Brief introduction of announcement
The company recently announced that in order to promote the development of the company's leading industry, strive to optimize the industrial layout, expand the stock, expand the increment while comprehensively improving profitability, the company plans to reduce some of its available financial assets for sale in 2016. Among them: no more than 4.11 million shares of Huaying Technology (Group) Co., Ltd. (hereinafter referred to as "Huaying Technology") and no more than 4.5 million shares of Guotai Junan Securities Co., Ltd. (hereinafter referred to as "Guotai Junan"). According to the recent secondary market prices, the company can get a total of about 120 million yuan in cash after the reduction.
Business analysis
First, the model of local state-owned enterprise reform, industry integration and clearing at the same time: the company has operated frequently in the capital market in recent years, and has acquired Shenzhen Yuanlei, Merry Optoelectronics, Zhongnuo Communication and other enterprises. At the same time of M & A, the company has been planning to integrate the similar business of the original listed company with several subsidiaries, and clear the relevant departments with weak hematopoietic function. At the same time, Fujian Electronic Information Group, the actual controller, has also made a layout in all kinds of electronics and chip fields, such as cooperating with Taiwan's United Microelectronics Corp to invest tens of billions of yuan to build a wafer factory (expected to be put into production by the end of 2016). It can be said that the company is the forerunner of "self-clearing" and integrating relevant resources under the background of state-owned enterprise reform.
Second, the issuance of additional shares is carried out at the same time as the reduction of investment assets, and access to funds lays a solid foundation for future development: Furi Electronics announced an additional offering in early 2015, which was approved by the Securities Regulatory Commission at the end of last year and is expected to be completed in the near future. At the same time, the company announces the reduction of relevant investment assets, and if the changes in the scale of additional issuance and the market value of the reduction brought about by fluctuations in the secondary market are not taken into account, the company will receive a total of about 770 million in cash. While greatly reducing the financial expenses, it will lay a solid foundation for the follow-up development of the company, especially the industrial integration and capital operation.
Third, ODM business benefits from the intelligent terminal industry supply test structure adjustment: the company's wholly-owned subsidiary Zhongnuo Communication is a mobile phone ODM enterprise, serving Huawei, Lenovo, Meizu and other enterprises. As the growth of the smart terminal industry slows, there have been doubts about whether Zhono will be able to meet its performance commitments. However, in 2015, a number of enterprises in the smart terminal industry withdrew from the market, and the industry concentration further increased. SinoCom relies on its growing high-quality customers, and its market share is expected to increase significantly. Fulfilling its performance pledge of 120 million yuan in 2016 should be a high probability event.
Profit adjustment
Taking into account the expenses and increased costs caused by the reform of state-owned enterprises in 2015, we adjust the company's net profit forecast for 2015-2017 to 1.18 269 million yuan 2.23 yuan, corresponding to 0.50 yuan 0.50 yuan 0.60 yuan for EPS 0.31 line (dilution has been considered in 2015-2017), corresponding to PE31,19,16 times.
Investment suggestion
As a listed company with a market capitalization of only 3.7 billion and expected to be less than 20 times PE in 2016, its state-owned enterprise reform is clear and its "buy" rating is maintained.