The company issued an announcement that LV Bin and Lai Jianqing, the middle and senior managers of the company, increased their holdings of about 2.99 million shares of the company by directly buying the company's shares and through the entrusted trust plan in the secondary market from September 18 to September 19, accounting for 0.75% of the company's total share capital, with a total increase of 80.09 million yuan. We believe that the company has developed rapidly in the field of new energy vehicles, the traditional business operation is stable, senior executives have increased their confidence in the future development of the company, and maintain the buy rating with a target price of 35.00 yuan.
Support the main points of rating
The company's senior executives increase their holdings to show confidence in the company's future development: the company announced on May 13 that based on confidence in the company's future development prospects, combined with a reasonable judgment of the company's stock value, the company's middle and senior managers, Weng Zhonghua, Zhou Fazhang, Liu Yingping, Lu Bin and Lai Jianqing, plan to increase their holdings of the company's shares in the next 12 months, totaling no less than 1.03 billion yuan and no more than 1.53 billion yuan.
This time, LV Bin and Lai Jianqing increased their holdings of 2988456 shares of the company, totaling 80.09 million yuan, with an average price of 26.80 yuan, demonstrating the company's management's confidence in future development.
The layout of the field of new energy vehicles is perfect: Zhihang New Energy, a subsidiary of the company, has a production capacity of 10,000 tons of cathode materials, 1 million 18650 lithium battery cells of Nissan (about 3.5GWh) and a complete production line of PACK system. The company previously issued an announcement to participate in the acquisition of NISSAN battery business by Jinshajiang Capital. Under the same conditions, when Nissa battery company arrives at Chinese mainland, the company enjoys certain priority; if Zhihang New Energy develops soft-package car power battery business in the future, it is expected to engraft Nissa battery company's technology to improve its production, research and development capabilities in the field of automobile power battery, thus realizing the upgrading of power battery industry.
Participate in Wuhan Zhongyu, layout company hydrogen fuel cell industry chain: the company previously acquired a 25% stake in Wuhan Zhongyu Power through capital increase. The company is a high-tech enterprise dedicated to the development of hydrogen fuel cell systems and hydrogen energy-related technologies, focusing on UAV power systems and vehicle power systems. The company has further improved its layout in the field of new energy vehicles and is expected to develop in the future.
Main risks faced by rating
The new energy vehicle policy falls short of expectations; the power battery business falls short of expectations.
Valuation
Under the current equity, we expect the company to earn 1.24,1.45,1.61 yuan per share in 2017-2019, and the price-to-earnings ratio before the corresponding share price is 21.2,18.1 and 16.4 times, respectively.