Pattern open! On January 7, Guangdong Hongda Blasting Co.Ltd(002683) (002683. SZ) will hold a shareholders’ meeting in Guangzhou to discuss the proposal of renaming the company’s name, aiming to highlight the characteristics of platform and diversified operation.
In recent years, the main business of Guangdong Hongda Blasting Co.Ltd(002683) has gradually evolved from a single urban blasting demolition to three sectors: Mining clothing, civil explosives and military industry. According to the 2020 annual report, the operating profit of civil explosives and military industry has accounted for more than 40%.
On December 20, 2021, the company announced that it planned to plan a major asset restructuring, acquire 100% equity of Shengli minbang, and apply for stock suspension. However, due to the failure to form a reorganization plan within 10 trading days, the company announced the termination of the matter on January 4.
Although the acquisition was not successful, during this period, Guangdong Hongda Blasting Co.Ltd(002683) announced another major event to participate in the establishment of Guangdong Military Industry Group Co., Ltd. (hereinafter referred to as “military industry group”).
On January 3, Zheng bingxu, chairman of the board of directors, Liang Fa, general manager, and Zhao Guowen, deputy general manager and Secretary of the board of directors, communicated with investors on recent major asset restructuring projects and the establishment of military industry group, saying that they were steadily promoting the work of HD-1 project and JK project.
At present, the military defense equipment business is the focus of the company’s strategic transformation, and Guangdong Hongda Blasting Co.Ltd(002683) has made many phased progress in this sector. Insiders said that the progress of military trade orders in the future will affect Guangdong Hongda Blasting Co.Ltd(002683) performance and stock price trend.
deepen the cultivation of military industry and accelerate the strategic transformation
After the suspension of trading due to restructuring, Guangdong Hongda Blasting Co.Ltd(002683) announced on December 22 that it planned to jointly invest 100 million yuan with Guangye equipment, national industrial investment fund, Rongcheng consulting and Zhongke Yuewei to establish a military industry group.
Among them, Guangdong Hongda Blasting Co.Ltd(002683) invested 40 million yuan, accounting for 40% of the equity of the military industry group, and is the largest shareholder of the military industry group. The actual controller of Guangye equipment and Guangdong Hongda Blasting Co.Ltd(002683) are both Guangdong Environmental Protection Group. Therefore, the actual controller of military industry group is also Guangdong Environmental Protection Group.
According to Guangdong Hongda Blasting Co.Ltd(002683) , the military industry group will develop as a provincial enterprise in Guangdong Province. In the future, it will mainly focus on network security, unmanned combat equipment and other aspects to do specific business.
In addition, in order to better develop the military business market, reflect the company’s development strategic direction and break the limitations brought by the old name “blasting”, the company plans to change its name to “Guangdong Hongda Holding Group Co., Ltd.”, hereinafter referred to as “Guangdong Hongda”.
The reporter learned that in recent years, Guangdong Hongda Blasting Co.Ltd(002683) has made great efforts to develop military industry business and took the defense equipment business sector as the focus of strategic transformation. Its defense equipment business is subdivided into weapons and equipment manufacturing industry, that is, the development and production of weapons and equipment.
Taking the subsidiary Minghua company as the implementation platform, Guangdong Hongda Blasting Co.Ltd(002683) has made some phased progress in this sector.
Minghua company is one of the 14 local key military protection enterprises in China. It is a local military enterprise in Guangdong Province undertaking the task of scientific research and production of weapons and equipment. It has the “three certificates” of military industry. It is one of the provincial military enterprises with the most sound qualification and the highest qualification level in the industry.
Guangdong Hongda Blasting Co.Ltd(002683) the semi annual report of 2021 shows that Minghua’s products are oriented to China and the international market.
Among them, the product layout in the Chinese market includes traditional ammunition products, intelligent ammunition products, individual intelligent equipment and other products. The output and sales volume of traditional defense equipment products mainly depend on the order quantity, which is linked to the national plan of the current year.
HD-1 project and JK project are mainly facing the foreign market. Among them, HD-1 project is a missile weapon system independently invested and developed by Guangdong Hongda Blasting Co.Ltd(002683) , and JK project is a new guidance weapon independently invested and developed.
In the first half of 2021, the hang flight test of JK series UAV independently invested and developed by the company was successful. In addition, the construction of the general assembly plant of HD-1 project also broke ground.
In the 2021 semi annual report, the company said that it would spare no effort to accelerate the above projects, so as to accelerate the realization of strategic objectives. Up to now, HD-1 and jk-1 have obtained export qualification for more than two years, during which Guangdong Hongda Blasting Co.Ltd(002683) many announcements on the progress of military trade projects have been issued.
the stock price is higher, and the organization is firmly optimistic about
The reporter noted that on January 5, Guangdong Hongda Blasting Co.Ltd(002683) announced that “in terms of military trade, customers have come to China for negotiation”, but this move still failed to restore the confidence of investors.
Based on the uncertain expectation of the market for the landing of orders for military trade products, combined with factors such as the termination of cooperation of Haisha project and institutional capital outflow, the share price and valuation of Guangdong Hongda Blasting Co.Ltd(002683) have been “halved” compared with the high point in 2020.
According to the data, as of the closing on January 6, Guangdong Hongda Blasting Co.Ltd(002683) shares fell 3.03% to close at 28.18 yuan / share. Previously, on August 7, 2020, Guangdong Hongda Blasting Co.Ltd(002683) once had a share price of 66.39 yuan / share.
In the “howl” of investors, some institutions recently expressed their optimism about Guangdong Hongda Blasting Co.Ltd(002683) .
Everbright Securities Company Limited(601788) believes that the company’s investment and participation in the establishment of Guangdong military industry group, firm adherence to the route of platform and diversified operation, and general work as an important development direction will help to expand the company’s development space in the field of national defense and military industry, improve the company’s technical level, and enhance the company’s business and profitability.
Wanlian Securities Research Report also pointed out that it still has confidence in the landing of the company’s military trade orders. The approval process of major military trade transactions is complex and lengthy. Moreover, the company’s military trade products are still new products, and the verification cycle is longer and reasonable than mature products.
It is worth noting that during the period since Guangdong Hongda Blasting Co.Ltd(002683) obtained the export qualification of military trade products, zero Overseas Corps has visited China for up to one year affected by the epidemic, which has seriously prolonged the period of field investigation for target customers.
In this regard, Wanlian Securities said that now the tests carried out by the two military trade projects have successfully passed, and orders are being negotiated through the military trade company, and the military trade business is about to enter the harvest period.
Wanlian securities also said that the change of market mentality has led to excessive fluctuations in the company’s share price and has entered an undervalued state.
Guangdong Hongda Blasting Co.Ltd(002683) on January 5, it was announced that the construction of the company’s general assembly plant was progressing steadily as planned. In addition, in terms of military trade, customers have come to China for negotiation.
In the investor exchange activity on January 3, Guangdong Hongda Blasting Co.Ltd(002683) said that in 2021, the company’s traditional business Civil Explosion sector and mining clothing sector grew steadily, which brought support to the company’s fundamental development.
According to the financial data, from 2018 to 2020, Guangdong Hongda Blasting Co.Ltd(002683) achieved operating revenue of 4.58 billion yuan, 5.902 billion yuan and 6.395 billion yuan respectively, and net profit of 214 million yuan, 307 million yuan and 404 million yuan respectively.
In the first three quarters of 2021, the company achieved an operating revenue of 5.786 billion yuan, a year-on-year increase of 34.65%; The net profit in the same period was 339 million yuan, a year-on-year increase of 24.91%.
(21st Century Business Herald)
