\u3000\u3000 China Greatwall Technology Group Co.Ltd(000066) (000066)
Event: the company announced the report on the issuance of China Greatwall Technology Group Co.Ltd(000066) non-public Development Bank A shares and the listing announcement.
The fixed increase was subscribed by a number of state-owned enterprises. The price of this non-public offering is 13.96 yuan / share, and the amount of funds raised is 3.987 billion yuan. Among them, the company’s shareholders CLP Co., Ltd. and CLP financial holding are the company’s related parties, and many state-owned enterprises such as industrial investment fund Co., Ltd., Guohua fund, Guoxin Shuangbai and China North Industry Co., Ltd. participated in the non-public offering.
Invest in digital economy fields such as chip, complete machine production line, military industry and new energy industry. Of the 4 billion yuan of this non-public offering, 1.8 billion yuan was invested in key chips, independent complete machines and domestic complete machine intelligent production line projects; 1.2 billion investment in information and new energy infrastructure construction projects; 300 million investment in military high-tech electronic innovation and application projects; 687 million was used to supplement working capital. The spin off was approved, and the main body of listed companies focused more on the three main businesses. The company plans to spin off its subsidiary Great Wall Information Co., Ltd. to be listed on the gem of Shenzhen Stock Exchange. Great Wall information is a solution supplier and equipment supplier focusing on the information construction of channels in banking, taxation, insurance, securities and other industries. Previously, the company has completed the sale of medical business. So far, after the fixed increase, the company further focused its resources on three major industries: chip machine, military industry and new energy.
Investment suggestion: under the industrial trend of large-scale application of arm, the Feiteng development potential held by the company is huge. With the continuous implementation of industry information innovation, the company’s revenue is expected to rise to a higher level. It is estimated that the company’s EPS from 2021 to 2023 will be 0.29/0.44/0.62 yuan respectively, maintaining the buy rating.
Risk tip: the landing of arm industry is not as expected; The development of industry Xinchuang is less than expected; Unable to realize the performance evaluation of equity incentive; Industry competition intensifies
