock price corresponds to the dynamic PE of 27X and 21X in 2016 and 2017, and the target The price is 22 yuan (PE26X in 2017).
The reduction of holdings of Guobinxin was mainly due to the need to reduce leverage: In August 2015, Guobinxin used Qilu Bichen No. 2 fixed-adjustment collective asset plan and Xinhua Fund- Minsheng Bank -Bishuiyuan No. 1 asset management plan, respectively. 67.5 million shares and 61.4 million shares were subscribed at a subscription price of 42.16 yuan/share (17.07 yuan/share after ex-rights and dividends), accounting for 10.17% of the total shares. Qilu Bichen No. 2 and Xinhua Fund Bishuiyuan No. 1 reduced their holdings by 54 million shares and 2.286 million shares respectively, with reduction ratios of 1.73% and 0.07%. After the completion of the shareholding reduction, Qilu No. 2 and Xinhua Fund accounted for 3.6% and 4.77% of the total shares respectively, totaling 8.37%. It is understood that the leverage ratio of the two asset management plans is 1:2. Combined with the current regulatory deleveraging requirements, this reduction is mainly to reduce the leverage ratio. Own funds have not been withdrawn. CDB Financial’s own funds hold shares The proportion has increased compared to the previous year. The CDB Department is still optimistic about the company's development in the future and will spare no effort to continue to support the company's development. Wen Jianping, chairman of
, increased his holdings by 1.8%: In recent years, Bishuiyuan has shown rapid development and continued private placements and mergers and acquisitions. In the past 14 years, relatively large private placement plans such as China Development Bank's investment in shares and the acquisition of Jiu'an Construction have been completed. Chairman Wen Jianping's shareholding ratio has also been diluted from 25.05% to 21.17%. Based on his confidence in the company's strategy and development prospects, and Optimistic about the value of long-term investment in the domestic capital market, this time it used its own funds of 1.042 billion yuan to increase its holdings by 1.8% of the shares. After completion, the shareholding ratio rose to 22.97%, further consolidating its position as the largest shareholder.
The fourth quarter is particularly critical: the company's industry and business model determine the fourth quarter's largest contribution to the company's annual performance. From 2011 to 2015, the fourth quarter revenue accounted for 64.1%, 60.0%, 59.8%, 62.6%, and 67.4% of the total revenue respectively, and the net profit attributable to the parent accounted for 76.52%, 81.32%, and 84.17% respectively. , 82.25%, 81.42%. The third and fourth quarters are also the peak period for order harvesting. As of September 30, there were 87 new orders for Bishuiyuan engineering projects, with an amount of more than 8.74 billion yuan (including 8.623 billion yuan for EPC and 117 million yuan for BT). There were 32 new orders, amounting to 11.766 billion yuan. With the launch of the third batch of PPP demonstration projects by the Ministry of Finance, the launch of PPP projects will be further accelerated in the future. As a water treatment leader with core technologies, the company's performance is guaranteed to grow high.
Profit Forecast: The company is expected to achieve net profits of 2.036 billion yuan (YOY+49.50%) and 26.04 (YOY+27.94%) in 2016 and 2017 respectively, with EPS of 0.65 yuan and 0.83 yuan. The current stock price corresponds to the dynamic PE of 26X in 2016 and 2017. , 21X, the future PPP business development space is broad, and the performance is expected to continue to exceed expectations, giving a "buy" recommendation with a target price of 22 yuan (PE26X in 2017).
Shandong Luqiao updated report: PPP delivery scale is large, Q3 single quarter net profit increased by 34%
Shandong Luqiao 000498
Research institution: Guotai Junan Analyst: Han Qicheng Date of writing: 2016-10-27
Increase holdings.The company's revenue in the first three quarters was 4.21 billion (+4.30%) and net profit was 248 million (+20.87%), in line with expectations. Q3 single-quarter net profit of 120 million grew rapidly (+34%). Considering that the company will benefit from the peak period of transportation construction in Shandong Province and the 3.3 trillion transportation PPP project, it maintains its forecast of EPS of 0.42/0.49 yuan for 2016/17. Considering that Shandong Province is a PPP-heavy province and the company's newly signed orders have a high multiple of revenue coverage, the target price is raised to 8.80 yuan, corresponding to about 21 times PE in 2016, and the company maintains its overweight position.
