Incident: The company recently signed an “Investment M&A Intent Agreement” with four shareholders of Beijing Shenzhou Flight Technology Co., Ltd. to acquire 70% of the shares of the target company held by the transferor in cash. Shenzhou Aviation has comprehensive technical capabilities and product systems, and is an excellent target in the field of military computers: the company was founded in 2004 and is a national high-tech enterprise participating in military informatization. Its product line includes military computers, military bus testing and simulation equipment, signal processing and navigation, industrial automation data acquisition and testing platforms, etc. Its advantages are: 1. The company has outstanding technical strength and core competitiveness in the R&D and design capabilities of military industrial computers, embedded computers, and military buses; 2. The company's products have been approved by the military, and some products have been used in military aircraft. Armored vehicles, ships, navigation, and guidance weapons are in various fields; 3. The company is a member of the Intel Internet of Things Alliance and has certain technology and product reserves in the field of industrial automated collection and monitoring, and is expected to open up new market space in the field of industrial automation. Join forces with Chengdu Fourier to enhance the scale and competitiveness of military business. Shenzhou Aviation and Chengdu Fourier, a wholly-owned subsidiary of the company, have good synergy: technologically, both companies have many technical points in military information technology, and can share technical data and technical solutions; in terms of products, both companies have product layouts in the fields of military avionics products, missile guides, drone mission payloads, etc., and are expected to integrate to form larger product solutions in the future; at the market level, the two companies can take advantage of each other's market advantages to expand their respective product sales channels. Therefore, we believe that if the company can successfully acquire Shenzhou Airlines, it will help increase the scale of the military industry business and expand its core competitive advantage. The performance is impressive for gambling and is expected to bring significant performance improvements to the company: the Shenzhou Airlines transferee promised not to be less than 30 million yuan, 40 million yuan, and 50 million yuan for non-net profit from 2018 to 2020, respectively. A total increase of 120 million dollars in profit over three years can significantly increase the company's profit level. Half of the transfer amount will buy the company's shares from the secondary market, which is conducive to enhancing market confidence: the “Equity Transfer Agreement” stipulates that 50% of the transfer amount after payment of income tax by the transferor will choose to purchase special information stocks through the secondary market within 6 months. After the 2018, 2019, and 2020 target company's annual audit reports come out, 1/3 of the sales restrictions will be lifted separately on the premise that performance promises have been fulfilled. Therefore, after the acquisition is completed, the transferor will spend about 150 million dollars to purchase the company's shares, which is conducive to supporting market confidence. Profit forecast and investment rating: We are optimistic about the overall impact of the company's military business after the merger and acquisition of Shenzhou Aviation. We expect the company's EPS for 2018-2020 to be 0.58 yuan, 0.72 yuan, and 0.89 yuan, corresponding to PE 12/10/8 X, giving it a “buy” rating. Risk warning: Dongzhi Technology's foundry business faces the risk of gross margin falling due to intense competition, and the risk of a rapid increase in accounts receivable.
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特发信息(000070)点评:拟并购军用计算机优秀标的 进一步强化军工信息化业务
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