New services will be added to promote intelligent transformation.

The company announced on August 27 that the non-public offering was approved by the Development and Review Commission, raising an additional 1.49 billion yuan to invest in the intelligent printing equipment production line construction project and intelligent printing equipment research and development project. The construction project of intelligent printing equipment production line is planned to raise 1.158 billion yuan. In terms of intelligence, the company has invested a large amount in the past two years, mainly reflected in R & D expenses. According to the semi-annual report, the R & D expenditure in the first half of the year was 43.8577 million, an increase of 40.84% over the same period last year, mainly for the R & D expenditure of German research centers.

Keep traditional business sound and actively expand new business

The company will continue to carry out packaging and printing outsourcing business, while actively developing new business. In overseas markets, after the acquisition of Heidelberg post-press assets and technology, the company has improved its product technology and expanded overseas sales channels, which is expected to be further improved in overseas markets. In terms of gravure press business, according to the announcement, the company signed a technical license agreement on R983 gravure press with Serudi of Italy at the beginning of last year, and produced the first gravure press this year, which has a price advantage compared with imported products.

Cloud printing business is progressing smoothly and has a broad prospect.

Cloud printing business, at present, the initial results. After more than half a year of online and offline debugging, cloud printing basically landed after Rong Jianhao moved to the new factory in April 2015. After nearly two years of business development and market promotion, cloud printing business continues to grow steadily, with a total sales revenue of 30.05 million yuan in the first half of 2016, an increase of 41.95% over the same period last year.

Investment advice: buy-An investment rating, 6-month target price of 25 yuan. We estimate that the net profit from 2016 to 2018 is 186 million yuan, 217 million yuan and 265 million yuan respectively, and the corresponding EPS is 0.55,0.64 yuan and 0.78 yuan respectively. The prospect of intelligent printing equipment is promising; to maintain the Buy-An investment rating, the 6-month target price is 25 yuan.