Event: the company announced on February 12 that the board of directors approved the acquisition of 96 patents authorized or applied for by Puyang Nongfa and Woye Agricultural Machinery, with a transaction amount of 5.0494 million yuan. and agreed to authorize Henan Xingguang, a wholly-owned subsidiary.
The acquisition of patent rights for Puyang Nongfa and Woye agricultural machinery will continue to promote the layout of the whole mechanization industry chain: the company's acquisition of patent rights related to Puyang Nongfa and Woye agricultural machinery will expand the company's business to four types of new businesses, such as self-propelled peanut picker, corn harvester, wheeled grain combine harvester and self-propelled silage harvester, among which peanut harvester is taken as the first peanut exporter in the world. The sown area accounts for 1 / 6 of the world, but the harvest link is still the deficiency and weak link in the whole process of peanut production mechanization. at present, the yield of peanut machine in the country is only about 30%, which has a lot of room for improvement. After the completion of this acquisition, the company will have harvesters for grain crops such as rice, wheat and corn, as well as harvesters for cash crops such as cotton and peanuts, and will cover major agricultural production links such as rotary ploughing, harvesting, baling and drying. There is a more complete product system in the overall mechanization and whole-process mechanization of food crops and major cash crops. It can adapt to the batch and complete procurement needs of the emerging agricultural operators.
With the release of opinions on the implementation of the rural revitalization strategy, the agricultural machinery industry is expected to benefit directly: the 2018 Central Committee document "opinions of the CPC Central Committee and the State Council on implementing the Rural Revitalization Strategy" points out that it is necessary to promote the transformation and upgrading of China's agricultural machinery industry, strengthen scientific research institutions and equipment manufacturing enterprises to jointly tackle key problems, further improve the level of localization of bulk crop machinery, and speed up the research and development of cash crops, aquaculture, hilly and mountainous agricultural and forestry machinery. Develop the manufacture of high-end agricultural machinery and equipment. The agricultural machinery industry is expected to directly benefit from the rural revitalization strategy, and policy support is expected to be increased.
With the increase of the concentration of shuffling in the industry, the company is expected to stand out: since 2004, the agricultural machinery industry has experienced a "golden decade" of development, and the overall market size has increased 10 times. In recent years, the growth rate of the industry has slowed down, competition has intensified, and the industry has entered a reshuffle period, especially in the context of the current stricter environmental protection, the survival threshold of enterprises has been raised, and the concentration of the industry is expected to continue to improve.
As a private enterprise, the company has great flexibility in operation, management and incentive mechanism, and is a small number of agricultural machinery enterprises with listed company platform, which is expected to stand out from the industry.
Profit forecast and investment advice: we expect the company's net profit for 2017-2019 to be 45.15 million, 72.91 million and 116 million, respectively, corresponding to 75 times, 47 times and 29 times PE, respectively, maintaining a "buy" rating.
Risk hint: competition in the combine market intensifies, and the market expansion of new products falls short of expectations.