Main points of investment
Event: the company issued a foreign investment announcement. In order to speed up the transformation and upgrading of the company, realize international operation, acquire foreign parts business with advanced technology, realize the interconnection of domestic and foreign resources, and better promote the development of the company, the company's board of directors approved and approved that the company intends to set up Wanxiang Qianchao (America) Co., Ltd. and Wanxiang Qianchao (Europe) Co., Ltd. in the British Virgin Islands with a registered capital of US $50,000.
Our comments:
Transformation and upgrading is not only the inevitable way out for China's manufacturing industry, but also the company's long-term development strategy. In the early stage, the company has been actively engaged in the transformation and upgrading of traditional parts business, including the active layout of new energy automobile parts business, such as investing 110 million in Tianjin Songzheng to enter the new energy drive motor business. In the future, the company will adhere to the development strategy of transformation and upgrading, speed up the pace of transformation and upgrading, and through the establishment of overseas subsidiaries to merge and reorganize advanced technology enterprises is one of the best ways.
The company will start the journey of overseas mergers and acquisitions and group overseas asset integration, and its performance is expected to improve rapidly in the future. The establishment of an overseas subsidiary is to create a platform for the company to acquire foreign parts and components with advanced technology, as well as to integrate the group's overseas assets. (1) overseas subsidiaries are expected to acquire Nippco. Niapco is the world's leading manufacturer of automotive transmission shafts, differential, suspension springs, aluminum die castings and powertrain and steering accessories for original equipment, vehicle performance and aftermarket companies. According to the official website of Wanxiang Group on December 7, GE Jun, an American expert from Wanxiang, is the head of Wanxiang Qianchao business and international project development, and was previously vice president of global procurement of Niapco. GE Jun is currently actively promoting the resource integration of Niapco and Wanxiang money, and speeding up the docking and integration with overseas resources. If the acquisition of Niapco is realized, it will further enhance the company's comprehensive competitiveness and influence, help the company to rapidly expand the international market, enter the global parts supply system of multinational corporations, and improve the company's performance. (2) Wanxiang Group has many high-quality new energy vehicle assets in the United States and Europe, such as pure electric luxury car company Fisco and battery company A123. Through its newly established overseas subsidiary, Wanxiang Group is expected to put overseas high-quality new energy vehicle assets, especially the A123 system battery company, into the stock market.
Profit forecast and investment advice: maintain the "overweight" rating, with estimated operating income of 10.12 billion yuan, 11.09 billion yuan and 12.41 billion yuan respectively, and net profit of 829 million yuan, 918 million yuan and 1.032 billion yuan respectively in 2015-2017, with growth rates of 17.3%, 10.8% and 12.4% respectively, and corresponding EPS of 0.36 yuan, 0.40 yuan and 0.45 yuan respectively.
Risk hints: the macroeconomic downturn leads to a decline in car sales, which in turn leads to a decrease in demand for auto parts and a drop in prices; the uncertainty of the injection of universal money into the group's new energy vehicle business; fluctuations in the development of new energy vehicles, demand is lower than expected; financial risks of overseas mergers and acquisitions and resource integration.