Issue corporate bonds to optimize the debt structure and promote the stable development of the company. The company announced on December 19 that the company intends to publicly issue corporate bonds to QFII. The total size of the bonds to be issued in phases will not exceed 900 million yuan, with a maturity of 3 years. After deducting the issuance expenses, the funds raised in this issue are intended to be used to repay the stock debt and replenish the working capital. We expect that corporate bonds will help to optimize the corporate debt structure, reduce financial costs and promote the steady and healthy development of the company.
A small amount of investment to participate in operation and maintenance, to promote the company's strategic upgrading. The company announced on December 19 that the company and its subsidiary Shentie Operation intend to form a consortium with China Electric Power Construction and its related parties to bid for the PPP project of Tianjin Metro Line 4. The company and its subsidiaries intend to invest no more than 140 million yuan, accounting for 2% of the project company. If the project wins the bid, the company will undertake part of the mechanical and electrical equipment supply of the project and the operation and maintenance business of Tianjin Metro Line 4, and the company will fully participate in the whole line operation and maintenance work through a small amount of investment. help the company to achieve the strategic upgrading of multi-line professional operation and maintenance service providers.
Won the bid for the Sanyo railway project to support steady growth in performance. On December 6, 2019, the board of directors passed a motion that the company will form a consortium to participate in the general contract bidding for the construction of some sections of Sanyo railway and the reconstruction of some sections of Sanyo railway. The total bidding amount of the project is about 9 billion yuan, of which the equipment part is about 1.84 billion yuan and the construction part of the project is about 7.1 billion yuan. At the same time, the company will also provide intelligent operation and maintenance equipment and engineering consulting services for the whole line during the construction phase, so as to lay a solid foundation for the follow-up operation and maintenance services of Sanyang Railway. It is expected that this project will be implemented within the three-year construction period, which will fully benefit the performance development of the company in the past three years.
Investment suggestion: we expect the company's net profit from 2019 to 2021 to be 4.43,5.82 and 734 million yuan respectively, and the EPS is 0.16,0.21,0.26 yuan respectively.
Risk tip: the prosperity of the industry is not as good as expected, and the progress of rail transit construction is not as expected.
