Non-public offering raised 800 million yuan to invest in Yiwu lightweight base

The company announced a non-public offering plan on June 13, in which no more than 52 million shares will be issued, no more than 10 specific investors will be issued, and the total amount of funds raised will not exceed 800 million yuan. after deducting the issuing expenses, all the funds raised will be used for the "Automobile lightweight Composite parts-Yiwu production Base Project".

The company's fund-raising will be used to invest in the construction of automotive composite lightweight parts production base project, to provide customers with cost-effective solutions from product design, equipment manufacturing, mold development to product production. The construction of the project is located in the green power town of Yiwu, which can be close to serving Geely new energy vehicles and other complete vehicle factories in Hangzhou Bay area. After the project reaches production, the payback period of investment is 5.8 years (after tax), and the internal rate of return (after tax) is 21.55%.

Carbon fiber and glass fiber material technology is the leader in the industry, automobile lightweight is imperative and has a broad prospect

Automotive lightweight material technology has many advantages, such as reducing fuel consumption, reducing exhaust emissions, enhancing range ability, improving vehicle maneuverability and safety and so on. When the new energy battery encounters the bottleneck of energy density, it has become the most effective way to solve the problem of battery life of energy vehicles. In the future, with the gradual popularization of new energy vehicles, automobile lightweight is imperative.

Compared with the traditional process, the process link of carbon fiber composite is less, the raw material cost shows a downward trend, the production cost will be gradually reduced, and the large-scale application has industrial feasibility, which will become the future direction of the lightweight field of new energy vehicles. According to the announcement, the company is only mastered glass fiber, carbon fiber composite full-process manufacturers, with the only carbon fiber auto body parts production line, will take the lead to benefit.

Bind the whole vehicle factory to build a win-win cooperation pattern, and enter the growth prospect of Geely and CATL supply chain.

The company's carbon fiber and glass fiber composite materials can be used for automotive outer panels, structural components, battery covers and other parts, with the increasing demand for lightweight automotive parts, according to the Securities Times, the company's annual report and company announcement, Geely, Ningde, Yutong, BAIC, Volvo and other entire vehicle factories have expressed cooperation intention, we believe that by binding large-scale automobile enterprises, it is helpful to achieve rapid product volume.

Among them, Haiyuan and Geely recently signed a strategic cooperation agreement for all-round cooperation in the field of automobile lightweight. We believe that the strategic cooperation between the company and Geely will achieve a win-win situation; at the same time, according to the company announcement on December 22, 2017, Geely MPC-1 project is about to enter the stage of mass production, according to the company announcement, Haiyuan has received a mold release instruction for Geely MPC-1 project, which is expected to be mass launched in 2018 and expected to achieve sales revenue of 450 million yuan in its life cycle.

Break into the supply chain of battery cover in Ningde era. At present, Ningde is carrying out all-round replacement of battery cover composite materials, while Haiyuan is one of the few domestic enterprises that have mastered the technology of carbon fiber composite production line. Ningde era and Haiyuan will cooperate deeply in the field of battery panels. According to the company announcement on December 30, 2017, the Ningde era battery box cover project is expected to enter the stage of mass production in 2018, with a total sales revenue of 150 million yuan in its life cycle.

Profit forecast: we estimate that the return net profit of the company from 2018 to 2020 is 90 million yuan, 180 million yuan and 346 million yuan respectively, and the corresponding EPS is 0.35,0.69,1.33 yuan respectively. At present, it is optimistic about the company's development prospects in the field of automobile and construction lightweight in the future, and gives it a "buy" rating.

Risk hint: the future strategic cooperation agreement deals with the possibility of changes in the implementation of matters; the trend of automobile lightweight is less than expected.