The company intends to issue convertible bonds. The total amount of convertible bonds to be issued by the company shall not exceed 1.248 billion yuan. The funds raised will be mainly used for the "Technical renovation and upgrading of Container handling equipment production Base" and "Phase II Project of Chongqing New Runxing High-end equipment Manufacturing Industry Park". The amount of funds to be raised by the two is 2.54 yuan and 620 million yuan respectively.
The automatic container handling equipment has entered the volume stage, and the technological transformation and upgrading strengthen the manufacturing advantage. In order to improve the service quality and management level and reduce the operating cost, the investment in domestic port automation construction is gradually increasing.
The automation of yard operation system is the basis of the development of automatic wharf, which mainly adopts full-automatic high-speed track crane technology. According to our estimation, based on the container throughput of 226 million TEU of domestic ports in 2018, the demand for automatic track cranes in domestic ports is about 5424, corresponding to a market space of nearly 100 billion yuan. In March 2019, the company signed an order contract with Singapore Port Group for 28 fully automatic rail container leading cranes with outstanding brand advantages. The funds raised by the convertible bonds will be used for the technical transformation and upgrading of the container handling equipment production base, the manufacturing capacity of the products is expected to be further strengthened, and it is expected that the market share of the company's automatic track cranes will be further increased compared with ordinary rail cranes.
5G new commercial opportunities drive the growth of existing CNC machine tools with consumer electronics / communications as the main application; raise investment in the second phase of Chongqing manufacturing base, and the strategy of medium and large machine tools will be further promoted. 5G commercial enterprises have entered the acceleration period, and it is estimated that more than 500000 new 5G base stations will be built in 2020, and the demand for processing precision components such as radiators will grow rapidly. The company has developed a series of vertical machining centers such as 850HII and 1066HC for the processing of 5G base station heat sink, which has covered the first-and second-class suppliers of major domestic communication equipment enterprises. On the consumer electronics side, 5G is expected to drive the trend of replacement. High-speed drilling centers for the production of metal frames are expected to grow.
In addition, the company continues to promote the development strategy of medium and large-scale high-precision machine tools, Chongqing Phase I "annual production of 5000 CNC machine tools" project, site construction has been completed; this second phase of the project is expected to reduce the external dependence of machine tool core components, further enhance the company's CNC machine tool business "core components-whole machine-solution" comprehensive competitiveness, long-term growth is expected.
Profit forecast and valuation. It is estimated that the return net profit of the company from 2020 to 2022 is 4.28,5.50 and 716 million yuan respectively, and the corresponding EPS is 0.42,0.55,0.71 yuan per share respectively.
Risk tips: stainless steel supply chain business integration development is not as expected; fully automated track crane sales are not as expected; CNC machine tool business growth is not as expected; this paper estimates are based on certain assumptions.
