Investment logic
Continuous extension actions, strive to build the most complete product line in the manufacturing industry: the company is one of the leading enterprises in the domestic automation instrument industry, and has created the most complete product line in the industry through acquisition in recent years. In 2012 and 2015, the company acquired Shanghai Xiongfeng, Tianjin Yihuan, Guangzhou Senasi and Chengdu an Trust respectively, strengthening the layout of liquid level instruments, flow meters, temperature and pressure instruments and gas sensors.
Buy Ann Trust and enter the field of gas detection: in January 2015, the company plans to acquire Chengdu an Trust Electronics for 223 million yuan in the form of issuing shares and paying cash, so as to enter the promising field of gas sensors and gas detection. Senior executives of the company participated in this additional offering to subscribe for 5.57 million shares, with a lock-up period of three years, demonstrating their confidence in the future development of the company.
Create new growth points in the future through international cooperation in the field of layout servo systems and machine vision: the new electric servo products developed by the company and Germany aradex (Odes) began to be supplied in 2015, and the first batch of products are mainly supplied by Fugong Power. Acquire a 21.74% stake in Denmark's Scape Technologies Adebar S and set up a joint venture with it in China with a total investment of about 8.12 million yuan to develop the domestic robot application market.
Investment suggestion
We believe that the company has become one of the few domestic enterprises with a relatively complete product line of industrial automation instruments through epitaxial acquisition. At present, China is in an important stage of the transformation and upgrading of the manufacturing industry. Intelligent instruments are the core devices in the automatic and intelligent transformation, and there is still much room for development in the future. The new field of servo system and machine vision involved by the company through international cooperation is also the development direction of the cash manufacturing industry in the future, and the market prospect is broad. In addition, the company still has further extension expectations, we give "overweight" rating.
Valuation
Taking into account the merger situation of the acquisition, we predict that the company's main business income from 2015 to 2017 will be 573 million yuan, 672 million yuan and 781 million yuan respectively, an increase of 70%, 17% and 16% respectively over the same period last year. The net profit of the parent company will be 57 million yuan, 69 million yuan and 80 million yuan, an increase of 148%, 22% and 16% respectively over the same period last year, and the corresponding PE will be 0.2328 RMB 0.32 yuan, respectively, and the corresponding EPS will be 573 million times that of 96-79-68.
Risk
Macroeconomic growth is slowing down again, automation upgrading in downstream industries is slow, and new business development in servo and machine vision is not smooth.