Event: the company suspended its trading on October 12 this year due to the raising of supporting funds for non-public offerings. During the suspension period, the company issued a performance forecast for the first three quarters of 2015. During the reporting period, the company's net profit belonging to listed companies increased by 4097.86%-4447.68% over the same period last year, between 60 million yuan and 65 million yuan. Yesterday, the company announced the completion of the non-public offering of shares to raise supporting funds for specific investor inquiry, and resumed trading today.
Increase issuance and expand production, improve the business structure, and be an one-stop service provider. The company raised about 390 million yuan in matching funds for non-public offerings and issued 26.44 million shares. Of this amount, 210 million yuan is used to pay the cash consideration for the purchase of Shenzhen Lianmao and the intermediary fees for this transaction, and the rest is used for the investment of project construction and operating funds of the underlying company, mainly for the construction of R & D centers and capacity expansion projects. According to the demand, the company will increase the R & D investment and production capacity of CNC metal precision structures and intelligent hardware precision structures. It is estimated that after the completion of the project, Shenzhen Lianmao will increase its annual sales revenue by an average of 275 million yuan and its annual net profit by 18.5 million yuan. Through the merger and reorganization of Shenzhen Yue Optoelectronics and Shenzhen Lianmao, the company has transformed from a single window protective screen supplier to a core one-stop service provider with window protective screen, touch products and precision structural components. And through this additional offering to raise capital, the company's manufacturing business of precision structural parts is more complete, which can meet the needs of customers' plastic precision structural parts and metal precision structural parts at the same time. In the post-smartphone era, diversified business structure helps to quickly meet the diverse needs of the market and disperse risks.
Industrial integration is accelerated, the company's capital advantage is highlighted, and the process of market share concentration is enjoyed. With the slowdown of the overall growth of the mobile phone market and the acceleration of market integration, some enterprises are facing the crisis of being eliminated due to the lack of scale advantage or capital advantage. After a series of integration with the help of the capital market platform, the company has been rapidly improved in scale, and it is expected that the company will directly benefit from industrial integration and enjoy the process of market share concentration. At the same time, the company has optimized the customer structure through synergy, successfully cut into the list of suppliers such as Huawei, and is expected to become the company's largest customer in 2016.
Profit forecast and rating: although the overall growth of the mobile phone market has slowed down, and some mobile phone brands have the pressure of destocking, the company mainly supplies touch screens and structural components for the middle and low-end mobile phones of domestic first-tier customers, while the low-end mobile phones of about 1000 yuan are the main force of market shipments, so the company will still enjoy the growth of this market. The company's EPS in 2015-2017 is expected to be 0.36,0.58,0.65 yuan respectively. Based on the closing price of 19.15 yuan on October 9, the corresponding PE is 53 times, 33 times and 29 times respectively, maintaining the "overweight" rating.
Risk tips: risks such as further slowdown in market growth, insufficient demand due to lower-than-expected sales of customers' mobile phones, actual or less-than-expected performance of acquisition projects, and so on.
