Main points of investment
Accurate strategic positioning to create a high-quality intelligent distribution network system and equipment supplier: the company established the strategic goal of becoming an intelligent distribution network system solution and equipment provider, focusing on providing users with intelligent distribution network equipment represented by distribution automation terminals, intelligent medium-voltage switchgear, substation automation systems and complete sets of low-voltage electrical equipment. At present, the product line layout has been completed rapidly. Technology follows from the industry to lead the industry.
The integration of industry, university and research helps high-tech products to seize high profits: the company has reached technical cooperation with Tianjin University and Southeast University to make innovative progress in distribution network automation, microgrid control, electric vehicle charging and so on. The gross profit margin of the high-tech products of the smart distribution network is as high as 50%, and the business income of the company's distribution automation terminals and intelligent medium voltage switchgear both grew by more than 140% in 2016.
Take advantage of listing to expand production and seize development opportunities: the company issued 27 million new shares this time, raising a net fund of 271.1889 million yuan for two projects: distribution automation product expansion and microgrid control system generation. Mainly to solve the constraints of insufficient production capacity on the development of the company and the layout of new business areas of miniaturized distributed generation microgrid control system market.
Profit forecast: we expect the company's net profit in 2017-19 to be 0.60 yuan 0.66 yuan and 75 million yuan respectively, EPS 0.55,0.60 yuan and 0.71 yuan respectively, and the corresponding PE is 40.9 yuan 37.5 and 31.8 times respectively.
Risk tips: 1, the risk of unstable investment scale in the domestic power industry 2, the risk aggravated by market competition