The company's main business is the design, manufacture, installation, commissioning and sales of intelligent complete sets of equipment. The company's main product categories include intelligent logistics transportation system, intelligent logistics warehousing system, intelligent three-dimensional parking system, intelligent painting system and so on. About 40% of the company's revenue comes from the automobile and parts industry. In addition, there are many high-quality customers in medicine, e-commerce, new energy, fast consumer goods, beverages, home appliances, household, cold chain, electronics, construction machinery, agriculture, iron and steel non-ferrous, chemical industry, aviation and other fields.
Zibo Finance Bureau gained a controlling stake in the company at a premium of 10%. Yao Buwen and Liang Yansheng, the actual controllers of the company, and Zhonghesheng's three shareholders transferred 8.44% of their shares in the company to Zibo craftsman Tu Hengsong. After the completion of the transfer, Zibo craftsman Tu Hengsong will hold 29.44% of the shares of the company, becoming the largest shareholder of the company, and the actual controller of the company will be changed from Yao Buwen, Yao Changjie and son to Zibo City Finance Bureau. The share transfer price is 12.30 yuan per share, 10.61% higher than the closing price of 11.12 yuan per share announced on August 10.
The market space of domestic automatic logistics equipment has increased to 180 billion yuan. With the development and progress of logistics, China's automatic logistics equipment has been continuously promoted and developed.
From 2012 to 2019, China's automatic logistics equipment market has an average annual compound growth rate of 26.8%, and the market size in 2020 has reached 180 billion yuan.
The company has plenty of orders on hand, and its future performance can be expected. From 2017 to 2020, the advance payment of the company has increased year by year, and the company's income has also risen. As of June 30, 2021, the company's advance collection + contract liabilities is 392 million yuan, a record high, indicating that the company is currently in the hands of sufficient orders. In the first half of 2021, the company signed five new orders with a total value of more than 50 million yuan, with a total amount of more than 610 million yuan, among which the purchase agreement for mass stackers signed with JD.com highlights the company's basic strength in intelligent logistics hardware. and opened up new business areas for the company.
The company will focus on the layout of intelligent manufacturing business. In order to achieve this strategic goal, the company mainly takes three steps: (1) issue convertible bonds, raise 600 million yuan for digital workshop construction project, Shenzhen Dongjie Intelligent Technology Research Institute project and supplement the company's liquidity; (2) integrate internal resources of the enterprise. Integrate the "Smart Factory Division" of Sun Company Shenzhen CIMC Intelligent Technology Co., Ltd. with the Shenzhen subsidiary, strengthen the cooperation in the fields of "information, AI, industrial Internet", and effectively support the company's capacity building in the intelligent factory; (3) with the help of external forces, "OT"
Combined with "IT", the advantages complement each other. By signing a strategic cooperation agreement with Yuanlian Technology Co., Ltd., the two sides will fully integrate their respective advantages in "hardware" and "software", "automation" and "digitization", and create value for their customers. fully tap the pain points of the intelligent manufacturing industry, and carry out all-round strategic cooperation in the combination of information technology and industrial scene applications, industrial big data analysis, enterprise digitization and intelligent upgrading. The company is getting ready for the advent of the era of intelligent manufacturing.
Profit forecast: we predict that the net profits owned by the parent company from 2021 to 2023 will be 133 million yuan, 184 million yuan and 230 million yuan respectively, equivalent to 0.49 yuan, 0.68 yuan and 0.85 yuan EPS respectively. According to the closing price of 10.74 yuan per share on September 10, the corresponding price-to-earnings ratios are 22 times, 16 times and 13 times respectively. We covered it for the first time and gave the company an investment rating of "prudent recommendation".
Risk tips: 1) the downstream boom is declining; 2) accounts receivable are growing too fast.