Announcement content: on December 29, 2014, Hongyuan Company signed an agreement with Zhou Xing of South Korea to increase investment in Variety Photovoltaic in an equal proportion to transform its production line into a photovoltaic production line for automobile skylights. The total capital increase is US $12.6 million, Variety shares are contributed by US $8.4 million in cash or equivalent RMB, and South Korea's Zhou Xing is contributed by US $4.2 million in cash. Both parties will pay in three installments, paying at least 20% of the capital increase by December 31, 2014, at least 30% of the capital increase by March 31, 2015, and all by June 30, 2015. After the capital increase is completed, the registered capital of Variety Photovoltaic will increase from US $139.8 million to US $152.4 million, with Variety shares and South Korea's Zhou Xing holding 66.7% and 33.3% respectively.
Increase capital to introduce car sunroof photovoltaic cell business, invigorate variety photovoltaic stock assets. Variety Photovoltaic is mainly engaged in the production of amorphous thin film solar cells, because the relevant production lines failed to meet the scheduled acceptance standards after long-term debugging, and the competitiveness of existing thin film solar cells in the traditional solar photovoltaic market is relatively weak, so the relevant production lines were not produced in 2014. In order to improve the operation of Variety Photovoltaic and invigorate the existing assets, Variety shares and South Korea's Zhou Xing discussed and decided to transform its production line to produce photovoltaic cells for automobile skylights.
The application of automobile solar sunroof is expected to be popularized and popularized continuously. At present, the car solar skylight has been configured and used on some high-grade cars, and its main functions are as follows: in high temperature weather, the electric power generated by the solar skylight is used to drive the fan to transfer the cold air outside the car into the car, which can greatly reduce the interior temperature; in the cold winter, the electric power generated by the solar skylight is used to heat the glass to prevent frost, and to provide continuous power supply for automobile telecom equipment such as car black box and automobile remote monitoring. The solar sunroof air circulation cooling function can also improve the life of the battery. We believe that with the continuous progress of science and technology, the function of automobile solar sunroof will continue to improve and improve, and there will be broad application prospects in the future.
Risk hint. Risks such as lower-than-expected promotion of car solar skylights.
Profit forecast and valuation. Variety is striving to become the largest lottery designer / seller in China, realizing the dream of mobile Internet; the equity investment project that has been cultivated for many years coincides with the golden time of listing and revaluation. We estimate that the company's EPS from 2014 to 2016 will be 0.05RMB / 0.41RMB / 0.52RMB respectively, corresponding to PE174.2/21.2/16.8 times, and maintain the "overweight" rating.