An overview of the basic situation of the company. The company is committed to the research and application of adhesives and new materials. In 2018, on the basis of in-depth layout in the field of adhesive new materials, the company completed the acquisition of Chengdu must Control Science and Technology Co., Ltd. new electromagnetic compatibility and power module and other related business. According to the 2019 semi-annual report, we will continue to cultivate the subdivided industries in the field of "new materials + military industry" in the future, and gradually improve the company's long-term strategic layout. In 2018, the company achieved an operating income of 928 million yuan (yoy68.85%) and a net profit of 80 million yuan (yoy83.75%) attributable to the shareholders of the listed company. According to "2019 results KuaiBao", the company achieved operating income of 1.066 billion yuan (yoy14.84%) in 2019, and net profit belonging to shareholders of listed companies was 139 million yuan (yoy72.81%).
Deep ploughing adhesive field has a good market prospect at home and abroad. The company is one of the largest professional adhesive production and R & D enterprises in China, and has been committed to the research and application of adhesives in various application fields since its establishment.
The products are widely used in wind turbine blade manufacturing, soft material composite packaging, rail transit, marine engineering, automobile, electronic and electrical appliances, construction, machinery and equipment and industrial maintenance and other fields. among them, the performance of many products such as epoxy adhesive, acrylic glue and polyurethane adhesive for wind turbine blades have reached the level of similar products in the world. The company makes full use of the position advantage in the field of wind power blade manufacturing, and contacts with international well-known wind power manufacturing companies Vestas WindSystems A hand S (Vestas Wind Technology Group) and Siemens Gamesa (Siemens Gamesa) to expand market share, so that the company's products can accelerate to enter the international market. According to the feasibility analysis report of the production expansion project of high-performance epoxy structural adhesive disclosed by the company in November 2019, it is proposed that some of the funds raised will be invested in the production expansion project of high-performance epoxy structural adhesive. After the completion of this project, the company will become one of the largest production bases of epoxy structural adhesive for wind turbine blades in the world.
Acquisition of must-control technology to add electromagnetic compatibility and other related business. In 2018, the company transferred 68.1546% of its shares to the company, which holds a total of 99.8998% of the shares. Must control technology in the field of military electromagnetic compatibility has a high degree of industry recognition, with independent development and design of advanced electromagnetic compatibility products research and development, assembly and service system. According to the company's 2018 annual report, in addition to the huge market space in the field of military electromagnetic compatibility and the outstanding ability of must-control technology, what is more important is that it can fully cooperate with must-control technology in resource channels, and the synergy effect is obvious. In order to optimize and improve the layout of the company in the field of electromagnetic compatibility, promote the application and promotion of electromagnetic compatibility technology and products in equipment and civilian fields. In the next stage, the company will further integrate the technical R & D and sales channel resources in the field of military electromagnetic compatibility, and make every effort to grasp the major historical opportunities in the military electronic information tide.
It is planned to gradually realize the equity participation / holding of Beijing Jinghanyu and the reliability testing of the overall acquisition and layout of electronic components. According to the announcement on signing the Framework Agreement on Equity acquisition in December 2019, the company intends to gradually realize the shareholding, holding and overall acquisition of Beijing Jinghanyu Electronic Engineering Technology Co., Ltd.
Jing Hanyu is an independent third-party testing organization specializing in providing reliability testing services for electronic components, its main business is to provide customers with reliability testing services such as component screening, destructive physical analysis (DPA) and test program development.
According to the company's announcement on the signing of the Equity acquisition Cooperation Framework Agreement, the prerequisite for the second transaction of the first acquisition is that Beijing Hanyu deducts non-net profit of not less than RMB 80 million in 2020-2023, deduction of non-net profit of 0.92 shock 1.06 shock 122 million respectively. The signing of this agreement is in line with the company's diversified group development strategy of "new materials + military industry", further strengthens the deep integration of the company's advantages in military electronic technology and resources in the field of testing, gives full play to synergy, and optimizes the company's industrial layout. further promote the long-term development of the company.
Profit forecast and investment advice. We estimate that the return net profit of the company from 2019 to 2021 will be RMB 1.35pm 168pm, respectively, and the corresponding EPS will be RMB0.53 RMB 0.66max 0.79 per share. With reference to the comparable company valuation, the company is given a valuation of 30-35 times PE in 2020, corresponding to a reasonable value range of 19.80-23.10 yuan per share, with a "better than the market" rating.
Risk hint. (1) competition intensifies, (2) demand fluctuation.