Main points of investment:
Company announcement: Fu Guoping and Yang Xiaowei, the company's controlling shareholders and actual controllers, intend to transfer 205 million shares (accounting for 24.34% of the total share capital) to Ruiwei investment by agreement. Xiao Peng, the company's current chairman, holds a 25 per cent stake in Ruiwei Investment, while Fu Guoping holds the remaining 75 per cent. After the equity transfer, Fuping and Yang Xiaowei still directly hold a total of 5512 shares (6.54% of the total share capital) of the company. Xiao Peng is the concerted actor of Fu Guoping and Yang Xiaowei, who are the actual controllers of the company, and the control of the company has not changed.
The interests of the new management team are bound. In view of the fact that the company has experienced rapid development in the first few years of listing, the development of the business has encountered obvious bottlenecks. In order to reverse this unfavorable situation, the new board of directors made a major adjustment to the company's senior management team and vigorously introduced industry leaders. Since the establishment of the new team, gratifying changes have taken place in various undertakings: the executive ability and management efficiency of the company's management team have been significantly improved, and the company's traditional business performance has improved obviously. at the same time, the company has achieved a zero breakthrough in emerging business areas (smart home, IDC and value-added services, etc.) and began to explore specific applications in the new retail field. The company's latest expansion of clean energy photovoltaic plate has a good momentum of development. This equity transfer will solve the problem that the shareholding ratio of the new management team is too low, achieve interest binding and provide incentives.
The company expects a net profit of 5600-65 million yuan in 2017, compared with 38.2 million yuan in the same period last year, an increase of 47 percent over the same period last year.
(the company's 17-year net profit is contributed by the old business, and orders for the Internet of things smart home business will be confirmed one after another in 18 years.) Performance driving factors include: 1) market development led to rapid growth of optoelectronic thin film devices; 2) subsidiary Oying Optoelectronics to reduce costs and increase efficiency, opening up new profit growth points; 3) subsidiary Nantong Qiyun's IDC value-added business achieved a zero breakthrough; 4) land and housing assets disposal income. In addition, the company's second phase of the employee stock ownership plan has completed the purchase, buying a total of 18.64 million shares, with a transaction value of about 208 million yuan, with an average price of 11.132 yuan per share, which is upside down with the current stock price.
Maintain the buy rating. We are optimistic about the layout of the Internet of things for a long time, and the prosperity of the old business sector has rebounded. The company's smart home products recently landed in the CES exhibition, and won Huaxia Happiness 5000 orders, commercial landing smoothly, this year is expected to get more orders. According to the company's performance forecast, we downgrade the 17-year profit forecast while maintaining the 18-19 profit forecast. It is estimated that the EPS for 17-19 will be 0.07 peso 0.25xpx 0.38 yuan (the original forecast is 0.10ppm 0.25xpx 0.38 yuan), and the corresponding PE is 148-42-27 times.
Risk hint: the development of smart home business is not as expected.