Huachangda is the leader of intelligent automation equipment system integration in China.
The company has long been actively committed to the layout of automotive, military, warehousing, manufacturing and many other areas of automation integrated equipment. Endogenous and epitaxial two-wheel drive, the company's performance has increased significantly in the past three years. In 2015, it acquired DMW.LLC, a well-known American mechanized intelligent transportation equipment company, and Wendh, a logistics warehousing automation system integration company, and in 2016, the company acquired Xi'an Longde Technology, a Chinese advanced military intelligent automation system integration provider, to add code layout to aerospace manufacturing automation.
Research and development is close to customer needs, and intelligent equipment manufacturing can achieve "corner overtaking" around the world.
In the process of research and development, the company has adopted the concept of modular design to meet the individual needs of customers. Through international mergers and acquisitions, Huachangda injects advanced technology, quickly completes technology research and development, increases opportunities for the company to collide with deep R & D thinking, and two international mergers and acquisitions have strengthened the competitiveness of the company's transportation equipment business in the global market. enhance the competitiveness of the domestic sector of the transportation division, and help the company's intelligent equipment manufacturing to achieve a comprehensive upgrade of "corner overtaking" around the world.
M & A collaboration to strengthen automation equipment system integration and vigorously expand global business
The company expands its global business through international mergers and acquisitions, taking a two-pronged approach to business at home and abroad. Through the overseas mergers and acquisitions of DMW and Whiteh, overseas customer revenue increased significantly between 2014 and 2016. DMW is a well-known mechanized intelligent conveying equipment company in the United States, which maintains a good relationship with the three major American automakers to help Huachangda enter the high-end customer market in the United States. WenchH is the most senior warehousing, logistics and transportation system integrator in the United States, which lays the foundation for the development of Huachangda to logistics warehousing automation.
Take advantage of the high growth of new energy vehicles, accurate layout of body-in-white automation
New energy vehicles are developing at a high speed, and the demand continues to grow. From 2015 to the first half of 2017, a total of 202new energy vehicle production projects were launched in China, involving an investment of more than 1 trillion yuan, more than 20 million vehicles have been publicly planned, and the demand for the transformation of body-in-white automatic production line has been determined. De Mecco has rich experience in the design, manufacture and integration of body-in-white equipment, and the core technology has reached the international level. The acquisition of de Mecco reveals three major synergies.
Enter the high-growth market of aviation manufacturing, the new downstream of the extension layout
Aviation manufacturing is a national strategy that integrates the success of the manufacturing industry. the aircraft and parts manufacturing industry will enter a period of rapid growth and will bring trillions of space to the industrial chain. Supporting enterprises in the aviation industry are expected to take the lead in development, aviation processing and equipment enterprises will benefit greatly, and there is considerable space for automation integration. Through the merger and acquisition of Longde Technology, Xinghang Technology and Changxing Aviation equipment, the company has improved the aerospace equipment automation industry chain.
A leader in automation equipment with both endogenous and epitaxial growth, maintaining a "buy" rating
Considering the rapid development of aviation and automobile automation production lines, the increasingly perfect layout of the company's core business, the enhancement of high-end customer resources at home and abroad, and the order potential brought about by continuous mergers and acquisitions to further extend the industrial chain. Regardless of the increased performance of the announced M & A companies, we expect the company to achieve net profits of 1.5,2.0 and 260 million yuan respectively, corresponding to EPS of 0.28,0.37,0.48 yuan and corresponding PE of 59,45,34 times respectively. Referring to the average PE level of the industry, we think that the reasonable PE of the company in 2017 is 78% 82 times, and the corresponding reasonable share price is 22% 23 yuan.
Risk hint: the growth rate of new business performance is not as expected, and the speed of industrial integration is not as expected.