Main points of investment:
Deep ploughing system solutions in the field of industrial motion control. Weihong Co., Ltd. is a high-tech enterprise that provides motion control system solutions for CNC equipment manufacturers. After more than ten years of business and technology accumulation in the field of industrial motion control, the company has mastered first-class technologies such as high-speed and high-precision motion control of complex curved curves, and has formed brands and customer advantages in the fields of engraving, engraving and milling and CNC cutting. It is well-known in the domestic motion control industry.
The growth of control cards and all-in-one machines is stable and the profit level is high. The company provides two kinds of hardware platform products: control card and integrated machine equipped with open motion control software. The income growth of the two parts is stable, and the gross profit margin of the control card and the all-in-one machine is maintained at a high level of about 84% and 58% respectively. Because the all-in-one machine integrates CPU motherboard, display and other components on the basis of the control card, it is easy for customers to use, and the proportion of revenue has been increasing since its inception in 2011. In the future, with the expansion of all-in-one production by the fund-raising project, the company's income and market position will be further improved. Due to the slightly lower gross profit margin of the all-in-one machine, the company's future profit growth is expected to be lower than that of revenue growth.
The downstream of the boom drives the demand for new automation equipment. From the perspective of application field, the company provides engraving and milling control system, cutting control system, manipulator control system, which can be used in engraving machine, engraving and milling machine, machining center, water jet cutting machine, laser cutting machine, plasma cutting machine, flame cutting machine, glass processing machine, industrial manipulator and other equipment. The company's main final downstream customers come from furniture, decoration, moulds, touch screens and other downstream industries. Under the background of the improvement of residents' income, the elimination of real estate inventory, the development of high-end manufacturing, and the continuous upgrading of 3C products, the downstream of the company will continue to maintain a good prosperity.
Fundraising project. The funds raised will be used for the upgrading and expansion of integrated controllers, the construction of R & D centers, the construction of national marketing network, the industrialization of servo drives and supplementary working capital, and other projects, with about 210 million of funds to be raised. This investment project will (1) increase the annual production capacity of 11000 sets of all-in-one machines in the existing 10694 sets of all-in-one machines, (2) realize the annual production capacity of 100000 sets of servo drives, and expand other related fields of the motion control industry. (3) set up a national marketing network to improve sales scale.
The number of new shares issued by the company is 11.82 million shares, and the shares publicly sold by the shareholders of the company are 2.39 million shares. The total share capital after the issue is 56.82 million shares, the total amount of funds raised is 237 million yuan, the net capital raised is expected to be 210 million yuan, and the issue price is 20.08 yuan per share. The EPS of the diluted computing company from 2016 to 2018 is 1.00,1.18,1.35 yuan respectively. According to the comparable company's 16-year PE valuation, we are based on the company's 2016 35-40x PE, and the reasonable value range should be 35-40 yuan. It is recommended to apply.
Risk hint: the downstream development slows down, the company's performance fluctuates, and the fund-raising projects do not meet expectations.
