The company is the leading enterprise in the domestic construction machinery high-end hydraulic parts industry, and is in the forefront of the domestic industry in terms of technical capability integrity, product variety integrity, product quality and reliability. At present, the company's main products are hydraulic crushing hammer (mainly used for excavators) and hydraulic parts (including hydraulic pumps, walking and rotary motors, multi-channel control valves and other products). The company has successfully passed the ISO9001:2008 International quality Management system Certification, EU CE Safety Certification, American equipment Manufacturers Association, Shandong High-tech Enterprise, and the honorary title of "excellent Enterprise for fulfilling Social responsibility".
Convertible bond information: the amount of convertible bond issued by the company is 1 billion, and the debt rating AA-, online issue / old shareholder placement is April 15. The coupon rate is 0.30%, 0.50%, 1.00%, 1.50%, 2.00%, 3.00%, and the redemption price at maturity is 115 yuan (including the last interest). In terms of terms, the transfer share price is 23.96 yuan, the redemption [conversion period, 1530130%], the resale [the last two interest-bearing years, 30gamer 30], and the amendment [survival period, 15gamer 30gamer 85%]. The game terms are market-oriented and well-regulated. According to the calculation of the spot yield of the same rating in the same period as above, the YTM of Eddie convertible bonds is 3.49%, the value of pure debt is 83.89 yuan, the premium rate of pure debt is 19.2% at face value, and the protection of debt bottom is general. Based on the 4.15-day equity price, the conversion parity is 95.78 yuan, and the conversion premium rate is 4.4%.
The company's revenue scale is expanding rapidly. From 2016 to 2020, the company's revenue increased from 400 million yuan to 2.256 billion yuan, the CAGR was 54%; the net profit increased from 80 million yuan to 520 million yuan, the CAGR was 60%, and the profit growth rate was faster than the income. The revenue of 2021Q1-3 is + 32% to 2.12 billion yuan compared with the same period last year, while the net profit is-8.4% to 386 million yuan. Mainly due to the influence of the market environment, the average sales price of the company's crushing hammer products has dropped slightly; at the same time, the prices of major raw materials such as steel have risen; and the company has built a leading technology research and development center in the field of hydraulic products and confirmed the impact of equity incentive fees. From 2017 to 2020, the company maintained a 20% ROE with a higher return.
The company plans to invest in closed system high pressure plunger pump and motor construction project (551 million), electronically controlled multi-way valve construction project for construction machinery (225 million) and supplementary liquidity and supplementary liquidity (224 million). After the full production of project 1, the internal rate of return of the project is expected to be 26.89%, the static investment payback period (including construction period) is 5.85 years, and that of project 2 is expected to be 26.42%, and the static investment payback period (including construction period) is 5.54 years. The rate of return on project investment is higher. After the construction of the fund-raising project, the annual production capacity of 88000 sets of closed system high-pressure plunger pumps and motors and 35000 sets of electronically controlled multi-way valves can be realized, which will expand the company's business scale and help the company to achieve long-term sustainable development by expanding new business areas. and improve the company's core competitiveness and promote business performance.
Risk tips: raw material price fluctuations lead to a decline in profitability; terminal demand is lower than expected; industry competition intensifies; new business development falls short of expectations