Main points of investment:
The non-public offering has been approved by the Securities Regulatory Commission, and a large proportion of the double Star Group has subscribed, and is optimistic about the development of the company for a long time. The CSRC approved that the non-public issuance of no more than 180 million shares and the total amount of funds raised shall not exceed 900 million yuan. It is intended to be used for the "double-star environmental protection relocation transformation and upgrading green tire industry 4.0 demonstration base high-performance passenger car radial tire project" and "double-star environmental protection relocation transformation upgrading green tire intelligent demonstration base automatic manufacturing equipment project (phase I). The opening price is 6.33 yuan per share. The proportion of the company's controlling shareholder double Star Group subscribing for the total number of shares issued this time is not less than 23.38%, and is optimistic about the development of the company for a long time.
The intelligent model factory is basically completed, the net interest rate of the new factory is expected to be greatly increased, and the layout of the "automobile aftermarket" is worth looking forward to. The relocation of production capacity has been carried out in an orderly manner, and the net interest rate of the new plant has increased significantly. After the relocation, an intelligent model factory with 4 million sets of all-steel tyres and 6 million sets of semi-steel tires will be built, and the level of net interest rate will be significantly higher than that of the old factory. The company adopts O2O+E2E 's innovative business model to enter the "automotive aftermarket". At present, it is in an orderly layout and has achieved initial results. The company launched the "Mobile Star Monkey Service vehicle" to provide customers with tire installation, repair, maintenance and other door-to-door services.
Pay attention to brand, product, strategic innovation, strong momentum of development. In June, the World Brand Lab released the 2017 list of "China's 500 most valuable Brands", with double Star Tire ranking 115th and China's tire industry first. The company also continues to innovate in products, developing high-end, highly differentiated, high value-added personalized products. In addition, the company's global model and market innovation center and global technology and demand innovation center (including global graphene tire R & D center) have been fully completed and put into operation; commercial tire full process industry 4.0 intelligent chemical plant has fully reached production, passenger tire full process industry 4.0 intelligent chemical plant will soon be put into full production.
The establishment of an industrial M & A fund refers to the target of high quality at home and abroad, the purchase of Jinhu tire project is terminated, and the long-term plan of industrial integration will not be changed.
On November 22, 2016, the company announced that it contributed 900 million yuan to participate in the establishment of Qingdao Star Micro Equity Investment Fund, which mainly invests in tires, automobiles and related industries at home and abroad. The M & A fund adopts the limited partnership model, with a total size of no more than 10 billion yuan, the company subscribes 900 million yuan as a limited partner, Qingdao Guoxin Capital and Qingdao International Investment subscribe 395 million yuan and 50 million yuan respectively as limited partners. Qingdao Guotou Dehou and Qingdao Guoxin Innovation subscribed 5 million yuan respectively as general partners. Prior to this, Xingwei and Jinhu signed an equity sale and purchase agreement, after the two sides agreed that there is no responsibility to terminate the signed SPA, Xingwei Fund does not have to bear any liability for breach of contract. In the future, the company will still focus on domestic and foreign tires, automobiles and upstream and downstream related industries to find opportunities for industrial integration, increase the intensity of domestic and foreign mergers and acquisitions, and promote global layout.
Profit forecast and investment rating: the intelligent model factory is basically completed, and the level of net interest rate is expected to increase gradually. participation in the establishment of M & A funds is expected to integrate high-quality resources at home and abroad, and is expected to become a new tyre giant in China. To maintain the increased rating and profit forecast, it is estimated that the EPS in 17-19 is 0.23,0.39 and 0.45 yuan respectively, and the corresponding PE in 17-19 is 29, 17 and 15 times respectively.
Risk tips: fierce competition in domestic and foreign markets, industry integration is not up to expectations, market development is not up to expectations.