The company plans to carry out financial leasing business with China Railway Financial Holdings, with a total amount of no more than 50 million yuan, which will help the company to meet the needs of normal production and operation, further broaden financing channels, reduce financing costs, and improve the efficiency of the use of funds. On January 22, 2021, the company issued a notice to carry out financial leasing business and related transactions with China Railway Financial Leasing Co., Ltd., intending to carry out financial leasing business with China Railway Financial Leasing Co., Ltd. the total financing scale shall not exceed RMB 50 million. The various business prices of both parties (such as financing interest rate, etc.) refer to the market price and are determined through consultation between the two parties. The business time shall not exceed 1 year from the date of lease. The company and China Railway Financial Holdings are under the control of China Rallway, and this transaction constitutes a related transaction. This transaction will help the company to meet the needs of normal production and operation, broaden financing channels, and provide financial guarantee for sustainable development.
The company decided to appoint Mr. Li Hong as its chief accountant. Mr. Li Hong has the necessary professional or industry knowledge to perform his duties, and is able to meet the requirements of the corresponding position in the company, which is conducive to the development of the company.
1) the board of directors recently received a written resignation report from Ms. Wang Yulian, the head of finance of the company, who applied to resign as head of finance of the company due to work reasons. Ms. Wang Yulian's original term of office was from May 3, 2018 to the expiration of the third session of the Board of Directors. After resigning from the above post, she will continue to serve as a director of the third session of the Board of Directors and a member of the Audit and risk Management Committee. As of January 22, Ms. Wang Yulian directly holds 130000 shares of the company, accounting for 0.05% of the company's total share capital, and her shares will be managed in strict accordance with relevant laws, regulations and relevant commitments. 2) on January 22, the board of directors of the company decided to appoint Mr. Li Hong as the chief accountant of the company for a term of office from the date of deliberation and adoption at the thirtieth meeting of the third session of the board of directors to the expiration of the third session of the board of directors. Mr. Li Hong served as Vice Minister of Finance Department of China Railway Shanghai Engineering Bureau Group Co., Ltd. from November 2010 to June 2016, and Minister of Finance Department of China Railway (Shanghai) Investment Group Co., Ltd from July 2016 to December 2020. At present, it does not hold shares in the company and has no relationship with the company, controlling shareholders, actual controllers and other shareholders, directors, supervisors and senior managers who hold more than 5% of the shares.
Investment advice: maintain the overweight rating. It is estimated that the company's net profit from 2020 to 2022 will reach 0.77 yuan, 1.01 yuan and 134 million yuan respectively, an increase of 14%, 31% and 33% over the same period last year, corresponding to price-to-earnings ratios of 44, 32 and 24 times.
The prefabricated construction industry is currently supported by policies, and the industry is in a period of high growth. The company's Jiangsu Suqian production base was successfully put into production in the first half of 2019, improving the capacity layout. The company has strong technical and order-taking ability; after the controlling shareholder becomes China Rallway, it is expected to achieve business coordination.
Risk hints: policy support in the prefabricated construction industry is lower than expected; competition in the industry intensifies; downstream demand for prefabricated construction is lower than expected; raw material costs grow higher than expected; China Rallway brings lower-than-expected business support to the company; loss or aggravation of impairment of assets such as bad debts.
