Main points of investment
Event: the company issued an announcement, making it clear: with regard to the equity dispute, the 12 parties in the dispute have reached a settlement with Jiechi Technology, and there is no substitute holding of 6.53% stake in Jiechi Technology. Jiechi Technology is in line with the clear provisions of asset ownership in the restructuring management measures.
Our comments on this are as follows:
Equity disputes have been settled, asset ownership is clear, and hidden worries about restructuring have been eliminated. In January 2016, Baoxin Technology received a letter from a lawyer. The letter said that it accepted the entrustment of 12 people, including Wang Jinbiao, and said that Jiechi Technology did not pay dividends and equity repurchase funds to the disputed party in accordance with the labor contract, equity incentive agreement and other evidence, and asked Jiechi Technology to fulfill its payment obligations as soon as possible. In May 2016, according to the letter of commitment issued by the 12 parties to the dispute and the relevant interviews, the 12 parties to the dispute have reached a settlement with Gecchi Technology. Venter's 6.53% stake in Jiechi Technology does not exist as a surrogate. Jiechi Technology meets the clear provisions on asset ownership in the restructuring management measures.
Jiechi technology: PCB waste liquid online recycling pioneer, 20 billion net profit market space. 1) the waste liquid is recycled online and the BOO treatment mode is innovated. At present, the mainstream waste etching solution is centralized treatment, only the extraction of copper, there is no reuse of the waste liquid. Jiechi Technology reuses PCB etching liquid online, bypassing middlemen by providing equipment and services free of charge. The discharge of waste water is up to the standard, while copper recovery and waste liquid reuse are realized, and the environmental protection plus economy is highlighted. As far as manufacturers are concerned, there is no need to buy etching solution (1200 Murray 1500 yuan / ton), and the economy is greatly improved. 2) cooperate with PCB giant to release the performance quickly. The company's PCB project has installed equipment in Foxconn, South Asia, Golden Elephant and other companies. The gross profit margin of Jiechi Technology is 30%, and the net profit is about 20%. 100% refund of value-added tax on recycled copper obtained by Jiechi technology. 3) the market space is huge: there are 4000 PCB households in the country (according to 5 lines, a total of 20,000 PCB lines), the annual net profit of one line is 1 million, the total net profit is 20 billion. At present, the company is the leader in the industry, with an annual net profit of 2 billion per cent.
Youzhi technology matrix flow monitoring leader to solve the pain point of traffic monitoring. Air environment monitoring is divided into concentration and flow monitoring. The accuracy of flow monitoring is a painful point for the Ministry of Environmental Protection to double the collection of sewage charges and emissions trading. The company started to acquire Youzhi in 13 years. Youzhi's matrix Flowmeter has solved the problem of uncertainty in traditional pitot, and has been vigorously promoted by the General Department of the Ministry of Environmental Protection in the past 14 years. At present, accurate flow monitoring equipment is required to be installed in Guizhou, Ningxia, Liaoning and other places. In the context of the promotion of super-net emissions, the approval of super-net emissions will be an important opportunity for the development of flow equipment!
Investment advice: maintain the overweight rating. Considering the merger and acquisition of Jiechi Technology, we predict that the net profit of Baoxin Technology in 16-17 years will reach 2.2 billion yuan, and the market value of additional issuance will reach 7.2 billion yuan. The company is an absolute leader in the fields of PCB waste liquid circulation, matrix flow monitoring, valley electric heat storage heating and so on. PCB waste liquid recycling market space reached 20 billion net profit, listed capital increase to help Jiechi technology rapid expansion. Various places require the installation of accurate flow monitoring equipment, matrix flow monitoring ushered in the outbreak. Bottom area, continue to strongly recommend!
Risk hint: the progress of restructuring is lower than expected
