Main points of investment:
The acquisition of overseas industrial cleaning systems and surface treatment business has greatly improved the company's profitability. The company buys all the equity assets and non-equity assets related to the industrial cleaning system and surface treatment business of the Duer Group by paying cash, and the value of the underlying assets is 738 million yuan, which can be acquired through the shareholders' meeting. After the completion of the transaction, the listed company will hold 85% of the underlying assets. Duer Group is the market leader in the industrial cleaning system and surface treatment business, with business income of 1.425 billion yuan, 1.5 billion yuan and 640 million yuan in 2014, 2015 and January-June 2016, and 82.95 million yuan, 94.88 million yuan and 30 million yuan in EBIT respectively. Before the acquisition, the company's net profit in 2015 and January-September 2016 was 11 million yuan and 1.43 million yuan respectively, and its profitability will be greatly improved.
In the next 3 years, the company's main performance growth is the domestic business of industrial cleaning equipment and services. Considering that more than 60% of Duer's cleaning business is cleaned by the automobile industry and will perform in the Chinese market after acquisition by listed companies, the main growth in the company's performance in 16-18 will come from cleaning equipment and services in the domestic automobile industry. The domestic automobile industry has achieved a net profit of 91 billion yuan in 15 years, and it is expected that the industry profit will increase by 8% and 3% respectively in 17-18 years. Assuming that the automobile raw materials and cleaning equipment / net profit are consistent with those of previous years, the industrial cleaning equipment and services account for 10%. At present, Dur Group has cooperated with many well-known automobile manufacturers and has launched business in 7 regions of the country, with a market share of about 10%. China's market share is expected to be 15% and 20% respectively in 17-18, so the company's industrial cleaning and surface treatment business is expected to achieve 1.573 billion, 1.991 billion and 2.398 billion revenue in 16-18.
The three-dimensional logistics warehouse is developing rapidly and its performance is in line with expectations. The company's digital chemical plant business has developed rapidly in the past 15 years and 16 years, contributing 80 million and 4600 million revenue to the company in 15 years and the first half of 16 years, respectively. In March this year, the company signed a contract with Qingdao soft Control for Hefei Wanli tire, with an amount of 108 million yuan. as of the three quarters, the total contract price received was 49.25 million yuan. In August this year, the company signed a contract with Anhui Jiatong for Anhui Jiatong semi-steel project, with an amount of 100 million yuan and received a price of 30 million yuan.
The corridor project has completed the debt divestiture, bottomed out in 16 years, covered for the first time, and bought rating. Listed companies have spun off corridor-related debts to controlling shareholders to improve cash flow. It is estimated that the company's 16-year net profit is 3 million yuan, the performance is at the bottom, 17-18 net profit is 164 million yuan and 230 million yuan, EPS is 0.61 yuan / 0.85 yuan, corresponding to PE is 29X/21X.
Analogy with German industry 4.0 related to the machinery sector companies, the 17-year average PE is 40X, while Ecoclean is the A-share industrial service scarce target, and has global sales and industrial service experience, domestic listed companies are optimistic about their expansion in the Chinese market after acquisition, conservative estimates give the industry average valuation, that is, the 17-year PE is 40X, the corresponding market capitalization is 6.56 billion, and the corresponding stock price is 24.3 yuan There is room for 30% of the current stock price, covered for the first time, buy rating.
