Investment highlights:
The majority shareholder joined the 3D Printing Research Institute, and Academician Lu Bingheng joined. The Nanjing Additive Manufacturing Research Institute announced an equity transfer and ribbon cutting ceremony. The investment company set up by Tai Zhengbiao, the actual controller and chairman of Taier Heavy Industries, became the controlling shareholder of Nanjing Additives. Lu Bingheng, an academician of the Chinese Academy of Engineering, known as the “father of 3D printing in China,” joined from then on. This equity transfer has enabled the company to take another step forward on the path of intelligent manufacturing, and is also expected to build the strongest additive manufacturing R&D base in China.
Lay out an intelligent industrial park, and the transformation is firm. Previously, the company cooperated with Shanghai Xitai Investment Co., Ltd. to establish the Ma'anshan Taier Intelligent Industrial Park, while Shanghai Xitai was also controlled by Tai Zhengbiao, chairman of Taier Heavy Industries. The intelligent industrial park focuses on the two fields of manufacturing intelligence and special service intelligence, including the five major sectors of industrial robots, industrial software and communications, 3D printing, home services and public service robots. It establishes a “five in one” working mechanism for R&D incubation, high-end manufacturing, warehousing and logistics, business exhibitions, and life services, forming a complete intelligent industrial chain and building a first-class domestic intelligent industrial cluster.
Currently, the stock price is close to the employee's shareholding price, which has a theoretical margin of safety. In June 2015, the company's employee stock ownership plan completed stock purchases, with an average purchase price of 19.23 yuan/share. The lockdown period for the shares purchased in the plan was from June 3, 2015 to June 2, 2016.
The main business is improving, buying ratings are maintained, and profit forecasts are maintained. It is expected that the company's operating income and subsidy revenue will increase. We expect the company's 2015-2017 EPS to be 0.07/0.1/0.2 yuan, and the corresponding dynamic PE to be 319X, 223X, and 112X. Considering the company's reasonable layout over a year, the pace of intelligent transformation is steady, the purchase rating is maintained, and the profit forecast is maintained.