Events:
The company issued a pre-plan for a non-public offering of shares, with a total amount of no more than 947.7791 million yuan to be used for the upgrading and expansion of five rail transit core businesses and supplementary working capital.
Main points of investment:
Strengthen the R & D and construction of the core business of rail transit
The fundraising project includes 1. 5%. Catenary design and installation and commissioning capacity upgrade and key parts production expansion project, implemented by subsidiary RPS of Germany 2. Rail transit intelligent solid insulation switchgear technology introduction and industrialization project 3. Urban rail transit DC traction power supply intelligent control equipment and system upgrade industrialization project 4. Railway power supply dispatching command management system business platform R & D project 5. Rail transit traction power supply key equipment technology research and development platform construction project 6. Replenish liquidity. The total investment is about 1 billion yuan, and the company will invest in advance with its own funds or self-raised funds according to the progress of the project.
German subsidiary RPS has good business prospects and is expected to give full play to business cooperation. German RPS inherits all the business experience, core competitive advantages and brand influence of German Baofu Railway in catenary business and power supply system business, and has rich experience in established projects. According to the catenary investment plan announced by the German Federal Railway, the catenary investment mileage will increase significantly from 183.6 km in 2016 to 723.9 km in 2019, and RPS is expected to fully benefit. In addition to the German market, RPS will gradually open up emerging markets such as Asia in the future, and cooperate with Kaifa Electric to expand the protection and monitoring system of the company's existing rail transit traction power supply system to overseas markets through RPS.
Expand solid insulated switchgear, DC switchgear and other new business
Solid insulating cabinets have the advantages of environmental protection, strong environmental adaptability and low maintenance costs, and have the trend of replacing SF6 gas insulated ring network cabinets. The company intends to introduce German RPS solid insulation switchgear technology to expand the company's product line and cope with the increasing market demand for solid insulation switchgear products in the future. DC switchgear is mainly produced and sold by Tianjin Baofu, which is used in subway power supply system. At present, the business expansion is smooth, and the revenue is expected to increase significantly.
Maintain the recommended rating. From 2016 to 2018, we expect the company to achieve income of 7.71,9.95 and 1.228 billion yuan, net profit of 1.24,1.42 and 184 million yuan, corresponding EPS of 0.46,0.52,0.68 yuan respectively, and corresponding share price PE of 39,34 and 26 times respectively. Considering the acceleration of rail transit construction during the 13th five-year Plan period and the company's continuous expansion of new product lines, we are optimistic about the company's medium-and long-term development prospects and give it a "recommended" rating.
Risk hint
1. Manage risk; 2. Accounts receivable risk; 3. Macro risk