Main points of investment.
The company disclosed that it jointly contributed 90 million yuan with Wu Shaoshi to establish a joint venture Tianjin Tongda Dali Technology Co., Ltd., of which: Tongda Power contributed 60 million yuan in cash, accounting for 66.67% of the registered capital, and Wu Shaoshi contributed 30 million yuan in cash, accounting for 33.33% of the registered capital.
Within one year of the establishment of the company, Wu Shaoshi has the right to make an additional investment of no more than 10 million yuan. After the establishment of Dali company, it will buy the technology of "artillery multi-function maintenance unit" and "light armored fast vehicle" special operations vehicle with independent commercial operation right of Wang Hongbo, a natural person, for 10 million yuan.
Profit forecast and investment advice: we expect the company's earnings per share from 2014 to 2016 to be 0.01,0.35 and 0.53 yuan respectively, with net profit growth rates of-89%, 4828% and 55%, respectively. The current stock price corresponds to 4414 times, 90 times and 58 times PE in 14-16 years, respectively.
In the context of economic restructuring, the company's stator and rotor core and other traditional industries are facing development bottlenecks, and the transformation to the military industry has become the company's core development strategy in the future. In terms of traditional business, in the context of the warming demand of the downstream wind power industry and the company's own active response to industry changes, we judge that the company's traditional business is expected to gradually recover. In terms of military business, the company may fully open the navy, air force, army and the second Artillery market in the future. the navy and air force market will take radar products as the starting point, and the army and the second Artillery market will take the artillery multi-functional maintenance unit as the starting point. the future development is worth following for a long time. The establishment of Dali binding partnership, preparation for the performance of the company will increase the performance of the company; if the subsequent successful acquisition of Yiwei, is expected to quickly cut into the military radar market, is expected to open a new growth space for performance. We covered for the first time, giving the company an "overweight" rating.
Risk hint: the demand of wind power industry is lower than expected, and the speed of military business expansion is lower than expected.
