\u3000\u3 Guocheng Mining Co.Ltd(000688) 188 Shanghai Friendess Electronic Technology Corporation Limited(688188) )
Event: on March 5, the company announced that the fixed increase plan was approved. According to the previous announcement, the number of shares to be issued this time is no more than 30 million shares, no more than 30% of the total share capital of the company before this issuance. The sales restriction period is 6 months, and the total amount of funds raised is no more than 978 million yuan. The raised amount after deducting the issuing expenses will be invested in the intelligent cutting head expansion project Intelligent welding Siasun Robot&Automation Co.Ltd(300024) and control system industrialization project and ultra-high precision drive control integrated R & D project.
The intelligent cutting head cooperates with the cutting control system: the company’s existing main product is the laser cutting control system. The layout of the intelligent cutting head can be matched with the existing business software and hardware to provide an overall solution. The intelligent cutting head expansion project plans to produce 6 types of cutting heads with different power segments and different functions, with a total capacity of 14800 sets. The intelligent laser cutting head is composed of optical elements, machining elements and electrical elements. After the project is completed, most of the optical elements and machining elements required by the project are produced independently (previously outsourced). The electrical elements are self-developed and outsourced, and the production cost is expected to be further reduced.
The market space of intelligent cutting head is expected to be larger than that of cutting operation control: at present, most of the high-power cutting heads used by the manufacturers of laser cutting equipment downstream of the company are imported from abroad, which has a broad domestic alternative space. The cutting head is divided into incremental market and stock market. According to the company’s prediction, the total market scale will reach 63100 units by 2025. Based on the average price of 4 Tianma Microelectronics Co.Ltd(000050) 000, the market space of cutting head business is expected to reach 2.52-3.16 billion yuan by 2025, which is higher than the market space of motion control.
Intelligent welding is another growth curve of the company: cutting and welding belong to the relationship between upstream and downstream processes in the production and manufacturing of industrial products, welding is the next process of cutting, and the layout of intelligent welding is the vertical expansion of the company’s business. At present, the automation of steel structure welding process in China is low, which is limited by the working environment and welding efficiency, and there is an obvious demand for machines to replace labor. This expansion project plans to have 3000 sets of necessary parts for welding system and 10002000 sets of optional parts.
The company has multiple growth logic, the high-power market share of laser cutting control system is gradually increased, and the businesses such as laser cutting head, intelligent welding and chuck are launched simultaneously. Recently, we adjusted the model in combination with the industrial situation. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will reach 568 million, 774 million and 1062 million yuan, compared with the previous values of 582 million, 746 million and 1001 million yuan, maintaining the buy rating.
Risk tip: the sharp downturn of macro economy leads to sluggish demand, the rapid deterioration of market pattern leads to the decline of profitability, and the expansion of new business is less than expected.
