\u3000\u3 China Vanke Co.Ltd(000002) 236 Zhejiang Dahua Technology Co.Ltd(002236) )
Event: on April 18, the company issued an announcement that the application for non-public offering of shares was examined and approved by the development and Examination Committee of the CSRC. According to the announcement of the company on December 1, 2021, the company signed the non-public development bank share subscription agreement with effective conditions with China Mobile. The issuance object of this non-public offering is China Mobile, the issuance price is 17.67 yuan / share, and the number of shares issued is 288, 624, 700. It is planned to subscribe for the shares of this non-public offering in cash.
Introduce China Mobile as a strategic investor to enhance market competitiveness and realize resource coordination: according to the announcement and calculation in December, after the equity change is completed, China Mobile is expected to hold 9.5% of the company's shares 64%, will become the second largest shareholder of the company, and plans to hold the company's shares for more than three years. We believe that in the future, the two sides will complement each other's advantages and coordinate resources in global market development, technological innovation and industrial cooperation, so as to help the company's AI transformation and business expansion. In 2020, China Mobile will have a total of 13.84 million government and enterprise customers, 870 million Internet of things smart connections, more than 8000 self operated business halls and 300000 cooperative business halls. It has strong advantages in brand, channel, customers and products. It is expected to cooperate in research and development around multiple business scenarios, so as to sink Dahua's channels Provide innovative product breakthrough and industry expansion support for solution integration and business scale expansion in overseas markets. Jointly promote industrial cooperation, deepen the upstream and downstream integration of the industrial chain, and realize ecological construction and industry investment coordination.
Improve the AI landing ability of raised investment projects, and strengthen the construction of software platform and scene landing: according to the announcement, through this issuance, the asset liability ratio of the company will continue to be optimized, the solvency will be improved, and the profitability and stable operation will be ensured. The total amount of funds to be raised by the non-public offering shall not exceed 5.1 billion yuan (including this amount), which is intended to be used for "smart IOT solution R & D and industrialization project", "Hangzhou intelligent manufacturing base phase II construction project", "Xi'an R & D center construction project", " Zhejiang Dahua Technology Co.Ltd(002236) southwest R & D center new project" and supplementary working capital. 1) Improve AI situational landing capability: the R & D and industrialization project of smart IOT solution plans to invest 930 million yuan, which will strengthen the R & D of medium and Taiwan key technology products such as cloud computing, big data and audio and video fusion perception processing, as well as the development of industrial software. 2) Enhance core R & D capability: the Xi'an and southwest R & D center project plans to raise 890 million yuan and 1.005 billion yuan, which will enhance the company's technical reserves in artificial intelligence technology and core technologies such as 5g, Internet of things and multi-dimensional perception. 3) By introducing capital raising and efficiency increasing projects, Hangzhou plans to increase its production capacity by 7.6 billion yuan and increase the efficiency of its second phase equipment production chain. It plans to introduce capital raising and intelligent equipment production line construction to meet the demand of 7.7 billion yuan. The raised investment project can further give play to the scale effect, improve the product efficiency of software platform, realize the openness of algorithm ability, accelerate AI empowerment, and continuously implement scenario solutions in multiple fields to realize the sustainable development of the company.
Investment suggestion: the proposed private placement is approved, and China Mobile is introduced as a strategic investor. It is expected to further promote the company's business and accelerate the implementation of a I scenario through strategic coordination. We estimate that the company's revenue from 2021 to 2023 will be 31.164 billion yuan, 37.310 billion yuan and 44.637 billion yuan respectively, and the net profit attributable to the parent company will be 4.376 billion yuan, 5.179 billion yuan and 6.492 billion yuan respectively; Maintain the investment rating of buy-a.
Risk warning: the risk that the market demand is less than expected; The risk that the expansion of new markets is less than expected; Geopolitical risks; The recovery of the epidemic is less than expected.
