Events:
The company issued a "progress announcement on the company's employee stock ownership plan in 2019".
Comments:
1. With the implementation of the employee stock ownership plan, shareholder Ganjiang has increased its holdings, demonstrating confidence in future development:
On November 9, 2019, the company issued an announcement to terminate the first phase of the company's employee stock ownership plan, and at the same time issued the "company 2019 employee stock ownership plan (draft)". The total number of employees participating in the current employee stock ownership plan is 7, and the total number of employees participating in the current employee stock ownership plan is no more than 25 million (with "copy" as the subscription unit, each share is 1 yuan). According to employee changes and annual assessment, the employee stock ownership plan management committee Adjust the list and allocation proportion of employees participating in the shareholding plan, with a lock-up period of 12 months. According to the latest announcement of the company, from November 19, 2019 to December 17, 2019, the employee shareholding plans to buy a total of 557494 shares of the company through collective bidding in the secondary market, with an average transaction price of 8.97 yuan per share. In addition, on November 15, 2019, the company received a notice from Jiangxi Ganjiang Rongchuang Investment Co., Ltd., which plans to increase its stake in Wanze Industrial Co., Ltd. on November 15, 2019. Ganjiang Rongchuang plans to increase its stake in the company at a price of no more than 15 million yuan in the next six months. no, no, no.
2. Withdraw from the real estate business, transform the dual main business of microecological agents and superalloys, and complete a major asset exchange in March 2019, with its 100% equity stake in Changzhou Wanze Tianhai and Beijing Wanze Bixuan equity. 100% equity held by Wanze Group and Wanze Pharmaceutical Investment in Inner Mongolia will be replaced. The company's main business has been changed from real estate development and sales to microecological agents, superalloy research and development, production and sales. The performance commitment of Inner Mongolia Shuangqi is 95.58 million yuan, 112.78 million yuan and 119.5 million yuan in 19-21 years. In July 2019, the company issued an announcement promising that the real estate business of the company and its subsidiaries within the scope of the consolidated statement had been cleaned up, and that the company and its subsidiaries within the scope of the consolidated statement would no longer engage in real estate business and would not add new investment in real estate business. After that, the company continued to clean up the equity of the participating company, transferring 30.6% of Shantou Liantai's equity, and announced the transfer of 10% of Xi'an Sun Hung Ye in September 2019, further withdrawing from the real estate business and withdrawing funds quickly to provide financial support for the company's transformation and development of superalloy business.
3. Self-raised funds are actively invested, and the superalloy business continues to break through. Superalloy is a capital-intensive industry. As of September 30, 2019, the company has continued to invest about 1.285 billion yuan in superalloy business with its own funds. The company has been seizing the opportunities for the development of the superalloy industry, and has set up R & D and engineering centers in Shenzhen and Changsha, and superalloy industrialization bases in Shenzhen-Shantou Special Cooperation Zone and Fengxian District in Shanghai. Wanze Central South Research Institute as a platform for basic technology research and development, Shenshan Wanze precision casting facilities carry out engineering process research and development in the process of industrialization. In terms of industrialization, Shanghai Wanze precision casting is positioned for the industrial production of superalloy equiaxed crystal blades, equiaxed crystal turbines and titanium-aluminum alloy components, mainly for the target market of gasoline and diesel turbocharger impeller equiaxed crystal blades. The positioning of Shenshan Wanze precision casting is the industrial production of superalloy master alloy, superalloy powder and precision casting blades. the products are oriented to military and civilian fields, mainly in mid-and high-end markets such as aero-engines and gas turbines.
From January to September in 2018 and 2019, the company's superalloy business achieved income of 9.2441 million yuan and 7.2863 million yuan respectively, but due to the early stage of industrialization, the income scale is too small to generate profits, but a series of breakthroughs have been made. Shanghai Wanze precision casting has been listed as a qualified supplier by AVIC Commercial Aeroengine Co., Ltd., Liaoning Fusan Gas Turbine Co., Ltd., and has obtained an order for a certain type of blade of AVIC Commercial Aeroengine Co., Ltd. has been listed as a qualified supplier of CRRC Corporation, and its products are being trial-produced. In terms of foreign customers, Shanghai Wanze Precision casting has obtained the qualification of first-class supplier of GE transportation, and has also successfully obtained the supplier qualification of auto parts manufacturers such as BergWarner and Dr. Mahler.
4. Performance forecast:
We expect the company's performance from 2019 to 2021 to be 85 million, 127 million and 174 million respectively. Give a rating of "prudent recommendation".
Risk hint: the progress of superalloy research and development is lower than expected, and the industrialization process is slow.