The civil explosion industry is in the doldrums, and the leading companies are expected to integrate the market
As the macro-economic growth slows, the demand of the explosion industry also continues to decline. At present, the domestic civil explosion industry market is relatively scattered, as the industry as a whole enters a downturn, the civil explosion industry will enter the wave of integration in the next few years. Since 2015, civil explosive enterprises have accelerated the pace of integration and reorganization through horizontal merger and development, and the trend of large-scale and intensive management is becoming more and more obvious. At present, the company has a total production capacity of 264500 tons of explosives, ranking in the leading position in the industry. the company is expected to integrate the market, increase its market share and become bigger and stronger by virtue of its leading position in the industry.
Be sure to increase the number of main businesses to promote industrial upgrading
The company plans to add 1.105 billion yuan to the main business, promote transformation and upgrading, focus on expanding blasting engineering services, actively expand mine engineering general contracting and mine ecological restoration business, and create the integration of blasting services. At the same time, the company strengthens the intelligent construction, establishes the civil explosive wisdom factory, the intelligent production line, and the digital civil explosive industry chain project. The company chooses to increase its main business when the industry is in the doldrums, which demonstrates the company's absolute confidence in the upgrading of the main business.
Invest in Beijing Lightyear and enter into the field of intelligent robot
The company invested 50 million to acquire 14.44% equity of Beijing Lightyear. The Turing robot of Beijing Lightyear is the bridge between users and the Internet. after large-scale popularization, Turing robot may become an entry-level platform, grafted various service providers to provide users, and the potential value-added services are of great commercial value. at the same time, the company will actively explore the application and integration of artificial intelligence in the civil explosion industry with Beijing Lightyear to realize the intelligence of civil explosion manufacturing. On the other hand, investing in Lightyear will help the company to develop new business growth points, optimize the company's industrial structure, and provide strong support for the company's future development strategy.
Participate in the establishment of investment funds to promote business transformation
The company contributed 90 million yuan, accounting for 30% to participate in the establishment of industrial investment funds. The industry fund mainly invests in artificial intelligence, robotics, big data and other fields, which is highly consistent with the company's transformation and development strategy. In May 2016, the company bought a stake in Tianjin Fengshi Interactive Technology Co., Ltd. with its own capital of 18 million yuan. Fengshi Interactive is a provider of visual interaction technology in the field of artificial intelligence, mainly to VR/AR, smart cars, smart televisions and smart homes.
Profit forecast and valuation
Taking into account the current civil explosion industry is still in a low operation, and the company as the industry leader, strong major shareholders, is expected to accelerate integration in the industry downturn, bigger and stronger. On the other hand, the company's transformation is clear and steady, and it is also worth looking forward to seeking new profit growth points in emerging industries in the future.
We estimate that the EPS of the company from 2016 to 2018 will be 0.11,0.13 and 0.15 yuan respectively, and the corresponding PE will be 77.96,70.50 and 58.60 times respectively.