Main points of investment
Event: July 18, the company announced that recently, through consultation with the management committee of Rugao Economic and technological Development Zone, the company invested in the construction of lithium battery batteries and PACK production lines in Rugao Management Commission New Energy Automobile and parts Industry Park, with a total fixed asset investment of not less than 660 million yuan. The main implementation body is Jiaweilong solid State Energy Storage Technology Rugao Co., Ltd.
A joint venture to establish a solid-state energy storage technology company to accelerate the development of lithium power industry: the company passed the "bill on foreign investment and related party transactions" on October 12, 2016. the company invests 85 million yuan and holds 85% of the shares. It is proposed to jointly fund the project company with Guoga Star and Shenzhen Longneng, which is called Jiawei Longneng solid State Energy Storage Technology Rugao Co., Ltd. The project company is responsible for carrying out lithium battery cell and pack business, and has complementary functions with related enterprises such as Land Ark, Kangdi New Energy vehicle, Sailin, Shenyang Golden Cup Automobile and so on in Rugao Development Zone. Based on the project company, the company actively promotes the layout of lithium power industry, and this investment of 660 million yuan will promote the rapid development of the company's lithium power business.
The LED industry is picking up and growing steadily, and sharing bicycles brings new profit growth points: the company released its semi-annual performance forecast on July 6. It is expected to make a profit of 215 million yuan to 250 million yuan in the first half of 17 years, an increase of 75.82% 104.44% over the same period last year. The company's performance increased significantly in the first half compared with the same period last year, mainly due to the steady growth of Guoyuan Power merger and Photovoltaic Power Station business which the company acquired last year. The new project and scale of the company's power plant EPC have maintained a rapid growth compared with the same period last year, and the income and profit level have also maintained a trend of simultaneous growth.
In addition, with the rapid rise of bike-sharing business, the company makes use of the experience and advantages of small photovoltaic energy storage systems accumulated in LED lighting business to provide mobile energy services for shared bikes of industry leading companies. At present, the company has become the largest supplier in this field in the market, and this business has become a new profit growth point for the company. Shared bikes mobike and ofo ofo have received huge financing, the industry reshuffle will enter the oligopoly stage, Jiawei serves the leading companies of shared bikes, and is expected to continue to benefit from it.
Layout of the graphene industry for many years, research and development follows the demand of the industry: since the establishment of Guochuang Jiawei in 2014, through cooperation with universities such as Tsinghua University and Central South University, the company already has preliminary mass production capacity, mainly by adding graphene as an additive to improve product performance. The research and development of the company's graphene-related products closely follows the company's current LED lighting, lithium battery and energy storage technology business needs, and is expected to make new breakthroughs and progress in related fields. As an early layout of graphene technology, the company has a first-mover advantage and is expected to bring sales revenue to the company in the second half of the year.
Investment advice: the company's traditional photovoltaic business is picking up, LED and energy storage business benefit from the rise of shared bicycles, graphene and solid-state lithium battery business, and are expected to continue to benefit from the rapid development of emerging industries in the future. It is estimated that from 2017 to 2019, the EPS of the company will be 0.68,0.96,1.28 yuan respectively, and the corresponding PE will be 20.9,14.9,11.2 times respectively. For the first time, the company will be given a "Buy-A" rating, with a 6-month target price of 22 yuan.
Risk tips: lithium power projects do not meet expectations, and competition in the photovoltaic industry intensifies.