Key points of investment:
The actual controller plans to join Liquidmetal. Li Yangde, the actual controller of the company, plans to take 18% of Liquidmetal Technology's shares through Liquidmetal Technology Co., Ltd., which he controls, to become the largest shareholder, and plans to continue increasing its holdings to around 46%. The actual controller said that when the time is ripe, fair value will be injected into the listed company.
LQMT is the world's leading bulk amorphous metals company. LQMT is listed on OTCBB in the US. It is the world's top bulk amorphous metal R&D and commercialization enterprise. It has the world's core intellectual property rights related to block amorphous metals, and is also Apple's dependent unit in this regard. Located in California, close to the headquarters of major companies such as Apple, Microsoft, and Google, it has an innate advantage in promotion. In addition, LQMT has cooperated closely with brands such as Vertu and Omega, and has also laid out in many fields of technology, such as medicine, automobiles, golf, aerospace, etc., and has in-depth R&D and potential customers. The term “liquid metal” is that LQMT founded and exclusively uses the LIQUIDMETAL trademark. It is also a global industry standard setter, and its popularity in the market is almost monopolized.
The company has advantages in the development and production of amorphous metals. The company has more than 20 years of experience in R&D, tooling, mechanical preparation, molding and production of new materials, has a complete industrial chain, and has a very high position in the field of metal materials. It has now become a new materials company with strong growth potential. It can integrate top scientific research resources in the field of liquid metals and rapidly industrialize the relevant liquid metal patents of research institutes and institutions. It is currently the only company in the world that can announce its ability to form large blocks of amorphous metals.
The company signed a strategic cooperation agreement with LQMT to accelerate the commercial application of amorphous metals. With the signing of this cooperation agreement, the two parties agreed to authorize the other party to use their respective patents and trademarks within their respective exclusive regions. In terms of technology, LQMT is the most famous amorphous metal research institution in the world. It covers almost all of the world's core amorphous metal material formulations, key processing technology, and other related intellectual property rights. Due to the lack of mass production technology such as mold design and equipment design, it has so far been limited to the production of small products. After taking a stake in LQMT through Liquid Metal Co., Ltd., the company will integrate the relevant resources and intellectual property advantages of the world's two top amorphous companies, further strengthen amorphous metal production technology, accelerate the commercial application of amorphous metals, promote revolutionary breakthroughs in amorphous metals, increase the technological content and added value of the company's products in the amorphous alloy industry, and create new profit growth points for the company.
Technology and production are deeply integrated. On the market and scientific research side, LQMT and Apple have set up a joint research team and will provide a large amount of machinery and production technology to jointly develop new product applications in the future.
Maintain the company's “buy” rating. The company has a complete industrial chain for the production of precision die-castings of lightweight alloys such as magnesium and aluminum alloys. Since entering amorphous alloys in 2010, it has developed mass production capacity for amorphous alloys, and amorphous alloys will become the company's new profit growth point. According to the company's project progress, we expect the company's 2015-2017 EPS to be 0.27 yuan, 0.36 yuan, and 0.42 yuan respectively. Considering the company's higher liquid metal technology threshold, a certain premium will be given, 65 times that of PE in 2016, with a corresponding target price of 23.42 yuan to maintain the “buy” rating.
uncertainty. Market risk; technical risk; exchange rate risk; capacity investment risk.