Event: the company issued an announcement and its shares resumed trading on October 12, 2017. Prior to the release of a major asset restructuring announcement, it is proposed to purchase 100% equity in Ningbo Shuanglin Investment by issuing shares and paying cash, and raise supporting funds.
Comments:
1) the company acquires the DSI project at 100%, injects the transmission business into the listed company, and enhances the company's product structure and competitiveness. The company bought 100% equity of Shuanglin Investment at a price of 2.3 billion yuan, of which 678 million yuan was paid in cash and the remaining 1.62 billion yuan was paid by issuing 64.561 million shares. At the same time, it is proposed to issue no more than 79.59 million shares, the issue price is not less than 25.15 yuan, and the supporting funds raised shall not exceed 739 million yuan, it is used for the construction project of 360000 rear-drive automatic transmissions per year (333 million yuan) and to pay part of the cash consideration of this transaction (407 million yuan).
2) Shuanglin Investment is the 100%DSI project holding platform, leading the company's strategic development and headquarters management functions, as a management, procurement, sales and R & D platform. The DSI project consists of three companies, R & D platform DSI, production platform Hunan Jisheng and Shandong Geely. This major asset restructuring Shuanglin investment commitment that the deduction of non-net profit in 2017, 2018, 2019 and 2020 will not be less than 170 million yuan, 252 million yuan, 343 million yuan and 412 million yuan respectively.
3) the growth of existing business income is stable, and the growth rate of profit under pressure of expenses is relatively slow. The company's revenue grew by 36.95% in the first half of the year, and its net profit increased by 5.16% compared with the same period last year. The main factors for the slower profit growth are the increase in the cost of rising prices of raw materials such as steel, and the larger expenses incurred by the company's two asset restructuring this year, as well as the obvious increase in R & D fees brought about by the establishment of the Shanghai Electronic R & D Center.
4) the self-driving project company continues to push forward. The company previously announced an investment of 100 million yuan to invest in autopilot projects. The project integrates all kinds of resources for the development and introduction of self-driving technology, and the intelligent development of forward-looking layout vehicles.
5) profit forecast: the company's net profit in 2017 and 2018 is expected to be 360 million yuan and 450 million yuan respectively, corresponding to PE 28.7 times and 23 times, respectively; after considering additional offerings, the net profit in 2017 and 2018 is 530 million yuan and 702 million yuan respectively, and the corresponding PE is 24 times and 18 times respectively
6) risk hint: the growth rate of the whole vehicle downstream is lower than expected; the progress of major asset restructuring is not as expected.
