Peace viewpoint:
Set up a subsidiary, Jinming Industry 4.0 another move: Shenzhen Wisdom Jinming Technology Co., Ltd., a wholly-owned subsidiary established this time, is mainly engaged in software design and development, cloud platform technology development, automation control system development and integration, health information management and consulting services, etc., to make another move for the company's "Jinming Industry 4.0" strategy. The company's non-public offering was held on December 21, 2016. this non-public offering plans to issue no more than 50 million shares and raise no more than 506 million yuan. To build a special multi-functional film factory, agricultural ecological membrane intelligent equipment and cloud big data intelligent service platform and other three major projects, it is expected to contribute a total net profit of more than 180 million per year. The newly established subsidiary will serve as a carrier for the development of high and new technologies such as industrial manufacturing intelligent technology and cloud technology, which will help to quickly promote the company's targeted additional issuance projects.
The layout of rehabilitation robots has a bright future: "Health Jinming" is another important long-term strategy of the company. In 2015, the company jointly established a rehabilitation robot research center with Tsinghua University to lay out rehabilitation robots. According to the Technavio report, the global market for rehabilitation robots is worth US $577 million in 2015 and is expected to grow to US $1.73 billion by 2020, with a compound growth rate of 24.51%. In China, there are more than 86 million disabled people, nearly 200 million elderly people, and the dependency ratio of the elderly population has reached 14.33%, exceeding the global average. There will be a huge demand for rehabilitation robots and other products in the future.
Investment suggestion: the newly established subsidiary will help to quickly promote the company's private placement project. The macroeconomic and downstream industries are gradually picking up, and the growing high-end film market will bring new opportunities for the development of the company. It is estimated that the company's EPS in 2016, 2017 and 2018 will be 0.18,0.31 and 0.42 yuan respectively, with a price-to-earnings ratio of 94 times, 55 times and 40 times respectively, maintaining a "recommended" rating.
Risk tips: (1) macroeconomic recession, insufficient downstream demand; (2) the promotion of the grand health strategy is not as expected; (3) the operation of newly established subsidiaries is not good.