Ruiling shares: the leader of the domestic welding and cutting equipment industry, actively transforming to the field of welding robots. Ruiling Co., Ltd. is a leading manufacturer of inverter welding and cutting equipment in China, and its leading products are inverter welding equipment, welding automation products, welding accessories and protective equipment, which has the first market share in China. It is actively transforming into the field of welding robot.
In order to seize the historical opportunity, speed up the layout of welding robot field. The company has always adopted a relatively sound development idea, and now plans to speed up the layout of welding robot business on the basis of maintaining the stable development of the original business. 1) mergers and acquisitions shorten the development path, giving priority to welding robot business; 2) cooperate with the world's leading enterprises in the field of welding robots or welding automation equipment; 3) the company itself accumulates process technology in the welding field.
It will fully benefit from the industrial integration of the welding and cutting industry, and the traditional welding and cutting business can still grow steadily. At present, the competition pattern of inverter welding and cutting equipment industry is relatively scattered, as the industry enters a period of stable growth, the industry will enter a period of integration. As the leader of inverter welding and cutting equipment, the company will benefit from the integration of the industry and this kind of integration has a lower investment risk, giving priority to integrating regional leaders with channel advantages or welding and cutting equipment manufacturers with technical advantages.
The equity incentive scheme shows confidence in growth and performance growth may exceed expectations. The equity incentive plan requires that the growth rate of net profit in 2015 should not be less than 15%, while in the context of weak endogenous growth in the economic downturn, the growth may be guaranteed by extension, while the company's revenue and profit volume is small, and the performance growth may exceed expectations.
Investment suggestion: the company will benefit from the consolidation of the welding and cutting industry, the traditional welding and cutting equipment business will grow steadily, and the layout of the welding robot field will be significantly accelerated, boosting the valuation level. We expect the company's revenue from 2015 to 2017 to be 940 million, 1.317 billion and 1.475 billion respectively, an increase of 38%, 40% and 12% year-on-year, and net profit of 137 million, 181 million and 230 million respectively. Given a "buy" rating, the first target price is 45 yuan, which corresponds to 78 times Pmax E in 2015.
Risk tips: robot layout is lower than expected; sales of welding and cutting equipment are lower than expected; industrial consolidation is lower than expected, putting pressure on valuation and performance.
