The company is a banner of the electronic equipment industry under China Electronic Information Group (CEC). Recently, driven by the acceleration of state-owned enterprise reform, CEC asset securitization, management adjustment and other factors, accelerating the pace of high-quality asset integration from the CEC group level is accelerating. At present, CEC Group has strong profitability and excellent quality of electronic equipment and military assets, and the company is the best integration platform for electronic equipment and high-quality military assets, and there is a lot of room for asset integration in the future. in addition, electronic equipment represented by the robot industry is also expected to become the starting point of the existing main industry. At this stage, we believe that the company is still at a low level of market expectations, while the major shareholder CLP Panda asset injection can be traced, new expectations are gradually taking shape. It is estimated that the company's EPS for 16-18 years will be 0.16,0.17,0.19 yuan. Considering the company's position as the core platform of high-quality military communications electronics and equipment assets under CEC Group, the company can inject large space into high-quality assets and give it a "highly recommended-A" rating for the first time, with a 12-month target price of 22-27 yuan.

The goal of asset securitization is clear, the management is adjusted, and the asset restructuring of China Electronic Information Group (CEC) is accelerated. China Electronics has been committed to promoting the optimal allocation of its assets, restructuring and mergers. At the two sessions this year, Liu Liehong, general manager of the group, made it clear:

"China Electronics will practice the reform of state-owned enterprises from the perspective of introducing mixed ownership of strategic investors, employee stock ownership and asset securitization. CEC plans to increase the overall asset securitization rate from about 55% to about 80%. In particular, the current military asset securitization rate of CEC is relatively low, less than 10% of the overall military assets, much lower than the securitization level of other assets of the group, and will increase significantly in the future." At the same time, the management of the board of directors of China Electric Power Panda has been greatly changed recently, and the younger leadership team is expected to speed up the overall asset integration of the group. In March this year, two listed companies, Great Wall computer and Great Wall Information, completed their merger and restructuring and injected Zhongyuan Electronics, a high-quality military industrial asset in the group, which has set a successful example for the asset restructuring of other listed companies of China Electronics.

CLP Panda assets are of high quality, and the company is expected to become a military communications electronics and equipment integration platform under CEC. The four high-quality military main bodies of CLP Panda, Panda Handa Technology, Krida Electronic equipment, Changjiang Electronics and Sanle Electronics, are the leading enterprises in China's military communications, electronic countermeasures, military radar and military vacuum electronics, respectively, with strong profitability. As the best carrier of CLP Panda's high-quality military assets, Nanjing Panda is expected to become an integrated platform for CEC's electronic equipment and military high-quality assets.

The electronic equipment represented by robots is the starting point of the existing main industry. The company is committed to creating a domestic first-class large-scale electronic equipment listed companies, is one of the few domestic manufacturers with display panels, glass substrates and other large-scale electronic equipment production line manufacturing capacity. Aiming at the blue ocean of industrial robots, the company has formed the R & D production capacity of industrial chains such as robot complete machines, core components, overall integration, system software, etc., and has set up robot R & D centers in Jiangsu, Shanghai, Japan and other places. At present, the "robot density" in China is only 10% of that in developed countries, and the future market is huge. It is estimated that by 2020, China's industrial robot market will reach 200 billion yuan. With reference to Foxconn's "million Robot Project" to launch electronic manufacturing, the company, backed by CEC, is the only supplier of industrial robots in large groups, and can fully enjoy the demand for industrial robots in CEC Group in electronics and electrical appliances manufacturing, and is optimistic about 10 billion yuan of internal market space.

There are signs of asset injection, and new expectations are gradually taking shape, covering the "highly recommended-A" rating for the first time, with a 12-month target price of 22-27 yuan. At this stage, we believe that the company is still at a low level of market expectations, while the injection of CLP Panda assets can be traced, and new expectations are gradually taking shape. It is estimated that the company's EPS for 16-18 years will be 0.16,0.17,0.19 yuan, taking into account the company's position as the core platform of high-quality military communications electronics and equipment assets under the CEC Group, there is more room for injecting high-quality assets, and the "highly recommended-A" rating is given for the first time, with a 12-month target price of 22-27 yuan.

Risk tips: the development of the robot market is unfavorable, and the progress of the group's asset injection is not as expected.