Event

The company plans to raise no more than 3.05 billion yuan through a non-public offering of no more than 400 million shares to no more than 5 specific investors (including Mr. Zhou Dehong, the company's controlling shareholder and actual controller). Actively distribute the field of aviation equipment. Mr. Zhou Dehong promised that the number of shares to be subscribed for would not be less than 15% of the total number of shares finally determined in this non-public offering. After the completion of the issue, the status of the company's controlling shareholder and actual controller has not changed.

Brief comment

1. Two-wheel drive at home and abroad, the traditional business is advancing steadily

Basically complete the domestic layout, the company name change shows the company's "going global" strategy. The company's main business is the production, sales and R & D of general-purpose modified asphalt, road petroleum asphalt and other high-grade highway materials, and the market demand mainly comes from the new construction and maintenance of high-grade highways, bridges and other infrastructure. From the point of view of the national layout, on the one hand, the company has completed the strategic deployment in the northwest and Tibet, and the scope of business radiation basically covers the whole country; on the other hand, the infrastructure construction in the central and eastern regions tends to be saturated. after the construction peak, the demand for professional asphalt for road maintenance is increasing day by day, and the company is actively developing the maintenance market. From the perspective of international layout, based on the national "Belt and Road Initiative" policy, the company encouraged domestic steel, non-ferrous, building materials and other excess capacity to go out, and the company actively expanded its overseas business. signed a memorandum with the Ministry of Development of the far East of the Russian Federation, the Highway Administration, the Belarusian State Petrochemical Company and Naftan Refining Company to actively participate in its infrastructure construction. In June 2015, the company changed its name from Poly Asphalt to Poly International. Highlight the company's "going out" development strategy, the first three quarters of the results forecast return to the mother net profit of 50.61 million-55.67 million yuan, a year-on-year increase of 0% 10%. We predict that the company's traditional asphalt business will grow steadily based on domestic and international two-wheel drive, with a net profit of about 80 million for the whole year, and is expected to reach 88 million yuan in 2016.

2. raise funds privately and "bring in" to create a rookie of aviation equipment.

The company's non-public offering raised no more than 3.05 billion yuan, aviation equipment industry investment project plans to invest 1.55 billion yuan, helicopter financial leasing project plans to invest 1 billion yuan, supplementary working capital 500 million yuan. The company actively distributes the field of aviation equipment and will create a new performance growth point with the strong support of the national aviation industry policy. The specific plans are as follows:

The practical demand of DV series engines is huge. Piston aero-engine is the main power platform of general aviation. OKBM's DV series is used in drones and light piston-powered aircraft and helicopters and can use different fuels such as aviation gasoline, kerosene and diesel. DV 400is mainly used for piston fixed-wing aircraft and is an ideal power for the new Mi-34S1 helicopter and the new domestic Junior Education Seven aircraft. At the same time, China has long exported aviation equipment to the third World countries, such as Chu Jiao 6, but it usually does not have the oil refining capacity of aviation gasoline. The choice of multi-fuel for DV series engines will effectively solve the problem of fuel security. It is an ideal power platform for military and civil light aircraft markets in China and most developing countries. It has a large realistic demand in China, Russia and related importing countries. It is estimated that the demand will reach more than 2000 units in 2-3 years, with an output value of 300 million US dollars. The price of DV engines is about 1.4 million yuan per unit, and the cost of each unit is estimated to be about 800,000 yuan per unit. The annual production capacity of Russian factories is 60 units; the annual production capacity of domestic factories is 300 units, and it is expected that 80 units will be produced after the middle of next year. According to the corresponding equity ratio, we expect that the operating income of DV series aero-engines will be 196 million yuan and the net profit will be 51.3 million yuan in 2016.

Helicopter financial leasing is promising. In recent years, the scale of helicopters in China has been growing. At the end of 2014, China had 524 civil helicopters, an increase of 35% over the same period last year. With the release of the 13th five-year Plan and low-altitude opening up of the General Aviation Development Plan launched by the Civil Aviation Administration of China, China's civil helicopters will usher in explosive growth. It is estimated that the number of civil helicopters in China will reach 2500 in 2020, with an average annual compound growth rate of 30%. At present, the company is discussing helicopter trade cooperation with Russian helicopter Co., Ltd., and plans to purchase helicopters such as Shanghai Chengyi Financial Leasing Card-32, Card-226T, Ansat, Mi-34S1 and lease them to domestic customers through a wholly-owned subsidiary. It is expected that 14 helicopters will be needed in the near future, and the annual demand will reach more than 20. The profit of each helicopter is expected to be about 10 million. We expect the company's helicopter business net profit to reach 200 million yuan in 2016.

In addition, taking import trade as a starting point, the company will gradually deepen its cooperation with Russian helicopter companies, gradually distribute technical services, introduce production and R & D improvement, and further enhance technical barriers and profitability.

3. Profit forecast

In 2015, the company raised funds through non-public offerings to cut into the field of aviation equipment, and the growing demand for air transport and general aviation services created a huge market space for the development of aviation equipment manufacturing industry. by establishing a deep cooperative strategic relationship with Russia, the introduction of its advanced technology will promote the development of China's aviation industry, which is in line with the national policy guidance. Based on the private offering of 400 million shares (upper limit), the total share capital of the company will reach 1.322 billion shares. We expect that the company will continue to focus on the traditional main business in 2015, with a net profit of 80 million. In 2016, the aviation equipment industry will begin to contribute to its performance, with a total net profit of 339 million yuan in 2017. the EPS in 2017, 2016 and 2017 is 0.06,0.26,0.41 yuan, respectively, and the corresponding dynamic price-to-earnings ratio is 211,49 and 31 times, respectively.