Main points of investment:
Firm transformation of intelligent manufacturing, layer by layer. The company's original main business is the production, manufacturing and real estate development of spandex and coated yarn. In July 2018, the company spun off spandex assets, and the real estate business will gradually shrink, focusing on intelligent manufacturing business in the future.
In terms of intelligent manufacturing, in May 2017, the company acquired Tianjin Fuzhen, a front-line integrator of body-in-white intelligent welding system, and took the first step of transformation, and then in September, Shanghai Wayao Robot was established to lay out an one-stop solution platform. In September and October 2018, the company announced that it planned to acquire Zhejiang Rafer Mechanical and Electrical Company and Germany NIMAK Company through subsidiary cash respectively, so as to further strengthen the intelligent manufacturing industry and strive to create "intelligent robot welding equipment products + robot one-stop solution platform + intelligent welding production line system integration".
The industrial chain system of.
Tianjin Fuzhen-Raffle Mechatronics: China's leading body-in-white intelligent welding system integrator, strong combination.
Tianjin Fuzhen is one of the few domestic vehicle body intelligent manufacturing solution suppliers that can fully provide four major systems: flexible body assembly, flexible body soleplate, flexible body side manufacturing system and flexible door cover manufacturing system. With strong industry competitiveness At present, the main customers include Changan, Chery Jaguar Land Rover, Volvo, Changan Ford, Shanghai Volkswagen, NIO Inc. Automobile and other well-known traditions as well as new energy vehicle manufacturers.
Zhejiang Riverco ploughs overseas brands, accounting for more than 40% of overseas revenue, and has formed a more in-depth cooperative relationship with Renault in France and ABB in Shanghai. The company plans to acquire Rafe Electric with 566 million yuan in cash through its subsidiary (60% holding). The performance commitment is 2018-2021, and the net profit of the parent is not less than 36 million yuan, 47 million yuan, 5750 yuan and 67.5 million yuan. We expect the transaction to be completed by the end of 2018.
With the combination of strong and strong, the synergistic effect is significant. Tianjin Fuzhen and Rafe Mechatronics are highly complementary in customer coverage, and we expect that this acquisition will further deepen the company's technology and talent reserve in the field of welding and assembly business. enhance the company's market expansion and sustainable development capabilities in areas such as high-end intelligent equipment.
NIMAK: the world's leading industrial connection equipment manufacturer. At present, NIMAK's main products are robot welding pliers, robot welding machines, robot glue coating machines and other automatic equipment, product applications include automobiles, household appliances, aerospace and so on, with more than 50 years of rich technical experience in the industry. If the acquisition is completed, we expect to promote the company to actively respond to the cutting-edge developments and development trends of the automotive industry, especially in the field of body-in-white, and enhance the company's product, technological competitiveness and risk resistance in the future.
Profit forecast and valuation. We estimate that the net profit of the parent company from 2018 to 2020 is 124 million yuan, 171 million yuan and 224 million yuan, respectively, and the corresponding EPS is 0.20,0.28,0.37 yuan respectively. With reference to the comparable company valuation, the company was given an PE of 30-35X in 2019, with a reasonable value range of 8.40-9.80 yuan, covering it for the first time and giving it a "better than big city" rating.
Risk hint. The risk of declining demand in the industry and the risk of declining profitability as a result of intensified competition.