's operating net cash flow has improved significantly, and its financial statements are sound. 1) Gross profit margin is 14.99% (-0.61pct), net profit margin is 5.91% (+0.82pct), basically stable; 2) Operating net cash flow is 79 million (-196 million in the same period last year), which is the collection and prepayment of BT project Due to the increase in payments, the Q3 single-quarter operating cash flow was 170 million yuan (-38%), which may be due to the large base number (270 million) in the same period last year; 3) The expense rate during the period was 8.47% (+1.93pct), and the financial Expenses of 61 million (+1196%) were due to the confirmation of financing income being less than the same period last year; 4) Accounts receivable 3.3 billion (+13.16%), accounting for 25.93% of total assets, and asset impairment losses of -9.13 million (-428 %), based on the aging analysis of receivables, the provision for bad debts was less than the same period last year.
has benefited from the climax of highway construction and PPP implementation in Shandong. 1) Backed by Shandong Expressway Group (operating 65% of the provincial expressways) and Shandong Hi-Tech Investment, it will fully benefit from the peak of Shandong highway construction (the investment target for highway construction in Shandong Province in 2016 is 57.6 billion yuan), and it is expected to sign new units The revenue multiple of increased coverage is high; 2) Pavement maintenance is advancing steadily (newly signed orders exceed 400 million), the technical strength is strong, and the gross profit margin is 12.42pct higher than that of the construction business; 3) A fixed increase of 3 billion has been obtained with a fixed increase of no less than 5.49 yuan/share. Passed by the general meeting of shareholders and approved by the State-owned Assets Supervision and Administration Commission, major shareholders and subsidiaries subscribed for 30% + locked for 3 years to show their confidence; 4) Shandong Province is a PPP-focused province, with a transportation PPP project scale of 3.3 trillion, and the company is expected to benefit.
Risk warning: Performance growth is lower than expected, PPP implementation is lower than expected, etc.
Xianhe Environmental Protection: The performance in the first three quarters is in line with expectations. The prototype of smart environmental protection is gradually taking shape
Xianhe Environmental Protection 300137
Research institution: Shenwan Hongyuan Analysts: Liu Xiaoning, Dong Yi'an Date of writing: 2016-11 -04
event:
Q1-3 The company's revenue was 486 million yuan, and the net profit attributable to the parent company was 70 million yuan, a year-on-year increase of 28.31% and 18.55%, in line with expectations.
Investment Points:
The company’s Q1-3 performance was in line with expectations. The company's Q1-3 revenue and net profit attributable to parent companies were 486 million yuan and 70 million yuan respectively, a year-on-year increase of 28.31% and 18.55%, in line with expectations. The increase in revenue was mainly due to the increase in orders, especially the increase in the company's atmospheric grid orders, as well as the performance contribution of subsidiaries Guangzhou Cordiron and Guangxi Xiande. The main reason why the increase in net profit was less than the increase in revenue was: the increase in wages, research and development expenses and depreciation expenses caused a year-on-year increase in administrative expenses of 37.51% (26 million yuan).
company's "drag net" concept has gradually become the prototype of smart environmental protection. The grid monitoring system is the company's strategic support product. In the first half of the year, the company launched a grid-based precision monitoring and decision support platform for air pollution prevention and control. At present, the platform has covered more than 20 cities and more than 2,000 monitoring points. In August, the company signed a contract for the Baoding City Air Pollution Prevention and Control Grid-based Accurate Monitoring, Early Warning and Decision Support System Project, with a total contract value of RMB 87.77 million. It is the largest contract the company has won in the field of grid monitoring, and represents the company’s The concept of "Tian Luo Di Net" is gradually gaining market recognition, which will help the company further expand the domestic grid product market, and may further develop into a prototype of smart environmental protection and be promoted in the future. The
industry strengthens the construction of VOCs monitoring capabilities, and the company, as a leading atmospheric monitoring company, is expected to be the first to benefit. The outline of the 13th Five-Year Plan has newly included VOCs into the total control indicators, and proposed that VOCs should promote total emission control of volatile organic compounds in key areas and key industries, and the total national emissions will be reduced by more than 10%. As of August 2016, 11 provinces and cities have successively introduced VOCs emission standards, and the nationwide VOCs control has begun. The building of government monitoring capabilities will bring new markets to corresponding monitoring instrument companies. In 2015, the company won the bid for the first large-scale project in the field of VOCs management in the industry - Baoding Xiong County VOCs third-party management project in the packaging and printing industry. At present, the company's VOCs pollution control solutions for organized and unorganized emissions of enterprises have been applied in many places across the country. In May, Hebei Province's charging standards will be implemented, and the company's business will benefit and accelerate.
company vigorously promotes industrial upgrading, upgrading from a single product to a "product + service + operation" model. The company is the leading enterprise of high-end environmental monitoring instruments in China and the only enterprise in China that has all the products required for the nationally planned environmental monitoring network and pollution reduction monitoring system. Cordilon and Guangxi Xiande acquired by the company are third-party professional operation and maintenance service providers in environmental air and water quality monitoring. The company is gradually building a "product + service + operation" monitoring full industry chain model. In addition, in H1 of 2016, the company also acquired 60% of the equity of Sunset Laboratory Inc. through its US subsidiary, laying out its presence in the carbon aerosol analysis market; through Xianhe Zhengyuan, it acquired Beijing Weijia Environmental Technology Co., Ltd., and entered the civilian product market. Purify the field.
