Baan Water Research Report: Overseas M & A Re-Acquired Advanced Technology to Build Desalinated Whole Chain

1) 0.1 euros / share price ItN shareholders CoreoAG and Stoll family 967.29 million shares, and plans to November 2016 to 2 euros / share invested 3 million euros to subscribe for 150 Million shares, the acquisition, after the completion of the capital increase it holds 67.65% stake in ItN company; ItN company was established in 2000, the German exchange market in 2006, efficient adsorption technology, nano-ceramic plate UF membrane technology, desalination technology, deep groundwater treatment Technology and wastewater treatment MBR processes and other fields have a total of 18 patents, 69 utility model patents, 47 patents. 2) Borrow 500,000 euros to ItN for daily operating cash flow, € 950,000 to buy Stoll family and SWNBeteiligungs GmbH for 17.7 million euros of debt to ItN, and we think ItN will be more benign operation after accepting the financial integration of the company and it is expected that Become the company's important overseas capital operation platform.

To create a full seawater desalination chain: 1) ItN flat ceramic membrane can be applied to desalination of RO reverse osmosis process to achieve the protection of RO membrane effect, has signed a pilot contract with Saudi Arabia, 2019 is expected to achieve engineering applications; 2) the company July Announcement Acquires 21.6% stake in Swiss Water to acquire its seawater desalination membrane technology (seawater desalination process core) and low temperature and multi-effect seawater desalination technology (MED), combined with the previous acquisition of KWI Company, the company will have the whole desalination technology chain ; 3) It is estimated that desalination of seawater will bring a total volume of 56.5 billion new markets and a maximum operating space of 16.6 billion yuan per year in the next 10 years. In addition, Southeast Asia, the Middle East and other overseas regions will have "going out" opportunities. The company is expected to use ItN and Switzerland Water overseas platform to continuously expand the sea water desalination market, creating an important performance growth point.

Radiation water treatment technology leader, to benefit from the restart of nuclear power: 1) ItN's ceramic ultrafiltration membrane capacity to remove radioactive elements can reach 97%, leading position in the drinking water industry, the Middle East potential for huge applications, the current Saudi Arabia has 11 million euros orders; 2) The Company has recently obtained the CNNC Qualified Supplier Certificate. Except for the condensate water treatment and desalination of nuclear power plants, the Company is expected to tap into the nuclear radioactive water treatment market in the future with obvious opportunities under the background of nuclear power restart.

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