\u3000\u3 China Vanke Co.Ltd(000002) 960 Jade Bird Fire Co.Ltd(002960) )
Event:
On April 19, 2022, Jade Bird Fire Co.Ltd(002960) issued the plan for non-public offering of shares, and the total amount of funds to be raised is no more than 2.206 billion yuan. In addition to 660 million yuan to supplement the company’s working capital, the rest of the funds will be invested in ” Jade Bird Fire Co.Ltd(002960) Safety Industrial Park”, “upgrading and expansion of Mianyang industrial base”, “construction of intelligent fire fighting platform”, “construction of overseas R & D and testing center” and other projects.
Key points of the report:
The fixed increase project is expected to increase the company’s production capacity and improve the layout of production bases
At present, the company has production bases in Beijing Tianjin Hebei, Southwest China and the Pearl River Delta, while there is no production capacity layout in the Yangtze River Delta where the sales revenue accounts for a relatively high proportion. Through this fixed increase, the company plans to use 1.012 billion yuan to raise funds to build Jade Bird Fire Co.Ltd(002960) Safety Industrial Park in the Yangtze River Delta, and use 401 million yuan to raise funds to upgrade, reconstruct and expand the existing production base in Mianyang. With the rapid development of the company’s business scale, this expansion will effectively strengthen the company’s capacity supply scale in the Yangtze River Delta and southwest, improve the company’s production base layout, and help the company better explore the Chinese market and increase market share.
Enhance R & D strength at home and abroad and enhance the company’s core competitiveness
The company attaches great importance to product R & D and technological innovation and continues to increase R & D investment. In 2021, the R & D investment reached 186 million yuan, a year-on-year increase of 35.11%. The company’s fire safety products have leading technical advantages in terms of stability, online rate, anti-interference, debugging convenience and so on, and are constantly innovating iteratively. The company plans to invest 54 million yuan in the construction of intelligent fire fighting platform and 80 million yuan in the construction of overseas R & D and testing center, so as to help the company further enhance its R & D strength at home and abroad, effectively improve the company’s product R & D, certification and testing capabilities in China and international markets, and help the coverage of the company’s products in Chinese and foreign markets.
The “14th five year plan” for national fire protection work was issued to accelerate the liquidation of the industry and optimize the competition pattern
Recently, the work safety committee of the State Council issued the national fire protection work plan during the 14th Five Year Plan period, proposing to achieve two core indicators during the 14th Five Year Plan period, namely, the fire accident mortality (%) per million people is ≤ 0.29, and 100000 people have fire stations (stations) ≥ 0.74. The introduction of the plan will further improve the standardization of the fire industry and the requirements for the quality of fire products. In the future, the market concentration of the fire industry is expected to increase. The company will accelerate its occupation of the market and consolidate its leading position in the industry with its own brand and technical advantages.
Investment advice and profit forecast
In the future, the company will enjoy the development space brought by the increase of market share in the fire industry, and continue to realize its performance with rich product matrix and strong sales channels. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 713 / 972 / 1272 million yuan respectively, with a year-on-year increase of 34.50% / 36.33% / 30.89%. The current share price corresponds to EPS of 2.04/2.79/3.65 and PE of 18.2/13.4/10.2 times respectively, maintaining the “buy” rating.
Risk tips
Market competition intensifies risks, the growth rate of energy storage business is lower than expected risks, and the expansion of emergency evacuation market is lower than expected risks
