Main points of investment:
Event: the company plans to add no more than 64546648 shares (including 64546648 shares). Among them, Mr. Huang Wenle contributed 256.0268 million yuan to subscribe for 35460775 shares, Mr. Huang Wenxi contributed 180 million yuan to subscribe for 24930748 shares, and Shanghai Xingfu Venture Capital Management Center (Limited Partnership) contributed 30 million yuan to subscribe for 4155125 shares. The issue price is 7.22 yuan per share.
Cultivate new profit growth points and enhance profitability. The total amount of funds to be raised will not exceed 466.0268 million yuan, which will be mainly invested in energy-saving, environmental protection, high-performance aluminum alloy formwork production and construction projects.
Make effective use of existing production capacity and improve the added value of products. This fund-raising project is organically combined with the previous project. The previous investment of 40,000 tons of aluminum profiles expansion project has been completed, according to the production capacity of this project is estimated to be able to digest the company's production capacity of 10,000 tons of aluminum profiles each year, and turn it into high value-added, profitable aluminum alloy building formwork products. The construction period of the project is one year, and the design capacity is reached one after another in three years. It reaches 50% of the design capacity in the first year, 80% in the second year, and all in the third year. After completion, it can achieve an annual production capacity of 400000 square meters of energy-saving, environmental protection, high-performance aluminum alloy building formwork. After the project reaches production, the average annual operating income is 520 million yuan, the net profit is 89.7777 million yuan, the after-tax financial internal rate of return is 24.10%, and the payback period of after-tax investment is 5.51 years, with good economic benefits.
Profit forecast and rating. The increased funds will be used to invest in the annual production and construction project of 400000 square meters of energy-saving, environmental protection and high-performance aluminum alloy building formwork, which has a very high market value and can digest 10,000 tons of aluminum profiles in the previous project every year, bringing synergy benefits for the company. We estimate that the diluted EPS for 2015-17 will be RMB0.09,0.16 and RMB0.23 per share respectively (the total share capital is the post-conversion share capital and assumes the impact of the successful fixed increase on the equity). Give the company a price-to-earnings ratio of 78 times 2016, corresponding to the target price of 12.5 yuan, buy rating.
Risk hint. Downstream demand is insufficient, aluminum prices continue to fall, the increase will be rejected, the risk of mergers and acquisitions.