investment rating and valuation: We lower the net profit forecast for 2016-18 to 1.05, 1.45, and 187 million yuan (originally 1.25, 1.73, and 223 million yuan), corresponding to EPS of 0.31, 0.42, and 0.54 yuan/share, 16, PE in 2017 is 52 times and 38 times. We believe that in the future, the company will accelerate its entry into high-end fields such as VOCs governance, third-party monitoring, and grid monitoring, and its performance will enter a new round of rapid growth. We maintain a "buy" rating.
Xingyuan Environment: The performance of the third quarter report is slightly lower than expected. Expect the company’s PPP performance to explode
Net profits were 1.332 billion yuan and 152 million yuan respectively, a year-on-year increase of 117.85% and 144.64% respectively. Due to factors such as the G20 meeting and order execution in the third quarter that did not meet expectations, the performance was 20% lower than expected.
company's performance in the first three quarters was lower than expected. In the first three quarters of 2016, the company's revenue and net profit attributable to the parent company were 1.332 billion yuan and 152 million yuan respectively, a year-on-year increase of 117.85% and 164.64% respectively. Due to factors such as the G20 meeting and order execution in the third quarter, the third quarter performance was lower than expected. The growth in the company's operating income and net profit is mainly due to the consolidation of the wholly-owned subsidiary Zhongyi Ecology in March, as well as the continued growth of the original dredging business, municipal sewage and industrial wastewater business. The advantages of
's entire industry chain layout are highlighted, and the company's large-scale PPP order reflects that the company's replication and expansion model has been further verified, and it is optimistic about future performance releases. In September 2015, the company announced a 2.5 billion framework agreement signed with Zhao'an County , and pre-won the bid for the water supply and drainage engineering PPP project on September 28, 2016, with a total investment of 1.12 billion yuan. We estimate that the Wenzhou .8 billion project and the current 1.1 billion Zhao'an project on August 22 are just the beginning. We look forward to the company taking advantage of the PPP industry in the future and using successful case operation templates to quickly achieve sustained performance releases brought about by rapid growth in replication and expansion. .
has the ability to undertake general contracting of PPP projects and collaboratively increase net profit margins. After years of mergers and acquisitions, the company has completed the industrial chain links and has a vertical and comprehensive involvement in the water treatment industry chain. It is one of the few environmental management companies in the market that truly has a comprehensive solution. Moreover, the general contracting model can reduce middlemen and increase the company's overall project profit margin. Referring to existing cases, the net profit margin of the water treatment turnkey model can be as high as 15-20%. The company's net profit margin in 2015 was 11.7%, and there is still plenty of room for growth.
company is actively expanding through mergers and acquisitions, transforming into a provider and service provider of comprehensive environmental and energy-saving technology solutions. In 2015, the company invested in the establishment of Xingyuan Energy Saving Subsidiary, which is mainly engaged in the comprehensive treatment and resource recovery of organic waste gas and waste liquid; it controlled Yinjiang Environmental Protection Technology and obtained its manufacturing capabilities for energy saving, water treatment and other equipment; it acquired part of the equity of Shanghai Haocang and Increase capital to enhance the informatization strength of environmental protection business; acquire Zhongyi Ecology to lay out ecological restoration and landscaping. Holding a controlling stake in Hon Hai Environmental Protection, it focuses on providing remote quality control services for water quality monitoring equipment; the acquisition of three-by-three preparations is conducive to market development and the acquisition and implementation of PPP projects; Xingyuan Jujin M&A Fund has completed investment in the solid waste industry. At present, the company has gradually completed its upstream and downstream layout of the industry, and at the same time actively expanded horizontally into hot environmental protection industries, gradually building itself into a provider and service provider of comprehensive environmental and energy-saving technology solutions.
investment rating and valuation: Due to factors such as the G20 meeting and order execution in the third quarter not meeting expectations, we lowered the net profit for 2016-18 to 347, 598, 891 million yuan (originally 475, 717, 1.018 billion yuan), EPS They are 0.68, 1.18, and 1.75 yuan/share, corresponding to 69 and 40 times valuations in 2016 and 2017.We believe that the company has gradually transformed into an environmental protection system integrator and comprehensive environmental management service provider with the help of its capital platform and its core environmental protection equipment strength. It has a clear strategic idea, great potential for PPP orders in the future, and high flexibility in performance growth and market value growth. We maintain the "Buy" "Rating.
