Main points of investment
With four subsidiaries as the main body, the company is a veteran supplier of ammunition products in China: the company is a local state-owned enterprise under Anhui military Industry Group and a shareholding company. Business is mainly carried out through four military subsidiaries (Shenjian Technology, Fangyuan Mechatronics, Dongfeng Mechatronics and Hongxing Mechatronics). The company is a veteran supplier of ammunition products in China. The predecessor of the four military subsidiaries are all third-line military factories established in the 1860s, which have been engaged in the R & D and production of ammunition products for a long time. After the reorganization, the original business is basically continued: Shenjian Science and Technology mainly engaged in mortar shells and optoelectronic countermeasure ammunition products; Fangyuan Mechanical and Electrical main individual Rocket products; Dongfeng Mechanical and Electrical main Fuze and submunitions products Red Star Mechanical and Electrical main pyrotechnics and fiber bullet products.
The company's products are developing in the direction of intelligence, and the implementation of fund-raising projects promotes the improvement of R & D capability: at present, the company's products are developing in the direction of intelligence. On the one hand, some of the company's products already have intelligent functions, such as the D03 electric detection device developed by Dongfeng Mechatronics, on the other hand, the company has undertaken a number of R & D projects related to intelligent ammunition, including guided shells, guided rockets, intelligent fuzes and so on. In addition, according to the company's prospectus, the product development plan identified and implemented in the next three years also includes a number of intelligent ammunition products, such as end-modified mortar shells, terminal-guided forced shells, guided bazookas and so on. The funds raised by the company will also be used for the development of smart ammunition products. We believe that with the implementation of the company's investment projects, the company's R & D capability and efficiency in the field of smart ammunition will be further improved.
Ammunition business has high growth, and intelligence is the future development direction: ammunition, as a kind of consumables, is widely used in wartime, while in peacetime, due to the needs of war preparation reserves and military training and exercises, the consumption of ammunition also maintains a high level. With the continuous improvement of military training, exercise intensity and frequency in the future, as well as the normalization of adversarial training and actual combat training, the consumption of ammunition in our country will continue to increase, so the ammunition business has high growth. In addition, with the rapid development of optoelectronic technology and information technology, intelligent ammunition which can achieve precision strike and intelligent damage has become a development trend.
Profit forecast: the development of the field of intelligent ammunition, with the help of post-market investment projects, will benefit from the consumables market of ammunition products in the future, as well as the continuous development and application of intelligent ammunition. We forecast that the company's 2020 operating income will be 1,611,1752 million, and the net profit attributable to the parent will be 1.33 million. Based on the total share capital of 724 million shares after the issue, the company will earn 0.18, 0.21, 0.22 per share in 2018, 20119, and 2020.
Risk hint: the progress of product development and finalization is not as expected; too much concentration of customers brings risks.