1. With the completion of the reorganization, the company's production capacity has increased significantly, and the product structure has become more optimized.
After the completion of the restructuring, the company will hold 100% of the shares of Shenaxe Minbao, the largest shareholder of Xinnanling Minbao is still Nanling Group, and the actual controller is still Hunan SASAC.
God axe civilian explosion is the most powerful civil explosion production enterprise in China, and the production and sales of detonators and cable initiators rank among the top three in the country. However, Nanling civil explosion is relatively weak in the production of initiation equipment. After the completion of the reorganization, the company's total explosive production capacity increased to 144000 tons, accounting for 76% of the province's total. The detonating cord is 250 million meters and the detonator is 250 million. In addition to the substantial increase in explosive production capacity, the production strength of Nanling civil explosive initiation equipment has been greatly enhanced, and the product structure has become more optimized.
The production base of God axe and people's explosive axe is located in Yongzhou, Yueyang, Lianyuan, Shaoyang and Chongqing, Hunan. It has a superior geographical position of connecting the east and the west, connecting the north and the south, and radiating the east and west. Help the company to further develop and improve the market share outside the province. At the same time, the company plans to transfer the production capacity of 15000 tons of industrial explosives to Hami Xuefeng Sanling Civil blasting equipment Co., Ltd., so as to enter the Xinjiang region with the most strong demand for civil explosion. the company will develop from a regional civil explosive enterprise to an industry leader with national influence.
two。 Cooperate with Orekai to target the high-end detonating equipment market.
The company cooperates with Auraikai to set up Nanling Aurekai Civil blasting equipment Co., Ltd. (49%) to carry out the R & D and production of detonating equipment. The production capacity of the joint venture company is 150 million meters of detonators and 40 million detonators. It is expected to be put into production by the end of this year, with a unit price of 6.50 yuan per hair and a conservative estimate of 40% net profit. The joint venture company can bring 127 million yuan of equity income to the company every year. The net profit is about 51 million yuan, which has become another important source of profit.
3. Join hands with central enterprises to open up the space for explosive growth.
In June 2012, Hunan Xintiandi Investment holding Group, the actual controller of the company, signed a framework agreement with China Railway material Group Co., Ltd., and launched strategic cooperation. The two sides will carry out in-depth cooperation in the areas of civil explosive supply and engineering blasting services. In 2006, the company established a joint venture with China Railway material Group to give priority to the supply of industrial explosives to China Railway Civil explosive. This framework agreement further extends the cooperation between the two sides to the field of blasting.
In addition to China Railway Construction Corporation, the company also carries out regional blasting business cooperation with China Gold Group and other large mining enterprises, and will jointly develop the blasting business market of mines under China Gold in Hunan Province. The cooperation with large central enterprises provides a broad market space for the integrated development of the company, and the blasting business is expected to achieve great-leap-forward development in the next few years.
4. Profit forecast.
We estimate that the EPS of the original Nanling Civil explosion from 2012 to 2014 is 0.26,0.32,0.35 yuan respectively. Calculated by the issuance of 107 million additional shares, the total share capital after the completion of the integration is 371 million, and the EPS of Xinnanling Minbao from 2012 to 2014 is expected to be 0.52,0.56,0.60 yuan respectively. The corresponding PE is 21x, 20x and 18x, respectively. Considering that our profit forecast for Shenax Min Bang is conservative, and after the completion of the integration, the company will form a complete production-circulation-blasting industrial chain, blasting business development in Xinjiang and large-scale integrated service platform for central enterprises such as China Railway Materials, it is expected to help the company achieve great-leap-forward development of blasting business and maintain the recommended rating.
5. Risk tips: 1. The risk that the macroeconomic downturn will continue and the demand for explosives will continue to shrink.
two。 The risk of a safety accident.
3. The risk of a sharp rise in the price of raw materials.