Investment logic
Dongjie Intelligent main business is the design, manufacture and sales of intelligent logistics equipment. The company's main product categories include intelligent logistics transportation system, intelligent logistics warehousing system and intelligent three-dimensional parking system. Among them, intelligent logistics transportation system and intelligent logistics warehousing system are widely used in automobile and spare parts, warehousing logistics, food and beverage, medicine, chemical industry, tobacco and other fields; intelligent three-dimensional parking system is based on solving the problem of parking in urban development.
The performance has declined in 16 years and improved significantly in 17 years. In 2016, the macro-economy continued to decline, the market competition intensified, and the company's completion and acceptance projects decreased, but the company's net profit suffered a loss due to the influence of many factors, such as rising wages of cost-end staff, fixed R & D investment and equity incentive expenses. In 2017, the company's operating conditions stabilized and rebounded, the number of acceptance projects increased significantly, and the gross profit margin of the project increased. The operating income in the first quarter was 157 million yuan, an increase of 1006% over the same period last year. The net profit belonging to shareholders of listed companies was 14.71 million yuan, an increase of 185% over the same period last year. According to the company's forecast, 17H1 expects to make a profit of 24.509 million-29.509 million yuan, a substantial improvement over the same period last year.
It is proposed to acquire Hayden Company at a price of 500 million yuan and enter the auto painting production line business. Dongjie Intelligence plans to purchase 100% stake in Changzhou Hayden held by Liang Yansheng and others at a price of 500 million yuan by issuing shares. Changzhou Hayden main automotive automatic painting production line, customers for the automotive and construction machinery industry, provide equipment design and development, manufacturing and installation and commissioning services. The main customers include Shanghai Volkswagen, Geely Group, Beijing Mercedes-Benz, Changan Ford, Dongfeng Nissan and other well-known automobile manufacturers, as well as Tianjin Caterpillar Inc, Ningbo Huazhong, Ningbo Huaxiang and other construction machinery manufacturers. In 2016, Changzhou Hayden realized 218 million yuan in main business income, an increase of 141 percent over the same period last year, and a net profit of 18.15 million yuan.
Raise matching funds for the construction of the target project, profit commitment to enhance the performance of the company. Dongjie Intelligence plans to issue shares to no more than 5 qualified specific objects to raise supporting funds, the matching funds raised are mainly used to pay for the costs related to this transaction, the construction investment of the target company's high-efficiency and energy-saving automobile painting line project and R & D center construction project, and the total amount of supporting funds raised does not exceed 225 million yuan. The company signed the "Agreement on issuing shares to purchase assets" with six other trading parties, including Liang Yansheng, promising that the net profit of the underlying company in 2017,2018 and 2019 would not be less than 35 million yuan, 46 million yuan and 60 million yuan respectively.
Profit forecast
Ignoring this acquisition, we predict that the company's operating income for 2017-2019 will be 3.89Universe 4.70 / 551 million, an increase of 96% over the same period last year, 21% and 17% respectively over the same period last year. The net profit returned to the parent company will be 1 million yuan in 55-72-86, and the year-on-year growth of 112%, 30% and 20% will be 0.61 yuan respectively, and the corresponding PE will be 0.61 times as much as 58-45-37.
Investment suggestion
We believe that the company's main business intelligent logistics equipment recovery, performance is expected to achieve substantial growth this year; the proposed acquisition of Changzhou Hayden cut into the automotive painting automation production line, business areas and market space to further expand. We give the company a "buy" rating, with a target price of 25-30 yuan for 6-12 months.
Risk.
The risk of declining demand for intelligent logistics equipment and the risk of approval of acquisitions.
