Main points of investment:
The listed platform of the Chemical Science Research Institute has outstanding scientific research strength. Tianhua Institute is a listed platform of the Academy of Chemical Sciences, and the actual controller is Sinochem. It is mainly engaged in the production and sales of drying equipment, electrochemical equipment, waste heat boilers and other chemical equipment. The company has strong scientific research and innovation strength. by the end of the 16th, more than 460 major scientific and technological achievements have been achieved, the steam drying technology of cogeneration raw coal has been industrially applied, and many technologies such as coal humidity control and lignite upgrading are in the stage of market development. Great potential.
It is proposed to reorganize and inject rubber processing equipment assets such as Klaus Murphy Company. The company recently signed a restructuring framework agreement to reorganize the rubber processing equipment assets (100% equity of KraussMaffei GroupGMbH and the main operating assets and liabilities of Guilin Rubber Machinery, Yiyang Rubber Machinery, Sanming Machinery and China Rubber Automation). Headquartered in Munich, Germany, KM is a world-renowned manufacturer of plastic and rubber processing machinery with a history of nearly 180 years, with customers covering automotive, packaging, medical, construction, electrical, electronics and many other fields. In April 2016, Sinochem completed the acquisition of KM for 925 million euros, learning advanced German manufacturing technology as an important starting point to achieve the "made in China 2025" goal. The company's asset restructuring is proposed to inject into KM and other rubber processing equipment-related assets of the group, and the deep integration of the group's equipment sector resources will help:
1) Tianhuayuan's main equipment manufacturing business is expected to improve operation and management efficiency by learning KM's advanced management concept and operation mode; 2) KM, as a global leader in plastic box rubber processing machinery and equipment manufacturing, already has a mature sales network, which is expected to promote the expansion of Tianhuayuan high-end equipment business in the global market.
Deep layout of energy-saving and environmental protection equipment. The company's deep layout in the field of energy saving and environmental protection, the formation of urban sludge pollution-free treatment technology, coal moisture control technology and equipment, high ammonia nitrogen wastewater treatment technology, coal-made natural gas waste heat recovery system, ethylene cracking furnace quench boiler and combustion system, co-production of high temperature ash gas vertical waste heat boiler and other energy-saving and environmental protection technologies and products have developed rapidly and have a good market prospect. Stricter environmental regulation and the improvement of the profitability of industrial enterprises will promote the sales of energy-saving and environmental protection equipment, accelerate the application of the company's products in the industrial field, and help the company improve its performance.
Profit forecast. Without considering the injection of reorganized assets, it is predicted that the EPS of the company in 17,18 and 19 years is 0.17,0.33,0.45 yuan respectively. Considering the forward-looking layout of the company in the field of energy-saving and environmental protection equipment, and referring to the valuation of the comparable company, it is given an 18-year 50-fold PE, corresponding to the target price of 16.50 yuan.
Risk hint. The speed of market expansion is lower than expected; restructuring and integration is not as expected.