Set up a joint venture with Diadu Information to broaden the sales channels of car accessories with the help of Tuhu car maintenance network.
The company announced that the subsidiary company Kangda Accessories Co., Ltd. has jointly funded the establishment of Jiangsu Kanghu Automotive supplies Co., Ltd., accounting for 51% of the company, which mainly sells automobile interior decoration products at 2C end and Tuhu car maintenance network under appendix information. It is the first car maintenance B2C e-commerce platform in China, mainly engaged in tires, oil, car beauty and other products and services, covering 21 provinces and cities. The company is responsible for product design and production, information is responsible for the construction of third-party platform sales channels, and provides warehousing, logistics and installation services according to the needs of the joint venture company, on the one hand, broaden the company's automobile interior sales channels; on the other hand, make use of the rich consumer big data of Tuhu car maintenance network to optimize the design and sales of automobile interior products, complement each other and open a new space in the 2C market.
Expand from the first class to the second level, tap the rear market space of the automobile.
The company is the leader of the domestic automobile fabric seat cover industry, which used to sell mainly to the automobile mainframe factory, but now through cooperation with Tuhu car maintenance network, the company has entered the huge domestic market with a stock of nearly 200 million vehicles. In the face of the more personalized needs of the secondary market, the R & D company established in 2016 is expected to actively guide the forward-looking design of products and give full play to the quality advantages of the company's automotive interior products in many aspects, such as material, environmental protection, comfort, intelligence and so on. with the help of partners' sales channels and service experience, we will jointly establish a brand of automotive interior decoration in the rear market. It is expected that the growth rate of the company's car interior business in 2017 is expected to continue to be higher than that of domestic car sales.
Expand the related business of new energy vehicles by extension on the platform of broad-minded new energy investment
In June 2016, the company changed Kanda Electric Power Investment into Kanda New Energy Investment Company, started the strategic transformation of new energy business, optimized and adjusted existing assets, and combined with the general trend of "electrification, lightweight and intelligence" in the future development of automobiles, actively layout the core parts business related to new energy vehicles. With the introduction of professional investment team, the company will lay out the new energy vehicle market and cultivate new profit growth points through various forms of foreign investment cooperation.
Optimize the use of funds and appropriately control the scale of photovoltaic power stations
At the end of 2016, the company accumulated grid-connected photovoltaic power station 410MW, generating 524 million kilowatt-hours of electricity, power business income of 430 million yuan. Due to the pressure of photovoltaic subsidies and power constraints, the company will optimize the use of funds, no longer expand investment in power plants, and has begun to write off some of the previous power plant project companies to withdraw funds.
The seventh batch of subsidy catalogue is being organized and declared; policies such as the minimum utilization hours of renewable energy and green permits are gradually implemented, and the consumption of power stations in the western region is expected to be linked.
Investment suggestion: the company is expected to achieve net profit of 370 million, 460 million and 495 million from 2017 to 2019, up 22%, 25% and 7% over the same period last year. EPS 0.25,0.31,0.33; corresponding to P/E22 times, 18 times, 17 times. Give a "buy" rating. The company will increase its offering price by 6.52 yuan in 2016; with the increase announced by major shareholders at the end of March 2016, the stock price is already lower than the fixed increase and close to the price of major shareholders.
Risk hint: there may be a low expected risk of photovoltaic abandoning optical power limitation to improve, or there may be a risk that the business development of new energy vehicles does not meet the expectations.