the entrusted operations into production

Quarter net profit, 57.9% c.m 42.1 year-on-year. The future market share growth comes from mbt sandals sale small project of ascension, the application of organic wastes and the entrusted operations into production.

Investment points:

The 2011 quarter 6238.8 yuan company business income year-on-year, 1108.7 yuan, profit amount 62.0% MBT Fumba. year-on-year, 947.7 million yuan, profit 52.9 per gross margin, 57.9% year-on-year increase, than last year the corresponding period 42.1 4.7 percentage points. Earnings per share 0.24 yuan.

Quarter income settlement project year-on-year increase, resulting in a sharp increase revenue and cost. Large and medium-sized landfill leachate treatment project accounts for gross margin than high, resulting in year-on-year increase.

Operating income almost entirely from environmental protection engineering business, entrust operating income from into operation last year two events, guangzhou xinfeng BOT project is expected to put into operation in the second half of this year.

Future growth hotspot:

(1) through the standard container equipment production increase small project contracting ability. Companies rely on small cast project expanding collected leachate treatment field, da postpartum new capacity 15,000 tons/day, provide 50-3000 tons/day processing ability range of leachate treatment equipment series products.

(2) by technical reserves coping garbage disposal mode changes brought about by the opportunity. MBT Kisumu2,Company in actively explore the market more organic kitchen waste, technology for dry anaerobic way. Company in landfill leachate treatment lead field has been clean technology, the future is expected to cut relevant industries.

(3) from EPC to EPC + C. Until 2011 quarter, the company has the changzhou, rizhao huangshan two projects, its operation in the 2010 operating income 223 million yuan, the company currently under construction project approximately 10 expected this year, but all put into production. June 2011, the company's largest guangzhou xing feng 1400 tons/day BOT project will put into production, and is expected to more than 1 million contribution income.

It is expected that the company 2011 earnings forecasts: EPS of 2013 - $1.55, 2.21, 30,600. MBT Fumba.Consider solid waste industry during the 1025 high-growth and company leader, give the firm a 2011 40 times PE, corresponding to the 2012 28 times PE. Target price of 62 yuan, "caution increasing". (cathay Pacific prosperous country people safe)