Main points of investment
Matters: the company issued an announcement that the inquiry link for the subscribers of non-public offerings has been successfully completed, and trading has been resumed since August 14.
Peace viewpoint:
The company released a plan on April 20, 2016 to raise no more than 506 million yuan to build a special multi-functional intelligent factory, agricultural ecological film intelligent equipment, and five-end big data intelligent service platform, to create "wisdom Jinming" in an all-round way, and to transform and upgrade into a solution provider for smart factory solutions in the industry.
The general manager's large subscription shows confidence: in this additional subscription, General Manager Ma Jiazhen intends to subscribe for no less than 100 million yuan and no more than 200 million yuan. As the son of the actual controller, director and general manager of the company, Ma Jiazhen actively participated in the subscription for a large amount of money, reflecting the company's senior executives' determination and confidence in transformation and upgrading.
The production capacity gap of high-end film in China is huge, and the company is facing a great opportunity for transformation: under the background of consumption upgrading, the domestic market has a growing demand for high-end film. Industrial, commercial, construction, agriculture and other different application fields have a great demand for high-end film. However, at present, the film production capacity of our country is mainly in the middle and low end, and the gap of high-end film production capacity is huge. As the leading enterprise of domestic thin film equipment, the company is decisively transforming to intelligent equipment, which will usher in a major development opportunity.
Investment advice: the company's main film machinery sales are gradually picking up, the company relies on its own advantages to enter the high-end film market, is expected to significantly improve the company's profitability. The company's additional projects are aimed at "Industrial 4.0", transformation and upgrading resolutely and decisively, 2017 may become an important turning point for the company. It is estimated that the company's EPS from 2017 to 2019 will be 0.34 yuan, 0.44 yuan and 0.58 yuan respectively, with a price-to-earnings ratio of 43 times, 33 times and 25 times respectively, maintaining a "recommended" rating.
Risk tips: (1) the construction of the fixed increase project is not as expected; (2) the expansion of the high-end film market is not as expected.