Henan Hengxing Science & Technology Co.Ltd(002132) (002132)
Company events
Recently, the company issued a fixed increase announcement. The non-public offering price was 4.40 yuan / share, the number of shares issued was 145 million, and the total amount of funds raised was 638 million yuan. After deducting the issuance related expenses, the net amount of funds raised was 625 million yuan, which is intended to be used for the reconstruction and expansion project of galvanized steel wire and steel strand, the reconstruction and expansion project of prestressed steel strand and the project of prestressed steel strand with an annual output of 200000 tons.
The completion of non-public offering at a premium demonstrates the market’s confidence in the rapid growth of the company
As of November 24, 2021, the company’s special account for subscription funds has actually received 638 million yuan, and the full amount of funds raised for fixed increase projects has been completed. The offering price is 4.40 yuan / share, which is equivalent to 103.77% of the reserve price of 4.24 yuan / share. This time, 16 issuance objects were finally allocated, including high-quality institutions such as Tibet Ruihua capital, Nord fund, Cathay Pacific Fund and Yingshui investment. The fixed increase premium issuance and high institutional participation fully demonstrate the market’s confidence in the company’s rapid development in the future.
Capacity expansion strengthens the leading position, improves quality and efficiency, and helps improve profitability
The company is a professional manufacturer in the field of metal products in China. It not only has a relatively perfect industrial chain layout, but also is a leading manufacturer in the subdivided industry of galvanized steel wire and steel strand. At present, the company has a production capacity of 100000 tons of galvanized steel wire and steel strand and 100000 tons of prestressed steel strand. This fixed value-added project will help the company promote the implementation of reconstruction and expansion projects and new projects, further expand the capacity scale of advantageous products galvanized steel wire and steel strand and improve production efficiency, which is conducive to improving the company’s market competitiveness, and the company’s overall profitability is expected to continue to improve.
Diamond line capacity expansion + silicone production is imminent, optimistic about the company’s future development
The company accelerates the capacity expansion of diamond line and promotes the production of silicone project. The company’s performance next year has high growth potential: ① diamond line project: the company currently has a monthly production capacity of 1 million km, and actively promotes the “reconstruction and expansion project of ultra-fine diamond line with an annual output of 10 million km” and “ultra-fine diamond line project with an annual output of 30 million km”, It is estimated that the company’s planned output will reach 30 million km in 2022 (the reconstruction and expansion project has successfully reached the production capacity, and 40-50% of the 30 million km diamond line project has been put into operation). After the smooth release of the production capacity next year, the company’s diamond line production capacity will be stable in the forefront of the industry. ② silicone project: the company’s annual output of 120000 tons of silicone project has completed the on-site acceptance, and can be put into trial production after the record is passed this month. It is expected that 70-80% of the production capacity will be released next year, with a significant increase Increase the company’s profits.
Investment advice
The company is a professional manufacturer in the field of metal products. At present, the company’s traditional metal products business is growing steadily, the capacity expansion project of diamond line is advancing steadily, and the silicone project is expected to be put into operation by the end of the year. The implementation of fixed value-added projects is expected to support the sustainable development of the company’s business. We expect the company to achieve an operating revenue of RMB 3.32/72.4/8.93 billion and a net profit attributable to the parent company of RMB 170 / 9.4/1.23 billion from 2021 to 2023. The current share price corresponds to 50 / 9 / 7 times of PE respectively and is rated as “buy”.
Risk statement
The project construction is not as expected; The price of raw materials fluctuates, and the downstream demand is lower than expected.
