Tus-sound (000826.SZ): Impressive Growth and Promising Prospect of Sanitation Business April 19, 2018

Summary of Investment

  • Sanitation business has become the driving force of income growth and structural transformation;
  • The funds in hand after fund-raising were abundant, providing strong momentum towards development;

Investment Rating

The development prospect of sanitation business of the company and cooperative development under the industry chain are optimistic. The company is now equipped with abundant funds and strengthened operation duration ability after the completion of directional private placement. We estimate, from 2018 to 2019, the net profit of the company will reach RMB1586/1980mn, respectively, EPS of 1.55/1.94, equivalent to a PE of 18.9/15.1. We give a target price of RMB37.2 and the Buy rating. (Closing price as at 17 April 2018)

About the author

Profile photo of Wang Yannan

Wang Yannan
Phillip Securities (HK)

Graduated from the University of Science and Technology of China with a Masters degree in Management and major in Financial accounting and Economics throughout her academic study.

Currently Covering Environmental Protection and New Energy sectors as an analyst in Phillip Securities and focus on the macro policy´╝îindustry and fundamentals to explore the investment value.

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