Main points of investment:
Main high-end equipment + energy saving and environmental protection. Based on the main business of structural parts, the company acquires Youzhi Technology, Jiechi Technology, Shanghai Apani, layout of exhaust gas flow monitoring, circuit board back market, high voltage electrode boiler field. In the future, the parent company is located in equipment and develops in the direction of automation; subsidiaries do energy-saving and environmental protection value-added services, operation and maintenance and design. Relevant enterprises have performance commitments, corresponding to the current market value is cheap, at the same time the industry is in a period of policy transformation, product substitution demand space is huge, significant growth, long-term optimistic.
Youzhi technology, exhaust gas flow monitoring platform. As the measurement of exhaust gas flow has been inaccurate, the Ministry of Environmental Protection issued a standard calculation method to improve the accuracy. The matrix multi-point exhaust gas flow detection equipment produced by the company has obvious advantages over traditional technology and can be replaced by products. at present, it has won the policy support of many provinces and cities. The demand for testing equipment for a thermal power unit is 2.5 million, with a total market size of 20 billion. At present, the company's cumulative replacement accounts for less than 4%, which has a large space for development. The former major shareholder promised a net profit of 58 million in 2016.
Jiechi technology, circuit board waste after the market. Focusing on the market treatment of circuit board etching waste liquid, using ionic membrane extraction copper technology instead of traditional waste liquid treatment technology, 100% recovery of etching solution can be achieved and copper production can be increased at the same time. Jiechi Technology adopts the same circuit board enterprise sharing mode to contract etching liquid recovery. After waste liquid treatment, Jiechi first charges a certain cost, and then the profit is shared with the circuit board factory, according to the profit of one million per etching line. At present, the scale of the national operation and maintenance market is 20 billion of profits. Assuming a single line investment of 2 million, the market size of recycling equipment is up to 40 billion. The company promises that the net profit from 2016 to 2018 will not be less than 0.7,1.0 and 130 million.
Shanghai Apani, heating system design. The heating companies mainly use low-valley electricity and high-voltage motor boilers to change coal to electricity, using low electricity prices at night to heat water vapor for all-day heating. Using the EPC model, it is expected to invest 20-3 billion yuan in the next three years to build 200 projects, with a three-month construction cycle, which will be sold to CGN and other heating operators after completion. The net profit from 2016 to 2017 is promised to be no less than 2000 yuan and 30 million yuan.
The parent company will shift to the field of high-end equipment manufacturing and new materials in the future. The future will be dominated by high-end equipment and new silicon carbide materials, including high-voltage motor boilers with Apani as the core, applied to sheet metal structures in power equipment, finance and new energy plates, with relatively stable performance; silicon carbide materials use civil-military integration, research and development of military and aircraft brake discs, the implementation of import substitution, large space.
Profit forecast and investment rating. At present, the stock price has a margin of safety compared with the company's option price and IPO price. From 2015 to 2017, we estimate that the net profit of the company belonging to the listed company is 82 million yuan, 220 million yuan and 322 million yuan respectively, and the corresponding EPS is 0.29,0.63 yuan and 0.93 yuan respectively.
Risk hint. The policy does not live up to expectations and the market risk.
