Event description
Jiawei shares announced that the company intends to issue shares to acquire 100% of Guoyuan Power held by Guoyang Photovoltaic; at the same time, it intends to issue shares to no more than 5 other specific investors to raise supporting funds, with a total amount of no more than 800 million yuan for 70MW power station construction and supplementary liquidity.
Event comment
The development strategy of new energy is clear, and the double main lines of development and operation are advancing rapidly. The company is a leading enterprise in photovoltaic lawn lamp market segmentation and has long experience in photovoltaic industry. Since 2014, under the background of the rapid development of the domestic photovoltaic industry, the company has further clarified the new energy development strategy. Through cooperation with Zhenfa New Energy and independent development, the company has rapidly promoted the double main line strategy of power plant development and operation: 1) through the acquisition of Huayuan New Energy, a subsidiary of Zhenfa New Energy, the company has quickly cut into the EPC field of the power station, and Huayuan New Energy has two total 200MW photovoltaic power stations in operation. Lay the foundation for the strategic development of the company's overall new energy business. According to the acquisition agreement between the two sides, Huayuan New Energy promises to achieve net profit of not less than 2.59,3.35 and 366 million yuan in 2015, 2016 and 2017 respectively. 2) the company established Jiawei (Shanghai) Electric Power Company to expand the scale of the power station by the mode of acquisition + self-construction. At present, the acquisition of 20MW power station in Inner Mongolia has been completed, and the 20MW power station in Xinjiang and 40MW power station in Shandong are under construction. Considering this acquisition and later self-construction, it is expected that the scale of the company's own power station will exceed 400MW (excluding Huayuan) by the end of 2016.
Private placement to acquire Guoyuan Electric Power and raise supporting funds to promote the expansion of power plant scale and profits. 1) the company intends to issue shares at a price of 1.105 billion to acquire the 100% stake in Guoyuan Power held by Chuyang Photovoltaic. The offering price is 19.44 yuan per share, for a total of 56.84 million shares. Guoyuan Electric Power has 100MW grid-connected photovoltaic power station in Jinchang, Gansu Province, with an electricity price of 1 yuan per kilowatt-hour. Gansu is the hardest hit area of photovoltaic power limitation in China, but the company started a business model and signed a direct power supply contract with Jinchuan Group (the selling price is 0.73 yuan) to promote power consumption and ensure profitability. from January to August 2015, the utilization rate of power generation was 79.49%, and the net profit was nearly 40 million yuan. Chuyang Photovoltaic promises that the net profit of Guoyuan Electric Power in 2016 and 2017 will not be less than 0.79 yuan or 70 million yuan. 2) the company intends to raise no more than 800 million yuan for the construction and supplementary working capital of Fuzhou 30MW and Heze Chengwu 40MW photovoltaic power station.
The traditional business remains stable, the layout of smart homes, the outbreak of growth is imminent. The company's traditional LED lamp business is stable and maintains a small profit level. On the basis of the original industry, the company focuses on developing intelligent security wall lamps, cutting into the field of smart home, making use of the company's channel advantages, focusing on developing overseas markets such as North America. At present, the company's intelligent security wall lamp has completed trial marketing and promotion in North America, and the market response is good. At the same time, with the intelligent security wall lamp as the breakthrough, the company further promotes the intelligent home lighting projects such as high-end Bluetooth intelligent control audio low-voltage lights, and improves the layout of the smart home industry chain.
Give a buy rating. It is estimated that the company's EPS in 2015 and 2016 will be 0.38,1.33 yuan respectively, corresponding to 48,14 times PE, and will be given a buy rating.