Bo Shi shares (002698) Company dynamic comment: Maintaining technological leadership Boao Environment will enter the industry payback period

Bo Shi shares (002698) Company dynamic comment: Maintaining technological leadership Boao Environment will enter the industry payback period

The business is developing healthily, and the first half of the performance forecast shows a high growth trend: According to the company’s performance forecast, the company’s net profit attributable to shareholders of listed companies in the first half of 2019 is expected to be 1.

46-1.

79 ‰, an estimated increase of 80-120% in the same period last year, in line with previous expectations.

This is mainly due to the healthy development of the company’s business in the first half of the year. The company’s main products such as traditional products and strategic new products have seen overall revenue growth, driving the company’s overall revenue and net profit growth.

In addition, the company’s holding subsidiary in the field of energy conservation, emission reduction and environmental protection-Harbin Boao Environmental Technology Co., Ltd. turned losses and contributed profits during the period, mainly due to industrial waste acids, acid gas treatment and recycling processes and equipment projects.Acceptance is confirmed in a series of reports.

Implement differentiated competition strategies and maintain technological leadership: As a large-scale intelligent complete equipment supplier, the company must maintain its own technological leadership to meet the industry-specific customer groups and their differentiated needs.

The strength of the company’s technological advantages, and constantly develop new products.

For the products in the field of cement packaging, if the development is successful, the company’s products will be expanded to new industries; strategic new products, high-temperature operation robots and automatic loaders are expected to continue to increase volume this year, and customer demand is increasing; regarding the automated production process of natural rubberAnd equipment research and development, has passed customer tests, will be further improved and is expected to expand to foreign markets; currently the company is still developing full-automatic PVC packaging and palletizing equipment. If the test results are satisfactory, it can be used to upgrade traditional equipment.Market prospects.

On January 24, the company and Sinopec multi-layer packaging code classification unit procurement contract.

The contract is excluding tax amounting to RMB 4,775.

860,000 yuan, accounting for 6 of the company’s 2018 operating income.

67%.

The contract is scheduled to be completed in 2019, which is expected to have a positive impact on the company’s 2019 or 2020 performance.

Technology leadership is an important means for the company to implement a differentiated competitive strategy, which will ensure that the company is located in a consolidated position and the company actively drives the improvement of the company’s performance.

Taking full advantage of the synergy effect, the Boao environment will enter the industry payback period in the next two years: the company combines its traditional intelligent complete equipment and environmental 无锡夜网 protection process equipment, and develops the industry around the company’s core genes and good market resources, forming a goodLocal synergy has improved the company’s core competitiveness.

The company’s 51% -owned holding subsidiary Boao Environment and its wholly-owned overseas P & P company have environmental protection technology with sulfide oxidation process technology as the core. It can process industrial waste sulfuric acid and sulfur-containing acid gases in chemical production.Collect, process, and generate pure sulfuric acid for recycling production to achieve energy saving, anticipation, environmental protection, and economic benefits.

At present, industrial waste acid, acid gas treatment and recycling projects are progressing smoothly.

Among them, on May 14, the company’s holding subsidiary Boao Environment and Shenghong Refining & Chemical shortened the exclusive equipment contract and patent license and engineering design agreement (excluding catalysts) for the waste acid regeneration unit, indicating that Boao Environment has further achieved in related fields.Positive progress.

The total amount of the contract excluding tax is RMB 3,784.

440,000 yuan, accounting for 4 of the company’s 2018 operating income.

13%.

As long as the project is successfully implemented, Boao Environment is expected to contribute considerable profits to the company in the future.

Investment suggestion: We predict that the company’s EPS for 2019-2021 will be 0.

31 yuan, 0.

41 yuan and 0.

49 yuan, corresponding to PE is 27 times, 21 times and 17 times.

Maintain the “Recommended” level.

Risk reminders: medium-to-long-term risks of continuous business development; continuous risks of technology and product innovation capabilities; risks of organizational production and product delivery.