-In the first half year of 2014, the company has realized its turnover of 2.944 billion HK dollars, increased 19% comparing with the same period of last year. Among which profit attributable to shareholders is RMB 802 million Yuan, a 23% increase on a year-on-year basis. The earnings per share have reached 0.18 HK dollars, which nearly meet the expectation. Distributing interim dividend of 5 cents per share, the gross profit rate is 45.91%, a little decrease compared to the same period of last year. But, still, the company has maintained the expected annual growth rate of 20%.

-In the first half year, garbage power generating projects of Ninghai first stage and Nanjing first stage have been put into operation. Pizhou first stage, Sanya first stage and Shandong Shouguang project are under construction and will be put into operation the next half year. It is predicted that, at the end of 2014, the scale of garbage power generation will reach 15000 tons. Moreover, garbage disposal fees of three garbage power generating projects in Changzhou, Jiangyin and Yixing are increased successively in the first half year. And it is believed that more and more projects will rise their disposal fees in the future. Solid waste project has disposed garbage of 2.227 million tons in the first half year, increased 2% comparing with the same period of last year. The generated energy is 587GWh, a 15% increase on a year-on-year basis. As for profit, construction profit of the first half year has reached 1.527 billion HK dollars, a 22% increase on a year-on-year basis; operation profit is 320 million HK dollars, a 5.6% increase on a year-on-year basis. It is obvious that this year is also a construction year. Five new launched projects of this year will make a significant rise in operating data of the next year.

-In the first half of the year, all renovation projects of Zhangqiu sewage disposal plant and the first plant of Lingxian County have been put into operation. The volume of disposed sewage of the first half year is 277 million cubic metres, a 14% increase compared to the same period of last year. All water-related projects have realized the profit of 506 million HK dollar, a 12% decrease compare with the same period of last year. The main reason for the decrease is the reducing in water-related construction projects. At present, share acquisition from Hankore is still in progress. After the acquisition, water-related business profit is believed to grow substantially.

-The company has gained 11 new projects in the first half year, including 7 garbage power generating projects, 1 dangerous waste disposal project and 3 biomass projects. Investment volume is RMB 4.58 billion Yuan. This year is believed to be a year with the most biggest scale of new projects in company history. The company has great developing potential in the future while the main obstacle will still be the funds. In the first half of the year, the liability ratio is 41%, keeping balance with the end of 2013. In the future, the liability may rise gradually and financial expense may increase significantly.

-The company is the leader of solid waste disposal industry. Under sound environmental protection policy and condition of the nation, they have gained a large number of projects in the first half year, each project is in rapid construction as well. The scale of garbage power generation has increased significantly, and it is predicted that the growth in this business will be fast and stable. With the acquisition of Hankore, new energy biomass projects and wind power projects, we believe that it is out of question for the company to maintain the compound growth rate of 20% in the next three years. We provided them the target price of 11.94 HK dollars in the next 12 months, equal to 30 times of the expected PE ratio of 2014. And we give them the rate of "Accumulate".

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