The traditional business has remarkable advantages: Tiancheng Holdings is one of the five major electrical production bases in China, with an annual production capacity of 5000 sets of on-load tap-changers and 40,000 sets of medium-voltage component equipment, and is one of the largest industrial electrical production bases in Southwest China. At the same time, it has the largest production base of solid vacuum circuit breakers and high-voltage complete sets of equipment in Guangxi. The company's on-load tap-changer sales volume is the third in the world, the domestic market share is the second in the medium voltage field, the company's solid insulation switchgear and other products have won national and provincial scientific and technological progress awards, national new product awards, national and provincial brand-name products, and have formed a good cooperative relationship with GE.
The asset replacement is progressing smoothly, and the mineral business is expected to contribute to the performance: the company has successfully replaced the wind power-related business into the field of mining, processing and management of mineral products, and has been designated by the Zunyi Municipal Government as the Zunyi Nickel-Molybdenum Mining Integration platform. and has been incorporated into the Zunyi Municipal Government's "12th five-year Plan" Industrial Development Plan. The company owns nickel-molybdenum minerals with a mining area of about 30 square kilometers, with ore reserves of 3.1244 million tons, nickel metal of 95600 tons and molybdenum metal of 154900 tons. The overseas zirconium-titanium ore enterprises in which the company participates in the mining rights involve 311.714 million tons of ore and 12.264 million tons of metal. It is one of the few Chinese-funded enterprises that can obtain mineral mining certificates in Mozambique.
Layer by layer layout transformation of the Internet financial platform: the company works steadily and takes a differentiated competition route, builds the foundation of the platform through the acquisition of Guohua Huiyin, hand in hand with UnionPay to provide business guarantee for related business and broadens user flow; through cooperation with the government to sign a smart city to provide a market entry for the implementation of the business Through the integration of payment platforms and the use of mobile intelligent terminals, the establishment of small and micro financial service outlets can provide rich financial lending and financial value-added services, provide one-stop convenient services for consumers, and improve the business efficiency and income of small and micro businesses. We believe that the license, data and channels owned by the company can further promote the transformation of the company to the Internet business.
Investment advice: we predict that the company's 2015 / 2016 / 2016 / 2017 EPS will be 0.12 / 0.14 / 0.2 respectively. Considering the huge potential of the company in the Internet financial business platform, with reference to the market value of the counterparty, we conservatively give the target price of 18 yuan and buy-A rating.
Risk hint: third-party payment does not meet the expected risk; cooperation with the government and UnionPay has a weak say.