Main points of investment

Cold chain equipment faucet. The company is the only listing platform of Bingshan Group, and the reform of state-owned enterprises inspires vitality. The company has gradually improved the hot and cold industrial chain in the five major business areas of industrial refrigeration, food cold chain, central air conditioning, industrial and trade services and spare parts; the future benefits from the rapid development of unmanned retail and e-commerce cold chain logistics; the performance is expected to grow rapidly.

The reform of state-owned enterprises stimulates the endogenous power. The company relies on the Iceberg Group and has good cooperative relations with Japan's Panasonic, Sanyo and Fuji, and is expected to further promote business cooperation and asset integration in the future. After the new management took office in 2014, it successively implemented two periods of equity incentives and Zhonghuida increased its stake in the iceberg Group to stimulate the endogenous power of the enterprise.

In 2015, the company determined that there was no actual controller, improved the decision-making efficiency of capital operation, and successively integrated high-quality enterprise resources such as Wuxin refrigeration, Sanyo high efficiency, crystal snow freezing, iceberg service, iceberg metal and so on.

The company announced before: "Bingshan Group currently directly holds shares related to the hot and cold industry, and will choose the opportunity to inject Daleng shares in batches when the conditions are ripe to improve the hot and cold industry chain." Through the new investment platform company, Bingshan Group will explore and cultivate new undertakings and provide enterprises with the driving force for future growth. "

The rapid development of cold chain logistics promotes the continuous growth of the refrigeration equipment industry. In 2016, the national cold chain logistics market demand reached 220 billion yuan, an increase of 22.3% over the same period last year. We expect to maintain a growth rate of about 17% over the next three years. Urbanization, energy saving and environmental protection, food safety and fresh e-commerce drive the continuous upward development of the cold chain industry. In the next three years, the three major products of cold chain logistics: cold storage and freezer are expected to grow steadily, and refrigerated vehicles are expected to maintain rapid growth.

Associates contribute to the main performance, and future performance is expected to accelerate. The company transforms the service provider, sets up the iceberg technical service, builds the Internet of things cloud management platform as the online platform, "online + offline" to provide customers with fast service mode. Several associated enterprises, such as Panasonic Compressor and Fuji Iceberg, have contributed to the main performance, and the performance is expected to accelerate in the next few years, taking into account the good market demand for major products such as vending machines.

With the gradual rise of the trend of unmanned retail, vending machines will usher in a prosperous period, and the company's joint venture, the industry leader Fuji iceberg, is expected to benefit. The per capita share of vending machines in China is far lower than that in Japan, Europe and the United States, and the market space is broad. In recent years, domestic beverage manufacturers have made great efforts to distribute vending machines, which is expected to become an important driving force for accelerating the growth of the industry. Daleng shares hold a 49% stake in Fuji iceberg, which accounts for more than 50% of the domestic vending machine market and is expected to benefit. In 2016, Fuji iceberg realized 453 million yuan in income and 52.09 million yuan in net profit.

Profit forecast and valuation: from 2017 to 2019, the company's income is estimated to be 2.347 billion yuan, net profit 2.43 million yuan, and EPS 0.36 yuan, corresponding to PE 28-21-17 times.

Give the company 30 times PE in 2018, with a target price of 11 yuan, covered for the first time, and a "buy" rating.

Risk hints: the risk of macroeconomic slowdown; the risk of intensified competition in the industry; the risk of raw material price fluctuations.