Incidents:
The company recently announced that the non-public offering of shares has been completed. The issue price is 13.01 yuan/share. The issuance targets are 8 companies, raising 1.1 billion yuan in capital. Among them, Tianjin Baili Equipment Group, the majority shareholder, subscribed for 110 million yuan.
Reviews:
Increased issuance boosts industrial upgrading
The additional projects issued by the company are used for high-temperature superconducting wire projects, superconducting R&D centers, and some primary equipment projects. The additional capital raised will provide strong support for the company to transform strong smart grid technology and lay out the high-temperature superconducting industry. This time, the majority shareholder Baili Machinery Equipment Group participated in the subscription of 110 million yuan for a period of three years, which fully demonstrated the majority shareholders' support for the company's development and confidence in the company's business.
Preparation and mass production conditions for superconducting current limiters
The company's 220kv superconducting current limiter has been connected to the network at the Tianjin Shigezhuang substation for more than 2 years since the end of 2012. Testing data from trial and error during this period, the State Grid specially sent experts to the network, which achieved good results. According to past practice, for safety reasons, if a new product wants to enter the procurement catalogue of the State Grid, it is generally necessary to have a stable operating performance of at least two years. At this point, the company's products have the ability to obtain batch orders. The superconducting current limiter is currently the SFCL with the highest grid operation level and the highest capacity in the world. It does not lose excesses in a high resistance state, can quickly meet closing requirements, and when in the superconducting state, it consumes very little electrical energy, and its technical advantages are outstanding. Superconducting wire is the core basic material for superconducting current limiters. Currently, it is mainly produced abroad. It can be widely used in a series of high-temperature superconducting products, including fault current limiters, superconducting transmission cables, superconducting wind turbines, superconducting transformers, superconducting energy storage systems, etc., with broad market prospects. In the future, with the mass production of superconducting current limiters and superconducting wires, it will greatly boost the company's revenue and profit margin levels and help the company transform smart grid equipment.
Investment recommendations and analytical ratings
We are optimistic about the company's transformation direction and technical advantages. Currently, the stock price is lower than the company's additional price. We think it has a strong margin of safety, so we will give a recommended rating.