Core ideas:
1. Event
The company announced that on July 20, 2017, the company signed the "Xinxiang Zhongke Technology Co., Ltd. Equity transfer Framework Agreement" with Xinxiang Zhongsheng Industrial Co., Ltd. it intends to acquire the equity held by the transferor in Xinxiang Zhongke Technology Co., Ltd. in cash. The transfer price of the underlying shares shall not exceed 50% of the net assets at the end of 2016 as reported by the acquirer in the audited consolidated financial and accounting report.
two。 Our analysis and judgment
(1) the transformation is clear, and the acquisition will strengthen the company's new energy distribution.
China Science and Technology is one of the earliest enterprises engaged in research and development, production and sales of lithium diaphragm in China, and has a certain market share and strong industry influence in the lithium diaphragm industry. Products include PP dry diaphragm, PE wet diaphragm, PE evaporation diaphragm, ceramic coated diaphragm and other four categories, which are widely used in portable appliances, new energy vehicles, energy storage power stations and other fields. By the end of 2016, the total assets of China Science and Technology was 824.8855 million yuan, and the owner's equity belonging to the parent company was 128.8321 million yuan. In 2016, the operating income of China Science and Technology was 253.0378 million yuan, and the net profit attributed to the parent company was 29.3678 million yuan.
The diaphragm project, one of the previous investment projects of Lucky Film, is about to reach production. If this acquisition is completed, China Science and Technology will become a controlling subsidiary of the company, which will further enhance the market competitiveness of Lucky Film lithium diaphragm business and significantly thicken the company's performance.
(2) it is expected to benefit from civil-military integration and the reform of aerospace science and technology groups.
The company is the flagship enterprise of China Lucky Film Group, and its main business has expanded to the field of membrane and coated membrane processing products in recent years. Lucky Group is an important sub-group of Aerospace Science and Technology Group, which is expected to benefit deeply from the development of civil-military integration in our country. The actual controller of the company is Aerospace Science and Technology Group. During the 13th five-year Plan period, the asset securitization rate of the Aerospace Science and Technology Group is expected to increase from 15% to 45%. The in vitro profit scale of the listed companies of the Lucky Group is still on a considerable scale, and the company is the core platform of the Lucky Group. it is expected to significantly benefit from the expected increase in asset securitization of the Aerospace Science and Technology Group.
3. Investment suggestion
Considering this acquisition, we expect the company to make a net profit of 100 million yuan and 130 million yuan in 2017 and 2018, corresponding to 0.27 yuan and 0.35 yuan in EPS. As an important platform of Aerospace Science and Technology Group, the company has a clear direction for the transformation of new energy and is expected to benefit from civil-military integration and the reform of Aerospace Science and Technology Group.
Risk Tip: the risk that the progress of the company's lithium power project is lower than expected.