Investment viewpoint:
Extension into the field of military industry, real controllers subscribe for supporting funds to demonstrate confidence. The company plans to buy 100% shares in Hongxiang Technology and 100% shares in Zhongqiang Technology by issuing shares and paying cash at a transaction price of 1.16 billion yuan and 1.05 billion yuan respectively.
At the same time, no more than 1.017 billion yuan of matching funds were raised for project construction, of which Zhou Jiancan, the actual controller, subscribed 60.65%, demonstrating his determination for the future development of the company. The controlling shareholder of Hongxiang Technology promised that the deduction non-net profit to be realized in 2016-2019 should not be less than 50 million, 75 million, 93.75 million, 117 million yuan. Zhongqiang Technology holding shareholder promises that the non-net profit deducted from 2016 to 2020 will not be less than 35 million yuan, 70 million yuan, 94.5 million yuan, 128 million yuan and 172 million yuan, which will greatly increase the company's performance.
Civil-military integration raises huge waves, high-end equipment + military industrial platform set sail. After the completion of the reorganization, the company will further expand the R & D and manufacturing capabilities of high-end equipment and systems, and form the coordinated development of R & D and manufacturing of professional ventilation systems in nuclear power, rail transit, military and other fields, as well as military infrared ultraviolet imaging equipment and military stealth equipment. Zhongqiang's technology and market resources in the military field, as well as the mature products and technological advantages of Hongxiang Technology will enable listed companies to gradually establish "military-civilian integration of high-end equipment and system R & D equipment manufacturers".
To realize the in-depth development of military-civilian integration.
Steady growth in the main business, with tunnels, civil and industrial sectors as the main performance growth points. The company's overall revenue has maintained growth, with the tunnel, civil and industrial sectors growing by 39.99% and 35.53% over the same period last year, becoming the main growth point. Due to the growth of investment in the rail transportation industry, the company continues to have the first market share in the field of tunnel fans, and is expected to maintain a high growth rate in the future.
In the civil and industrial sectors, it is a bid-winning Wanda annual collection project, which has brought a substantial increase in the number of small fans. The CAP1400 containment recirculation cooling fan unit jointly developed by the company has passed the acceptance test, which will lead to the rapid growth of business in the nuclear power field.
Investment rating and valuation: without considering mergers and acquisitions, the company's 17-19 year net profit is expected to be 5793 yuan, 7436 yuan, 94.42 million yuan, corresponding to EPS0.36/0.46/0.59 yuan.
Cover for the first time and give recommended rating.
Risk hint: the growth rate of investment in rail transit industry is declining; M & A can not be carried out smoothly.