The vice president raised additional funds to increase the company's stock holdings, reflecting his full confidence in the sustained and stable development of the company in the future, realizing risk-sharing and benefit-sharing between employees and the enterprise, and showing medium-and long-term value.
Event: the company received notice from Ms. Yan Dongmei, vice president on May 22, that Yan Dongmei, in accordance with her commitment to increase its holdings on March 2, again increased its shares in the company by subscribing to Jiujiuyi Asset Management Co., Ltd. established by Shenzhen Jiujiuyi Asset Management Co., Ltd. It uses 15 million yuan of self-raised funds to subscribe for Jiujiuyi 3 fund (a total of 45 million yuan together with the initial subscription of 30 million yuan), while Guoxin Securities continues to provide 30 million yuan of financing funds in the swap transaction (9000 million yuan together with 60 million yuan of financing funds provided for the first time). On May 21, the Jiujiuyi No. 3 fund completed the income swap transaction with Guoxin Securities, increasing its holdings of 437700 shares through the secondary market trading system of the Shenzhen Stock Exchange, with an average holding price of 102.876 yuan, accounting for 0.145% of the company's total share capital.
Vice president high-level financing to increase holdings. Yan Dongmei this time with self-raised funds to subscribe for Jiujiuyi No. 3 fund and matching financing to buy shares in the company, once again highlighting her firm confidence in the future development of the company. As of May 22, 2015, Yan Dongmei held a total of 1.7496 million shares, accounting for 0.579% of the company's total equity.
The employee stock ownership plan is completed. On May 15, 2015, the employee stock ownership management plan Baoying Hengshun No. 3 specific multi-customer asset management plan completed the stock purchase of the employee stock ownership plan, purchasing a total of 875767 shares of the company (about 0.29% of the company's shares). The share lock period is one year, realizing the risk sharing and benefit sharing between employees and the enterprise, and showing the medium-and long-term value.
The increase of holdings is still in progress. As of May 14, 2015, except for Dong Dong Wang, Vice President Yan Dongmei, Supervisor Ying Ming, Director Jia Yulan, and Dong Dong Yao Gang, their holdings have increased by 0.43%, 1.69%, 0.76%, and 0.69% respectively. At the same time, the actual controller Jia Quanchen and his concerted actors Jia Yulan, Jia Xiaoyu and Dai Yiming (the son of Jia Yulan) also promised to increase their shares in the company by no more than 2% within 12 months from April 30, and will not reduce their holdings in the company.
The performance in the first half of the year is expected to increase tenfold. The company's quarterly report predicts that it will make a profit of 1.77-187 million yuan in the first half, an increase of 1058-1123% over the same period last year. The company's profit has increased greatly compared with the same period last year. The main reasons are: (1) the large contract signed in 2014 will continue to contribute to the company's profits. Currently, orders are being executed for about 1 billion yuan. According to the production plan, the semi-annual output value will increase significantly over the same period in 2014, which will greatly increase the net profit belonging to the shareholders of the listed company. (2) it is estimated that the non-recurrent profit and loss of the company during the reporting period is 1.03 million yuan, compared with 900000 yuan in the same period in 2014.
Maintain a "buy" investment rating. The company relies on the Indonesian Nickel Iron Industrial Park project to integrate Indonesian mineral (coal, nickel) and power plant resources to create a complete nickel industry chain; at the same time, the company will take the Indonesian Industrial Park project as the starting point, continue to open up the overseas sales market of machinery and equipment business, it is expected that sales orders and sales revenue will continue to increase in 2015, and the company's performance will maintain rapid growth. According to the company's performance and project progress, the company's EPS in 2015-2016 is expected to be 1.31 yuan and 2.27 yuan respectively. Combined with the average valuation level of the nickel sector and the improvement of the company valuation level by "Belt and Road Initiative", we give the company a target price of 113.5 yuan, corresponding to 50 times PE in 2016, maintaining a "buy" rating.
Risk hint. Policy risk; project production risk; exchange rate fluctuation risk; business integration risk.