1. The bidding is the procurement behavior of Jilin Municipal Government, which has strong performance ability and short delivery time, which makes an immediate contribution to the company's fourth quarter performance.
This time, Jigong Machinery, a subsidiary of Sen Yuan, won the bid for Jilin City's 2016 urban management professional machinery and equipment investment procurement project, with a winning bid amount of 42.01 million yuan, accounting for 10.39% of the 2015 operating income. The procurement contents of the project include: 5 sets of multi-function sliding machines, 2 sets of vacuum dirt suction vehicles, 2 sets of high-pressure water sandblasting cleaning vehicles, 60 sets of hand-held snow rolls, 30 sets of hand-held snow throwing machines, 20 sets of hand-held deicing machines, 2 sets of snow shovel snow rollers, 4 sets of sprinklers with 8-10 tons and 2 sets of sprinklers with 8-10 tons (including snow rolls), etc. Project delivery time is short: snow cleaning equipment: within 20 days after the signing of the contract, other equipment: within 60 days after the signing of the contract. Will significantly improve the performance of Sen Yuan shares in the fourth quarter.
Jilin Urban Construction holding Group Co., Ltd., the tenderer of the project, is a wholly state-owned legal entity directly under the Jilin Municipal Government engaged in urban infrastructure construction and the operation of related state-owned assets. full-time engaged in urban construction project financing, investment and construction management, and participate in the operation of relevant state-owned assets in the form of holding or equity participation. The bidding is the procurement behavior of Jilin Municipal Government, with abundant financial resources and strong ability to perform the contract.
two。 Senyuan is a domestic road maintenance equipment leader. Through the PPP model, the joint venture from equipment (20 billion market) to road maintenance service (200 billion market) has been laid out for 2 years and will enter the harvest period at the end of the year.
At present, the number of roads in China has become the first in the world, the construction is coming to an end, and the maintenance demand is being released gradually. with the opening of the maintenance cycle, it is estimated that the annual demand for equipment will exceed 20 billion, and the annual investment in maintenance services will exceed 200 billion. Senyuan is a leading enterprise of road maintenance equipment in China. Since 13 years, it has transformed from equipment manufacturing to maintenance layout. It has established 19 joint ventures nationwide, which will enter the harvest period at the end of the year. It is expected that the annual net profit of a single mature company will exceed 10 million. At present, Sanyuan has an average equity proportion of 30%, 40% in the joint venture company, and is expected to control high-quality companies in the future.
3. The transformation of municipal service contractors has been successful, and the joint venture model has entered the 2.0 era, expanding from a single road maintenance to the entire municipal service outsourcing market.
The company and enlighten Sander signed a strategic cooperation framework agreement, the joint venture model entered the 2.0 era, the scope of business expanded from a single road maintenance to the entire municipal service outsourcing, sharing the municipal service outsourcing market. The company has won two bids for the Jilin Gallery PPP project with a total order of about 10 billion, marking the company's successful transformation into a municipal service outsourcing service provider. During the two-year construction period of 17-18, it is expected to contribute more than 100 million yuan to the company's annual profits and promote the company's performance to enter an explosive period.
4. Sen Yuan also laid out the military industry + 3D printing, and the industrialization is about to make a new contribution.
Military industry: Senyuan Co., Ltd. has become a first-class supplier of new road maintenance machinery to the army. The company's large thermal regeneration units, road surface snow removal and cleaning equipment and other products are included in the military procurement, and can join the whole army supply system. The company will also use sand laser 3D printing technology to participate in the rapid manufacturing of warship propellers and other components. Opening up the military market is another new growth point for the company's business performance. 3D printing: Senyuan began to lay out the 3D printing industry chain in the past 14 years, and the company is currently applying for military industrial secrecy qualification. The company's 3D printing supporting key naval projects has great potential and is expected to become the next Wang Huaming team (J-20 matching). During the reporting period, the company's high-precision 3D printing project is progressing steadily, and it is expected that high-precision 3D printing industrial applications will be realized in the near future.
5. Investment advice:
From 2016 to 2018, the company is expected to achieve a net profit of 110 million, 250 million and 320 million, corresponding to EPS of 0.40,0.93,1.20 yuan, and PE of 55X, 24x and 19x, which is strongly recommended. 6. The risk indicates that the number of joint ventures is not up to expectations, and the promotion of PPP projects is not as expected.