\u3000\u3 China Vanke Co.Ltd(000002) 960 Jade Bird Fire Co.Ltd(002960) )
Event: on April 19, 2022, the company released an overview of the non-public offering plan. The number of shares to be non-public offered is no more than 69787122 (i.e. no more than 20% of the total share capital of the company before the offering), and the total amount of funds raised is no more than 2.206 billion yuan, which is invested in projects such as " Jade Bird Fire Co.Ltd(002960) Safety Industry Park", "upgrading and expansion of Mianyang industrial base", "construction of intelligent fire fighting platform" and "construction of overseas R & D and testing center".
By item:
① Jade Bird Fire Co.Ltd(002960) safety industrial park project (the proposed raised amount is about 1.012 billion yuan, accounting for 45.85%): the implementation subject is Anhui Jade Bird Fire Co.Ltd(002960) Technology Co., Ltd., which is located in Ma'anshan City, Anhui Province. It aims to improve the production scale of emergency evacuation, gas detection, fire and other products, strengthen the production capacity layout in the Yangtze River Delta with high corporate income, and prepare for the continuous increase of market share in the future, At the same time, it extends to the upstream of the industrial chain (some core parts and finishing) to improve product quality. The proposed construction period of the project is 2 years. It is expected that in the year when the production capacity is reached, the operating revenue will be 2.96 billion yuan, the net profit will be 362 million yuan, and the static investment payback period will be 7.31 years (including the construction period).
② Mianyang industrial base upgrading and expansion project (the proposed raised amount is about 401 million yuan, accounting for 18.18%): the implementation subject is Sichuan Jiuyuan intelligent fire fighting equipment Co., Ltd., which is located in Mianyang City, Sichuan Province. It aims to expand the production capacity of Jiuyuan brand fire alarm products and evacuation products (part of the production capacity is OEM for Qingniao brand) and strengthen the market supply capacity of the company's fire safety products in Southwest China. The proposed construction period of the project is 1.5 years. It is estimated that in the year when the production capacity is reached, the operating revenue will be 1.022 billion yuan, the net profit will be 107 million yuan, and the static investment payback period will be 7.26 years (including the construction period).
③ intelligent fire fighting platform construction project (the amount raised to be used is about 54 million, accounting for 2.43%): the implementation subject is Jade Bird Fire Co.Ltd(002960) , which aims to carry out R & D and upgrading of the current company's fire fighting cloud service platform and new development of the fire safety integration platform, further enhance the company's software technology R & D capability and improve the service level of intelligent fire fighting platform. The proposed construction period of the project is 2 years. Although the completion of the project will not directly produce financial benefits to the enterprise, it can help the company upgrade its business format and enhance its comprehensive strength.
④ construction project of overseas R & D and Testing Center (the amount to be raised is about 80 million, accounting for 3.62%): the implementation subject is Meian (Canada) fire fighting equipment Co., Ltd., which aims to help the company carry out research, development and certification in the international fire safety market, and upgrade and develop products that meet the applicable UL / ULC standards in North America, Latin America and Southeast Asia on the basis of the company's existing products, Civil and commercial fire alarm products in line with French NF and other standards, enrich the supply categories of the company's products in the international market, and lay a foundation for the company to explore overseas markets and expand overseas sales scale. The completion of the project will not produce direct financial benefits to the company, but will play a significant role in promoting the company to further enhance its international competitiveness.
⑤ supplement working capital (about 660 million yuan is proposed to be invested, accounting for 29.92%). It aims to meet the working capital demand brought by the continuous growth of business scale in the future and further improve the overall profitability of the company.
Impact on the development of the company:
① enhance the company's capacity scale and improve the layout of production base. From the perspective of the investment direction of the funds to be raised, more than 60% is used for the capacity expansion of core products such as general fire alarm, emergency evacuation and industrial fire control in two production bases, Anhui Ma'anshan and Sichuan Mianyang (the company currently has four production bases in China: Hebei Zhuolu, Sichuan Mianyang, Guangdong Zhongshan and Anhui Ma'anshan), laying a solid capacity foundation for the company to continuously improve its market share. At the same time, strengthen the company's product supply capacity in the Yangtze River Delta and southwest, and form a more comprehensive coverage in the national market.
② enhance the R & D strength at home and abroad and enhance the core competitiveness of the company. The company's fire safety products have leading technical advantages in stability, online rate, anti-interference, debugging convenience and other aspects, and are constantly innovating iteratively. This overweight overseas R & D center and intelligent fire protection platform project aims to enhance domestic coordination ability, and carry out R & D and upgrading of fire cloud service platform and fire safety integration platform, so as to effectively improve the company's product R & D, certification and testing ability in China and international markets, Enhance the company's core competitiveness.
③ the company is currently in a period of rapid growth, which is a good opportunity to take advantage of the capital market to expand its competitive advantage. The market share of the company's traditional main business fire alarm products continues to increase, the emergency evacuation business outlines a clear second growth curve, and the development of energy storage / industrial fire protection catalyzes the company's products to move towards the high end. At the same time, the covid-19 epidemic and the rise of raw materials have exacerbated the competitive pressure of small and medium-sized enterprises, and the continuous overweight of fire protection policies has forced the improvement of product strength. In this context, the company leverages capital market financing to expand its competitive advantage, reflects the timeliness and foresight of the company's strategy, and is expected to achieve leapfrog growth in the future.
Investment suggestion: it is estimated that the operating revenue from 2022 to 2024 will be 5.207 billion yuan, 6.918 billion yuan and 9.116 billion yuan respectively, with a year-on-year growth rate of 34.8%, 32.9% and 31.8% respectively, and the net profit attributable to the parent company will be 781 million yuan, 1.092 billion yuan and 1.526 billion yuan respectively, with a year-on-year growth rate of 47.4%, 39.7% and 39.8% respectively. EPS is 2.24, 3.13 and 4.37 yuan respectively, and the corresponding PE is 18, 13 and 9 times respectively. Maintain the "Buy-A" rating, and the six-month target price is 67.2 yuan.
Risk warning: market competition intensifies; The expansion of emergency evacuation market is less than expected; Business expansion in the industrial field is less than expected; The collection is less than expected, resulting in the increase of bad debts; Poor management of major shareholders has dragged down listed companies.
