\u3000\u3000 Xiangtan Electric Manufacturing Co.Ltd(600416) (600416)
Further expansion of electromagnetic business and promotion of ground launch projects
The company issued the fixed increase plan for 2022. The total amount of funds to be raised by the company does not exceed RMB 300 million (including this amount). After deducting the issuance expenses, it is intended to be used for the serial development and industrialization of on-board special launch equipment system, the serial development and industrialization of rail transit efficient traction system and energy-saving equipment Acquire 29.98% equity of Xiangdian power and supplement working capital.
It is proposed to acquire and complete the 100% equity holding of the main body Xiangdian power, showing the determination to focus on the main business and adding the adjustment factors of senior executives. It is expected that the enterprise’s operating ability / profitability will continue to improve
In this fixed increase plan, the company plans to acquire 29.98% equity of Xiangdian power, superimposed on the announcement on the change of some senior managers issued by the company, and appointed Mr. Zhang Yuelei, the current general manager of Xiangdian power and the chairman of Tongda electromagnetic energy Co., Ltd., as the new general manager of the company. We believe that senior management adjustment + acquisition of the equity of Xiangdian power is an important strategic transformation for the company to focus on the core business of military industry and straighten out the management system: as the current general manager of Xiangdian power and the chairman of Tongda electromagnetic energy Co., Ltd., Mr. Zhang Yuelei serves as the general manager of the listed company and reflects the company’s determination to integrate the core business of integrated power propulsion system + electromagnetic ejection, With the development of naval equipment, the main military industry is expected to achieve rapid and large-scale production.
After the company’s management system is straightened out, the relevant incentive mechanism (disguised equity incentive) is realized to drive the rapid release of the company’s performance. The company issued the management measures for medium and long-term Awards (for Trial Implementation) at the same time. The company takes the net profit achieved in the highest year in history as the reference base for the first time. When the actual annual profit exceeds the base, the medium and long-term awards can be implemented. The company determines the growth proportion of the net profit target of the current year according to the specific situation of the market and industry every year, and then determines the reward proportion of excess profit on this basis. The reward will be cashed in cash by the company before the end of June of the next year, and will be granted to the reward object at one time after being reviewed and approved by the board of directors. The reward object will purchase shares in the secondary market through the secondary market. The company will sign the medium and long-term reward agreement with the reward object to agree on the rights and obligations of both parties. We believe that the implementation of the company’s incentive mechanism is expected to further stimulate the enthusiasm of employees, further improve the company’s production scheduling, and accelerate the release of performance.
The ship power system is expected to convert from pure fuel to electric energy. The enterprises of the integrated electric propulsion Department hope to enjoy nearly 100 billion industrial space. The market concentration of the integrated electric propulsion system is high. In 2018, the market share of the world’s top three leading suppliers (abb, GE and Siemens in Sweden) exceeded 80%, and the market concentration of China Cssc Holdings Limited(600150) integrated electric propulsion system is also high. The participants include Xiangtan Electric Manufacturing Co.Ltd(600416) , China Shipbuilding Industry Group Power Co.Ltd(600482) CRRC. In 2018, the scale of China’s comprehensive electric propulsion market was only 1.890 billion yuan, which is in the early stage of industry development, and the annual growth space in the future will reach 84.98 billion yuan: ① military ships: from 2020 to 2030, the average annual cost of Chinese military ships was 12.96 billion US dollars (90.072 billion yuan), corresponding to the demand for ship power system of about 18.014 billion yuan; ② Civilian ships: the comprehensive electric propulsion output value of the civil market may have about 35 times the growth space, and the annual output value increment in the future is about 66.97 billion yuan.
Xiangdian power electric push / launch core technology is the only one in China and continues to expand its business (vehicle mounted special launch) to build industrial barriers. The company is an old military supporting enterprise in China. After the asset stripping is completed in 2020, its business will focus on the three advantageous sectors of “motor + electric control + electromagnetic energy”. The core technology mastered by the company in the field of military equipment manufacturing is mainly the engineering of special equipment propulsion technology and launch technology developed by China’s top high-tech expert team. It is the most advanced technology in China and the most cutting-edge technology in the world. Its subsidiary Xiangdian power is the only enterprise in China with this core technology. In this fixed increase plan, the company will further expand the downstream field to the vehicle mounted special launch industry, and it is expected that the expansion of other horizontal fields will also continue. We believe that the company, as the only enterprise subject with the core technology of special equipment promotion / launch in China, continues to promote the iteration and market-oriented implementation of all electric technology innovation, and is expected to maintain its technical advantage and monopoly industrial position for a long time. The company’s products may achieve rapid and large-scale production with the demand for military and civilian products in the “14th five year plan” of the industry.
Profit forecast and rating: To sum up, after the adjustment of the company’s senior executives, the core main business integrated electric propulsion system / electromagnetic ejection business has realized the focus of the main business, and the large order of military products indicates that the business may enter a significant volume stage; At the same time, the civil products motor business is expected to fully benefit from the demand growth in the downstream wind power field, and the corresponding business is expected to accelerate production scheduling. Maintaining the previous profit forecast, it is expected that the company will achieve operating revenue of RMB 4.740, 6.273 and 8.015 billion from 2021 to 23, corresponding to net profit attributable to the parent of RMB 125, 302 and 458 million, corresponding to PE of 163.50, 67.77 and 44.73x, maintaining the “buy” rating
