"Aluminum processing" + "Great Health" double main business development strategy, the company drove into the fast lane of development. Aluminum foil processing business relies on the upgrading of product structure and the deepening of the industrial chain to successfully achieve performance reversal; through the acquisition of Langmai shares and a series of investment layout into the field of health, Great Health will become the company's new pillar industry.
The traditional aluminum industry has been structurally upgraded and its performance has been reversed. The company has two production bases in Changshu and Baotou. Changshu headquarters mainly focuses on the middle and high-end aluminum products market by relying on the steady R & D team and industry-leading scientific research capability, and the Baotou branch makes full use of the rich resources and energy advantages of the central and western regions. Focus on the basic aluminum products market. After entering the automobile industry, the company has successfully upgraded its products and improved its profitability. The merger and acquisition of Shandong Xinheyuan is also an important measure for the company to extend downstream of aluminum processing.
Medical cleanliness, medical devices, medical services in three major directions of the layout of large health business. Longmai shares, which the company acquired in 2015, is the leading company in the cleaning industry of domestic pharmaceutical companies, with a commitment of 87.9 million yuan in 2016, which is the main source of performance contribution to the company's major health business; with equity participation in Youshi Medical, many of the company's orthopedic equipment products are expected to receive FDA certification at the end of the year; in addition, the company is also paying attention to investment opportunities in medical services such as specialist hospitals.
Cover for the first time, giving a "highly recommended" rating. We estimate that the EPS of the company from 2016 to 2018 is 0.26 PE 0.33 PE 0.42 yuan, corresponding to 2016 36 times. After establishing the "aluminum processing" + "big health" development strategy, the company has implemented a series of mergers and acquisitions and related business layout, reflecting a strong will for transformation and execution. We are optimistic that the company will continue to deepen the business layout related to big health through extension and other means in the future. The three-year fixed increase completed in April this year provides sufficient cash support for the company, and the fixed price increase of 7.88 yuan per share also constitutes a strong safety margin for the stock price. We give the company 50 times PE in 2016, with a target price of 13 yuan, which is highly recommended.
