Events:
The company announced in the evening on December 21 that the CSRC's application for non-public offering of shares was reviewed on the same day, and the application for non-public offering was approved. In this non-public offering, the company intends to issue no more than 5000 million shares to no more than 5 specific investors, with a total amount of no more than 506.1688 million yuan.
Main points:
1. "Intelligent equipment" + "Smart Factory" + "Intelligent Biosphere" to create "Wisdom" in all directions
The non-public offering plan revolves around the company's "smart Jinming" strategy to create "smart Jinming" through "smart equipment", "smart factory" and "smart ecosystem". The "Intelligent equipment" project will develop and produce agro-ecological multi-functional membrane intelligent equipment, improve the structure of domestic agricultural film products, reduce environmental pollution, and have broad market prospects and profit margins. The "Smart Factory" project will realize the digital and intelligent management of the whole process from production order to product departure, data exchange, coordination, resource sharing, production process visualization, real-time and transparent control of production process. The "Smart Biosphere" project pioneered cloud big data technology to provide data sharing, equipment life cycle management, industry data collection, analysis and application services for enterprises in the film production industry, and realized the overall management and sharing of industry-wide data resources for the first time.
two。 The son of the controlling shareholder participated in this increase, demonstrating confidence.
In the company's non-public stock offering plan, Mr. Ma Jiazhen, the son of Mr. Ma Zhenxin, the company's controlling shareholder, intends to subscribe for shares of no less than 100 million yuan and no more than 200 million yuan. The indirect participation of the controlling shareholders provides a guarantee for the landing of this additional investment project as soon as possible, demonstrates the controlling shareholders' firm confidence in the company's "Wisdom Jinming" development strategy, and ensures the sustained, rapid and healthy development of the company in the future.
Conclusion:
Maintain the recommended rating. We estimate that the EPS of the company from 2016 to 2018 is 0.16 PE 0.28pm 0.35 yuan, corresponding to 65 times of the 2017 PE. The company's non-public offering plan was approved, paving the way for the company to further build a "wise Jinming" strategy. At the same time, the controlling shareholders indirectly participate in this increase, demonstrating long-term development confidence. The company has a promising future and maintains a "recommended" rating on the company.
Risk Tip: the schedule of additional investment projects is not as expected.