This report is read as follows:
Shaanxi State Asset intends to hold 25-29.99% of the shares in the company and become the actual controller; it has pledged 6 billion financial support within five years, of which 600 million 19Q1 is in place. Short-term pledge risk relief, long-term financial support is conducive to project promotion.
Main points of investment:
Conclusion: Shaanxi Gold Fund, in conjunction with Zhongshan Nuclear Corporation, intends to hold 25-29.99% of the shares of the company and become the actual controller, and has pledged 6 billion financial support within 5 years, of which 600 million is expected to be 19Q1. Short-term equity pledge risk relief, long-term capital and policy support is conducive to the promotion of new projects. Based on the impact of raw material price increases and income recognition progress, the EPS for 2018-20 is reduced to 0.16 yuan (- 0.08) / 0.25 (- 0.14) / 0.35 (- 0.14) yuan, given 20 times PE for 19 years, and the target price is reduced to 5 yuan.
The framework agreement is divided into control right, equity transfer and financial support. ① Shaanxi Gold Fund, in conjunction with China-Shaanxi Nuclear Industry, intends to become the actual controller through agreement transfer, subscription for additional shares and acceptance of entrusted voting rights, and holds 25-29.99% shares. ② has pledged to provide no less than 6 billion of financial support through industrial funds, loans and guarantees within 5 years, of which 600 million is in place in 19Q1 in accordance with market-oriented interest rates, and declare various preferential policies for the company in Shanxi Province to give full play to government resources and industrial advantages.
The entry of state-owned assets to alleviate the pledge risk, financial and policy support is conducive to the promotion of new projects. ① 's introduction of state-owned assets transferee's current real controller equity can alleviate the equity pledge risk and liquidity dilemma. ② company plans to promote agricultural environmental protection industrial park, which needs a lot of funds in the future. Shaanxi state-owned assets promised to provide funds and policy support, which is conducive to the promotion of new projects in the future. ③ transferee in Shaanxi nuclear and the company has a large business span, the future actual operation is still the responsibility of the current actual controller Ji Wei, Ji Weidong, before the strategy will continue.
Be optimistic about the energy EPC project and the two-wheel drive of agricultural industrial park. In the short term, the increase in raw material prices and the progress of EPC revenue recognition affect short-term performance; in the long run, in the field of energy EPC projects, the domestic waste heat recovery potential is huge, and the acquisition of Shanghai transport capacity extends the supply chain layout and improves qualification capacity; in addition, after obtaining financial and policy support, it will take Gaoyou Linyuan as the center to promote rural industrial parks to the whole country in the future.
Risk factors: order promotion, new project promotion is not up to expectations, control transfer uncertainty.