Main points of investment:
The company implements 20 million restricted stock incentives to stimulate the new vitality of state-owned enterprises. The company announces the implementation of 20 million restricted stock incentives, and the incentive targets of this incentive plan are a total of 20 million directors, senior managers and middle managers and core backbone whom the board of directors of the company thinks should be encouraged. It accounts for 2.96% of the company's total share capital of 674.5789 million shares at the time of the announcement of the draft incentive plan. The grant price of restricted stock is 3.14 yuan per share, that is, after the grant conditions are met, the incentive object can purchase the additional restricted stock issued by the company to the incentive object at the price of 3.14 yuan per share. Based on the average net profit from 2018 to 2015, the growth rate of net profit from 2013 to 2020 is not less than 150%, 180%, 230% and other restrictions. This large-scale incentive is expected to stimulate the new vitality of state-owned enterprises and promote stable performance growth.
The conversion of new and old kinetic energy will accelerate industrial upgrading, and the relocation is expected to receive large compensation. The company announced through consultation with the people's Government of Shiyan City and signed the "Agreement on Environmental Protection relocation and upgrading Project of Shuangxing Dongfeng Tire Co., Ltd.". The subsidiary of Shuangxing Dongfeng Tire Co., Ltd. was relocated to the new industrial park in Zhangwan District, Shiyan City. the local government collected and stored about 725 mu of land and above-ground assets of Dongfeng tire and gave relocation compensation. At the same time, the company has established a world-leading 4.0 intelligent chemical plant for tire industry in Zhangwan District, Shiyan City, with an annual production capacity of 1.5 million sets of high-end commercial tires and 5 million sets of high-end passenger tires to meet the needs of high-end commercial vehicles and passenger vehicles. On the one hand, the relocation will help the company to achieve the conversion of new and old kinetic energy and accelerate industrial upgrading, on the other hand, the relocation of 725 mu of land is expected to receive a large amount of compensation.
With the relocation of capacity and fluctuations in raw material prices, the company's performance is still growing steadily. At present, the company has the production capacity of 4.75 million all-steel tyres and 6 million semi-steel tyres, of which 4 million all-steel tyres are in the stage of capacity relocation. After the completion of the relocation, it will have the production capacity of 5 million all-steel tyres and 10 million semi-steel tyres. The relocation will add 4 million semi-steel tire production capacity to be gradually put into production. As the company is mainly all-steel supporting, the customer structure is simple, the price of raw materials fluctuated sharply in the first quarter, the company's performance still maintained steady growth.
A large proportion of major shareholders participate in the fixed increase, demonstrating the long-term value of the company. The company's non-public offering was approved by the CSRC on September 21, and the proportion of the total number of shares subscribed by the Shuangxing Group, the major shareholder of this plan, is not less than 23.38%, maintaining the current proportion, and other funds are not publicly issued to the market. The initial price of the issue is 6.33 yuan per share, which indicates that the company is optimistic about the long-term development of the company.
Industrial 4.0 intelligent chemical plant gradually reached production, brand output both increased. The company's global model and market innovation center and the global technology and demand innovation center (including the global graphene tire R & D center) have been fully completed and put into operation; the commercial tire full process industry 4.0 intelligent chemical plant has reached full production. Passenger tire full process industry 4.0 intelligent chemical plant is also about to be fully put into production, adding 4 million of semi-steel tire production capacity by the end of the year and next year step by step into production.
Profit forecast and investment rating: the intelligent model factory has been completed and put into production, and the level of net interest rate is expected to increase gradually. it is expected to integrate high-quality resources at home and abroad and become a new tyre giant in China. It is estimated that the EPS of 17-19 will be 0.23,0.39 and 0.45 yuan respectively, corresponding to 27 times, 16 times and 14 times of PE in 17-19 years.
Risk tips: fierce competition in domestic and foreign markets, industry integration is not up to expectations, market development is not up to expectations.
