Event
The company announced on June 16 that it intends to issue shares to buy Tianjin Songzheng Electric vehicle Technology Co., Ltd. (referred to as "Tianjin Songzheng"). After the completion of the acquisition, the company will become the controlling shareholder of Tianjin Songzheng.
Tianjin Songzheng-the domestic leading enterprise of new energy vehicle power system has a registered capital of 80 million yuan and more than 600 employees, including nearly 200 researchers. It is a high-tech enterprise committed to providing new energy vehicle power system solutions and core components. The company has successively launched a series of products for the power system of new energy buses, and has successively developed and mastered the key technologies of the power system of new energy vehicles, such as pure electric passenger cars, pure electric special vehicles, and so on. developed and mastered high reliable, high safety electro-hydraulic power steering and other electric auxiliary products. The actual fuel saving rate of the Songzheng third-generation hybrid bus power system is more than 32%, which has become the benchmark of the domestic hybrid bus power system technical scheme; the Songzheng 4-generation plug-in deep hybrid bus power system has reached the international leading level; Songzheng 5-generation products are customized to the needs of users, pushing the domestic new energy bus technological innovation and product development to a new height. As of January 2017, new energy buses equipped with Songzheng products have been sold to more than 100 cities across the country, with a cumulative sales of more than 20000 vehicles, accounting for more than 20% of the domestic market for two consecutive years. Tianjin Song is the leading hybrid bus system assembly provider in China, and its main customers include Yutong bus, Xiamen Jinlong, Xiamen Golden Travel, Suzhou Jinlong, ZTO Express bus and so on. With deep cultivation and strong technical strength in the field of new energy bus power system, the company occupies the leading position of new energy bus power system in China.
It is proposed to acquire Tianjin Songzheng to create a new energy vehicle business growth point.
Tianjin Songzheng is mainly engaged in electric vehicle and hybrid vehicle research and development, auto parts research and development, production and sales. According to public data, Tianjin Songzheng's annual sales in 2014 reached 510 million yuan. In the first half of 2015, Songzheng's plug-in hybrid bus power system sales for two consecutive quarters were 4.4 times that of the same period last year, quadrupling sales. In 2015, the sales of powertrain series reached 1 billion, an increase of 2-3 times over the same period last year. Affected by the high demeanor of the new energy vehicle industry, the company has entered a stage of rapid development in recent years. Citic heavy Industries had revenue of 3.771 billion yuan in 2016, and if successfully implemented, the acquisition will have a significant positive impact on the company's overall performance.
Profit forecast and investment suggestion
Without considering the acquisition of Tianjin Songzheng, the company's net profit from 2017 to 2019 is expected to be-830 million yuan, 173 million yuan and 745 million yuan respectively, the EPS is-0.19,0.04,0.17 yuan respectively, and the corresponding E is-29x, 139x and 32x, respectively.
Risk hint
There is an uncertain risk in the acquisition of Tianjin Songzheng.