The leader of industrial intelligent conveying and batching system, with intelligent manufacturing and environmental control as the two main industries.
The company is mainly engaged in providing a complete set of solutions for industrial intelligent transportation and batching, and is a leading provider of industrial intelligent conveying and batching systems in China. Waste gas treatment business was introduced in 2015. The industrial layout of environmental control, high-end intelligent manufacturing, intelligent control, cloud computing big data information technology has been gradually formed, and the products mainly serve many industries such as rubber tire, chemical industry, electric power and so on. After experiencing the performance pressure from 2014 to 2016, the company achieved revenue / return net profit of 127 million yuan / 4.03 million yuan in the first half of 2017, an increase of 90.02% / 34.92% over the same period last year.
The leader in the field of intelligent delivery ingredients, bottoming out is just around the corner.
Intelligent conveying and batching system is the company's traditional advantage business. The market share of the company's auxiliary system is as high as 40%, and the revenue continues to grow steadily. Although in recent years, small ingredient weighing system, pneumatic conveying system affected by the industry trend, declined significantly, but the company still occupies a leading position in the industry by virtue of technology and channel advantages. We expect the company's main business to rebound as the industry picks up this year.
Timely layout of environmental protection business after performance pressure, seize the opportunity of environmental governance, the company entered the environmental protection industry in 2015, taking the waste gas treatment system as a breakthrough to gradually expand the environmental protection system business. In 2016, the waste gas treatment system contributed 64.4002 million yuan in revenue, accounting for 29.40% of the total revenue, ranking second only to 35.91% of the auxiliary system. With the gradual realization of the performance of the company's environmental protection business (including exhaust gas treatment system), we expect the company's revenue from this business to exceed 100 million yuan in 2017.
771 million acquisition of Clearing Investment Intelligence, expanding from intelligent transportation to intelligent display and control, intelligent equipment
The company plans to buy a 97.01% stake in Clearing Investment Intelligence of the new third board company for 771 million yuan. On September 20, the plan was conditionally approved by the CSRC. Qing Investment Intelligence to the Internet of things large screen splicing system and intelligent control system, intelligent equipment as the main business. Intelligent screen display control can be used for monitoring, command and dispatching, conference center, indoor publicity, outdoor advertising and other scenarios; intelligent equipment includes smart gun wardrobe, intelligent robot, intelligent ski machine and secret cabinet and so on.
Corporate integration brings opportunities for collaborative development, and the realization of "1-1" is far greater than that of "2".
Clearing Investment Intelligence has revenue of 242 million yuan in 2016, and the statement will at least double the company's revenue, and is expected to integrate with the company's original business. At the sales level, the products of the two companies are sold together to make use of customer resources to create synergy. At the product level, the company's traditional business can introduce the screen intelligent control technology of CCTV Intelligence to realize an "unmanned factory"; the transportation robot being researched and developed by Citou Intelligence can complement the pneumatic conveying system of Xinyuan Intelligence: it focuses on the transportation of large items and small particles and powdery items respectively; the company's environmental protection business is also expected to cooperate with intelligent display control and robots.
The target price is 30.3-35.5 yuan, covering the "buy" rating for the first time.
The program has been conditionally passed, and at present, the company has replied to the audit opinions, and we believe that there is a high probability that the program can be implemented. Assuming that the acquisition can be completed and merged in January 2018, it is estimated that the fully diluted EPS in 2017-19 will be 0.18 / 0.74 shock 0.90 yuan; the reasonable price range is 30.3-35.5 yuan, corresponding to 18 years 41-48 times PE, the first coverage will be given a "buy" rating.
Risk hints: macroeconomic fluctuation risk; M & A failure risk; post-M & An integration is less than expected risk.
