Main points of investment:
1. Event
The company announced that the date of granting restricted shares to incentive targets is December 15, 2016, and 20.292525 million restricted shares are awarded to 147eligible incentive targets.
two。 Our analysis and judgment (1) complete the award of equity incentives to promote the sustained growth of the company's performance
A total of 147people were awarded restricted shares, and the number of restricted shares granted was 20.292525 million shares. The award price is 5.33 yuan per share.
This equity incentive requires the company to take the average net profit from 2013 to 2015 as the base, and the net profit growth rate from 2016 to 2018 to be no less than 30%, 40% and 50%. We believe that this equity incentive will stimulate the enthusiasm of the management team, stabilize and attract core business (technical) backbones and other core personnel, and effectively combine the interests of shareholders, the company's interests and the personal interests of operators. to promote the sustained growth of the company's performance.
In addition, after listing, the company adopts the method of epitaxial mergers and acquisitions, in addition to the traditional main oil and gas field automation business, it now has the ability of oilfield directional well and horizontal well equipment manufacturing and service, oilfield environmental protection, smart granary, smart water, smart city and other services, forming the three main industries of automation, oil and gas services and intelligent industry.
The performance of the company's three major business sectors continues to improve, while affected by the new performance of the new merger and acquisition company Sanda, the company's annual performance will achieve rapid growth.
(2) horizontally expand into "wisdom +" businesses such as wisdom granaries
According to the characteristics of the company's RTU products suitable for unattended environment, the company actively develops smart grain depots, smart water and other application fields through epitaxial mergers and acquisitions, including: (1) the company successfully entered the field of smart grain depots through the acquisition of part of the equity of Zhejiang Qiushi Jiahe Information Technology Co., Ltd. and Zhengzhou Xinsheng Electronic Technology Co., Ltd. In February 2016, the company received the bid winning notice of the policy grain purchase one-card system project of China National Grain Reserve Corporation. This marks that the company has taken an important step in the field of smart grain depots. (2) in 2015, the company successfully won the bid for the South-to-North Water transfer-Shengfang Water purification Plant and piping network engineering automatic control system, marking a breakthrough in the company's automation business in the water industry. In addition, the company acquired a 100% stake in Hangzhou Bluebird Electronics to enter the smart city industry. Jade Bird electronic business scope for intelligent systems, intelligent buildings, intelligent weak electricity, intelligent security system research and development and sales.
We believe that the company has the core technology of the automation industry, industrial-grade RTU products have great advantages, the future horizontal expansion to the wisdom granary and wisdom water has great potential for development, will be expected to become a new growth point of the company's performance.
(3) Oil and gas services: the acquisition of Sanda New cut into the oil field environmental protection, improve the oil service industry chain
Through the integration of domestic and foreign advanced technology and resources, the company carries out environmental protection-related businesses such as oil and gas field surface production and construction projects, process and equipment manufacturing, drilling and completion and fracturing integrated services, natural gas purification treatment and oil field, natural gas purification treatment and oil field water treatment.
In terms of oil and gas services, the company has acquired a 100% stake in Zetian Shenghai and entered the field of technical services for measurement while drilling in oil fields. Recently, the company is scheduled to increase 400 million yuan, of which 129 million yuan will be used to acquire 52.4% of the equity of Xinjiang Sanda New Technology Co., Ltd., cutting into the oil field environmental protection sector.
The company previously provided RTU and other automation products in Xinjiang and other places, with more customer resources; Zetian Shenghai and Sanda Xin will form a strong business complementary relationship with the company's traditional oilfield automation business, among which Sanda new commitment 2016-2017 performance not less than 25.3 million, 28 million, Zetian Shenghai commitment 2015-2017 performance not less than 28 million, 33 million, 37 million, will help the company to achieve rapid growth.
(IV) Automation business: the main business benefits from the improvement of domestic oil field automation and equipment import substitution.
As a provider of innovative products and industry wisdom solutions in the field of automation, the company provides customers with DCS, modular RTU, integrated RTU, extended Imax O, sensors and instruments and other automation products sales, competitive industry solutions and technical services in the fields of oil and gas, chemical industry, water, intelligent manufacturing and so on.
At present, China has more than 300,000 oil, gas and water wells, and its digitization process is slow, and the overall digitization level is less than 30%. Changqing and Xinjiang oilfields with the highest degree of wellhead digitization are only about 50% and 20% respectively, far less than the average level of 65% in Europe and the United States. According to Petrochina Company Limited's plan, the digital transformation of 70% oil and 100% gas wells should be completed in 2015, but in fact, the corresponding progress is far from up to standard, and the digital construction of oil and gas wells is expected to be accelerated in the future. China's oil and gas field automation permeability still has a lot of room to improve, the company's RTU production capacity expansion has a lot of market space.
The company's RTU products and oilfield automation solutions have a market share of more than 50% in the domestic three-barrel oil system, and have a good market reputation. In the past, most of the RTU products and overall solutions in the three-barrel oil system were made by foreign manufacturers. In recent years, the company's RTU products have gradually entered the three-barrel oil system, and have passed the oil field operation inspection for a long time, with high quality assurance. With the gradual deepening of the process of domestic substitution, the company's products are expected to gain a larger market share.
3. Investment suggestion
We judge that the company's RTU equipment and services will maintain steady growth in the next two years, and the smart granary, urban and environmental protection businesses are expected to exceed expectations. The seasonal factor of the company's performance is very strong, and the performance is highly concentrated in the fourth quarter.
It is estimated that the EPS of the company's preparation for the test from 2016 to 2018 is 0.16, 0.23 and 0.31 yuan respectively, and the PE of the preparation for the test is twice as much as that of 57-41-30. Based on the traditional main business of RTU in the oil field, the company will enter the smart industries such as environmental protection and smart granary and smart city, and will benefit from the intelligent industry, Internet of things, environmental protection theme, and the performance has the potential to upgrade and maintain the "recommended" rating.
Risk hint: oil price hovers around the risk of traditional business downturn, extension development, wisdom industry expansion is lower than expected risk.
