As a leading professional manufacturer of micro-enamelled wire in China, the company has adjusted its business structure in recent years on the basis of consolidating the original traditional business development. Through entering the upper reaches of the new energy industry chain with Jueng Yongtuo and Zangge Holdings, the company has occupied the technical high point and cooperated to develop salt lake lithium extraction technology. In the future, with the gradual expansion of technology transfer income and enriched adsorption material sales income, the company's performance will usher in a new increase point. In 17-18-19, EPS is expected to give a "highly recommended-A" investment rating for the first time corresponding to 17/18/19PE=549X/72X/45X.
The transformation of the dual mode of "finance + industry". Xianfeng Holdings is mainly engaged in the R & D, production and sales of fine enamelled wire used in home appliance market control electronic components and other fields. Affected by macroeconomic weakness, the company is actively exploring transformation while consolidating its traditional business position. After divesting the original business to an independent wholly-owned subsidiary, it will gradually realize the transformation to the holding platform and vigorously distribute the financial business. In 2015, the company laid out commodity trading, funds, financial leasing, commercial factoring, asset management and other businesses through acquisitions, new ventures and cooperative investments. In order to seize the opportunity of supply-side reform, the company established Xianfeng Shenzhen New Energy in 2017 to officially enter the new energy field. In the future, the company will realize the development of "finance + new energy" with two wings.
Join hands to gather energy and hold hands to cut into the new energy resources, which will extend to the upper and lower reaches of the industrial chain in the future. In May 2017, the company cooperated with Ju Neng Yongtuo to obtain the second generation adsorption lithium extraction technology and the preparation of lithium ion enrichment materials in Russia. The adsorption technology can extract lithium ion from salt lake through reaction tower, which has no stringent requirements on the ratio of magnesium to lithium in salt lake, and has high technical barrier, so it can really extract lithium with high efficiency and low cost. In August 2017, the company reached a technical agreement and a procurement agreement with Zangge for lithium ion enrichment materials, planned to produce and sell lithium ion enrichment materials, and officially entered the lithium industry. Considering that the lithium industry will form a huge market, it is expected that the company will make efforts to the salt lake resources and achieve upstream extension in the future.
For the first time, it gives a "highly recommended-A" investment rating. We expect the enamelled wire business to adjust its product structure and develop to high-end products in order to maintain the company's leading position in this field. In the future, the company will mainly focus on the field of new energy. Under the profit model of "technology transfer" and "sales of enriched materials", with the putting into production of partners, it will be greatly increased in the future. It is estimated that in 17-18-19, the EPS will be 0.01max 0.11max 0.18 respectively, corresponding to 17/18/19PE=593/73.1/43.9, it will be given the "highly recommended-A" investment rating for the first time.
Risk hints: cross-industry risk, financial market risk, technical risk, uncertainty of mineral resources development
