Subway, tunnel ventilation system leader, actively develop nuclear power ventilation:
The company is a leading enterprise in the field of ventilation equipment and systems, and its main products are used in subway, tunnel, nuclear power and other fields. The company has successfully entered many domestic and foreign subway projects, such as Beijing Metro, Shanghai Metro, Shenzhen Metro, Nanjing Metro, Hangzhou Metro, Singapore Metro and so on. At the same time, the company's main control room nuclear-grade centrifugal fan successfully won the bid for Zhejiang Sanmen Nuclear Power Station and Shandong Haiyang Nuclear Power Station Nuclear Island Project, and the industry space is gradually opening up.
Acquisition of red technology and medium-strength technology, layout of military equipment:
The company issued a major asset restructuring plan, which intends to buy 100% of the shares in Hongxiang Technology and Zhongqiang Technology for 2.214 billion yuan, of which the issued shares are more than 80% of the total consideration, and the issued share price is 24.45 yuan per share. At the same time, the total amount of funds raised does not exceed 1.017 billion yuan, 60% of which is subscribed by the chairman and 40% by other shareholders. Hongxiang Technology promises that the net profit from 2016 to 2019 will not be less than 50 million yuan, 75 million yuan, 93.75 million yuan and 117.2 million yuan. Zhongqiang Science and Technology has promised that the net profit from 2016 to 2020 will not be less than 35 million yuan, 70 million yuan, 94.5 million yuan, 127.57 million yuan and 172.23 million yuan.
The qualification of the military industry is excellent, and the synergy effect is remarkable:
Golden Shield's ventilation products are widely used in warships and large military bunkers. The infrared and ultraviolet imaging technology owned by Red Phase Technology and the stealth camouflage technology owned by Zhongqiang Technology are mutually exclusive in attribute, and the technological complementarity of "Spear" and "Shield" is expected to accelerate the technological upgrading of the two companies. The downstream customers of Hongxiang technology are mainly electric power enterprises and national defense scientific research institutes, with high customer stickiness and opening up emerging markets such as security and hunting. The stealth camouflage and camouflage of Zhongqiang science and technology are widely used in army equipment, which are consumables, and the military has a large daily demand. At the same time, it is actively developing stealth camouflage markets such as naval equipment and air force equipment. At present, the threshold for entry into the stealth camouflage industry is relatively high, and the advantages of medium and strong science and technology are obvious. recently, the products under research are expected to complete project identification and trial assembly in 2017, which will fill the gap in the army without special stealth camouflage, bringing great military and economic benefits.
Valuation and rating:
We estimate that the net profit of the company's ventilation equipment industry from 17 to 19 years is 80 million yuan, 100 million yuan and 120 million yuan respectively, and the corresponding EPS is 0.50,0.63 yuan and 0.75 yuan respectively. It is estimated that the net profits of the two military companies in 17-19 years are 170 million yuan, 220 million yuan and 290 million yuan respectively. Assuming that the equity is diluted to 260 million shares at the beginning of 18 years, the EPS in 17-19 years is 0.50,1.23,1.58 yuan respectively. Coverage for the first time, with a "buy" rating.
Risk Tips:
The risk that the acquisition will not be completed; the risk that the performance of the military target falls short of expectations.