□ .S.k.y. .H.o.n.g./.N.i.c.k. .Z.h.e.n.g　 .德.意.志.银.行.股.份.有.限.公.司

　　Historically, FPI's earnings have been heavily skewed toward 2H, especially in thefirst two years during a five-year-plan period. Strong top-line growth was partiallyoffset by surging finance cost （+174% YoY） as net gearing increased to 27% asof end-1H17 from 9% as of end-2016 likely due to investment associated withPPP projects. For 2Q alone, sales sustained a 36% YoY growth （vs. +34% YoY in1Q）， while NP growth visibly moderated to 15% YoY （from 48% YoY in 1Q）， largelydriven by a big jump in finance cost.

　　Maintaining Buy; risks

　　We retain our estimates post 1H results. We keep our DCF-based target price ofRmb45 （WACC: 8.5% and TGR: 2%） unchanged and maintain Buy. The valuationlooks compelling at 20x 2018E P/E, against 30% EPS CAGR over 2017-19. Keyrisks: slower-than-expected EMS growth and poor execution of investments.
　　1H17 review by segment

1H result largely inline; strong top-line partially offset by surging finance costNet profit rose 19% YoY to Rmb101m, on a 36% YoY top-line growth. 1H net profitachieved 19% of our full-year forecast （vs. 1H16: 21%）， which was largely inline.
Laboratory analysis equipment: Sales surged 103% YoY in 1H, mainlydriven by the consolidation of Anpel's accounts in 1H17. Addingback Anpel's revenue for 1H16, sales of laboratory analysis equipmentincreased 7% YoY on a like-for-like basis.
Environmental monitoring system （EMS）： Since 2H16, installation haswitnessed visible acceleration from the customer side, after a slow 1H16（down 2% YoY）。 In 1H17, sales growth further accelerated to 17% YoY,from 15% YoY in 2H16. According to management, initial feedback fromsales department suggests order flow for EMS was robust in 1H （30%+YoY），超变态网页游戏， which means revenue recognition is likely to further accelerate in2H when installation is completed. This, along with the contribution fromHuangshan PPP projects （NP of Rmb40-50m guided by management） in2H, should drive a strong 2H for EMS segment.
Highlights for other segments: Sales of industrial process analysiswere down 3% YoY in 1H, as downstream verticals are mainlytraditional heavy industries （mainly metallurgy, petrochemical, etc.）。

[买入评级]FOCUSED PHOTONICS INC.(300203)：1H INLINE;SOLID EMS ORDERS TO DRIVE GROWTH ACCELERATION AHEAD

时间：2017年08月30日 12:14:27 中财网

　　Water conservancy water intelligent system was up 16% YoY while otherbusiness （environment governance, etc.） were up 57% YoY.