Take a multi-pronged approach to cultivate new performance growth points
We study and judge that the company's future performance growth points mainly come from: overseas markets, new products, new business. 1) in recent years, the company has actively distributed overseas markets and promoted the export of cable products by means of direct export and cooperation with domestic enterprises. at present, its performance has covered more than 30 countries. We expect that the contribution of overseas markets (direct and indirect exports) to the company's cable revenue is expected to reach about 15% by 2020.
2) in the field of high-end products, the company has a competitive advantage in submarine cables, cables for nuclear power stations, UHV overhead lines and many other fields, and related products have accumulated strong supply experience, and are strengthening the R & D of new products such as umbilical cord cable, 500kV high voltage DC submarine cable, locomotive and rolling stock cable, which will help the company expand into ocean engineering, rail transit and other emerging markets. 3) in 2015, the company established Qingdao Han Cable founder Network, a wholly-owned subsidiary by merging Qingdao Han Cable Private Capital, to appropriately open up new business and increase profit sources in finance, Internet and other fields.
Launch employee stock ownership plan to demonstrate confidence in performance
In this period, the employee stock ownership plan plans to raise no more than 400 million yuan to increase the stock holdings by means of purchase in the secondary market. The controlling shareholder undertakes to bear the responsibility of making up the difference for the principal of the holder of the plan.
Give a rating of "increasing holdings"
We expect that in 2016-2018, the company will realize EPS0.13 yuan, 0.15,0.18 yuan under the current equity, corresponding to 35.7,30.0,25.5x Phand E.
Risk hint
Overseas business expansion may not meet expectations; new product development may not meet expectations; industry competition may intensify.
