Main points of investment:
The company completed a private share offering, and Huaxin Oil became a major shareholder of the company.
The funds raised by the company will be invested in four projects such as ionic membrane caustic soda.
Huaxin Oil, the company's new major shareholder, is strong, and there will be room for asset injection in the future.
Summary of the report:
The private placement of the company has been completed, and Huaxin Oil has become a major shareholder of the company. The company recently completed a private stock offering, issuing a total of 729 million shares at an issue price of 2.65 yuan per share, raising a total of 1.931 billion yuan, which was fully subscribed by Huaxin Oil in cash. After the rights issue, Huaxin Oil holds 60.78% of the company, replacing Xie Ping and his wife as the company's largest shareholder.
It is difficult for the company to operate before the additional issue. From the perspective of income scale, the company's main business has hardly grown and has been hovering between 800 million and 900 million yuan; in terms of profit, except for 2012, the company's investment income of 105 million yuan from the sale of Huaxing construction shares significantly increased the net profit, the rest of the year is either break-even or substantial losses, the signal of poor management of the company is very obvious.
Raise investment projects to enhance the profitability of the company after the additional offering. After the ion-exchange membrane caustic soda project of 300000 tons / year reaches production, it is estimated that the annual operating income is 1.0023918 billion yuan, the net profit is 100.204 million yuan, and the after-tax internal rate of return is 16.09%. The annual operating income is estimated to be 665.7112 million yuan, with a net profit of 5053.67 million yuan; repaying bank loans will reduce the financial burden of the company; replenishing liquidity allows the company to seize the opportunity of industry integration.
The new major shareholder is strong, and there is room for asset injection in the future. The existing business of Huaxin Petroleum, the company's new major shareholder, is mainly for the international and domestic trade of petrochemical raw materials and additives, including aromatics, p-xylene, electrolytic copper and so on. From the perspective of business scale, the new major shareholders have a strong comprehensive strength, and there are expectations of asset injection in the future.
Earnings forecasts and valuations. We are optimistic about the future development prospects of the company, without considering the future asset injection, according to the existing business estimates, the EPS of the company for 13-15 years is 0.150.20x0.27 yuan respectively, and the overweight rating is given for the first time, with a target price of 9.50 yuan.