Key investment points:

Main high-end equipment + energy conservation and environmental protection. Based on the main business of structural parts, the company acquired Youzhi technology, Jiechi technology and Shanghai apani, and arranged the fields of waste gas flow monitoring, circuit board back market and high-voltage electrode boiler. In the future, the parent company will focus on equipment and develop in the direction of automation; Subsidiaries provide value-added services for energy conservation and environmental protection, operation and maintenance and design. Relevant enterprises have performance commitments, corresponding to the current market value and cheap valuation. At the same time, the industry is in the period of policy transformation. There is huge demand for product substitution, with significant growth rate and long-term optimism.

Youzhi technology, waste gas flow monitoring platform. Because the measurement of waste gas flow has been inaccurate, the Ministry of environmental protection issued a document to standardize the calculation method and improve the accuracy. The matrix multi-point exhaust gas flow detection equipment produced by the company has obvious advantages over traditional technology and can realize product substitution. At present, it has received policy support from many provinces and cities. The demand for testing equipment for one thermal power unit is 2.5 million, with a total market size of 20 billion. At present, the cumulative replacement volume of the company accounts for less than 4%, which has a large development space. The former major shareholder promised a net profit of 58 million in 2016.

Jiechi technology, circuit board waste liquid aftermarket. Focusing on the post-market treatment of circuit board etching waste liquid, using ion-exchange membrane copper extraction technology to replace the traditional waste liquid treatment technology can realize 100% recovery of etching liquid and increase copper output at the same time. Jiechi technology adopts the sharing