event:
1. The company announced on July 21st that it signed a "Strategic Cooperation Letter of Intent" with Zhongda Real Estate Group Co., Ltd. (Zhongda Real Estate). The company's Shenzhen Decoration Art Decoration Design Co., Ltd. (decoration art) and Hangzhou Zhonghao Guoshun Real Estate Co., Ltd. Co., Ltd. (Zhonghao Guoshun) signed the "Strategic Cooperation Letter of Intent", the company and the decoration art as the only cooperation unit of Zhongda Real Estate and Zhonghao Guoshun's real estate on-site home improvement consulting and home improvement solution marketing, providing decoration and curtain wall , installation, garden landscape, intelligent, integrated home and other services.
2. On the same day, the company's shareholding subsidiary Yingchuang Building Technology (Shanghai) Co., Ltd. signed an agreement with CIC Xineng (Beijing) Technology Development Co., Ltd., titled free 3D printing "KIP" pavilion at Expo Milano 2015, and signed cooperation with MRVARUNSHARMA & ASSOCIATES The agreement and the establishment of a joint venture company to enter the Indian market.
3. The second phase of the company's employee stock ownership plan was issued, including holdings, joint stock companies and subsidiaries, senior executives of Sun Company, middle management personnel and key employees. At present, the number of participants is not more than 640, and the capital limit of the shareholding plan is 1 100 million yuan, Guosen Securities (22.66, 0.370, 1.66%) 1:1 capital allocation of 100 million yuan, a total of 200 million yuan, the company provides bottom-up guarantee for the employee stock ownership plan, the employee's own capital return rate is not less than 15% / year (through assessment) and 7.5% / year (not passed assessment).
Investment points:
Jointly with Zhongda Real Estate to increase the company's market share in the major cities of the Yangtze River Valley, and promote the “Mushroom+†of Internet home improvement. Founded in 1992, Zhongda Real Estate is a subsidiary of Zhejiang Zhongda (22.13, 2.010, 9.99%) Yuantong Group (600704.sh) and an important member of Zhejiang Property Group with a registered capital of 800 million yuan. First-class qualification for comprehensive development of real estate. It has regional companies such as Shanghai, Hangzhou, Wuxi, Nanchang, Wuhan, Chengdu, Ningbo, Zhangzhou and Fuyang. At present, it has developed more than ten quality projects in major cities in the Yangtze River Basin. The cooperation between the company and Zhongda Real Estate will not only help to increase the market share of the home improvement market in the above cities, but also help accelerate the promotion of the company's Internet home improvement strategy. The cooperation between decoration art and Zhonghao Guoshun is an important landing of the company's “Mushroom+†brand. “Mushroom+†uses the Internet concept and advanced IT technology to integrate design, hardwear, soft furnishings, furniture and home appliances into one. A complete home-centered ecosystem, with F2C as the core to integrate the supply chain, provides customers with one-stop integrated solutions, de-intermediation, de-channelization and standardization, eliminating the pain points of traditional home improvement. We are optimistic about the promotion of the company's Internet home improvement strategy and the development of the “Mushroom+†brand. With the gradual implementation of franchisees, central warehouses and supply chain construction, “Mushroom+†will be very attractive and competitive.
3D printing into the Milan Expo will hope to increase the company's popularity, test the water market in India to actively expand overseas business. The company's Yingchuang Technology is the world's first high-tech enterprise to truly realize the construction of 3D printed building products. It has a number of industry-leading technologies. This time, the actual 3D printed large-scale construction products were placed at the Milan Expo for public display. The way is to improve the company's visibility and influence and accelerate the pace of large-scale application. The cooperation with MRVARUNSHARMA&ASSOCIATES not only brings in a profit of US$9 million to Yingchuang Technology, but also helps Yingchuang Technology and the company to develop overseas business. As a member of the BRICS countries and a country along the Belt and Road (2448.02, 23.820, 0.98%), India has a large population and a large demand for housing construction. 3D printing technology has a broad application space. We believe that the trial of the Indian market will be correct. Yingchuang Technology and the company's future international operations have a positive impact.
The implementation of the second employee stock ownership plan will enhance the company's cohesiveness. The second employee stock ownership plan covers a wider range, including the high and middle management personnel and business backbone personnel of Zihe Sun Company, which means that Yingchuang Technology, Xuanwei Network and Wanan Smart are shouldering the shares of Yaxia (24.80, 0.650, 2.69%) Relevant personnel of the secondary company who built technical barriers in 3D printing, home improvement design and intelligent building can also participate, and the controlling shareholder of the company provides guarantees, and the benefits of employees are guaranteed. We believe that this move has enhanced the company's cohesiveness and centripetal force, and also reflects the company's unanimous confidence in the future development.
The country's residential industrialization base has been evaluated, and the industry's influence has been continuously improved. The Ministry of Housing and Urban-Rural Development's recognition of the company's “National Housing Industrialization Base†indicates that the company's industrialization and standardization level is at an advanced level in the industry. The company plans to build a more complete residential decoration industry chain in the future, and build it into a national demonstration and guiding role. R&D, production and system integration base for residential interior decoration in line with the development direction of residential industrialization. We believe that the company's development direction in residential industrialization, Internet home improvement, 3D printing and intelligent buildings is in line with the "Made in China 2025" orientation, optimistic about the company's "outer, interior, installation, home improvement, soft decoration" professional chain of professional contracting mode.
After the resumption of trading, the stock price adjustment brought a reasonable valuation. The company's growth was good. The employee stock ownership plan and senior management increased the margin of safety and maintained the “Buy†rating. We forecast that the company's 2015-2017 EPS forecasts are 0.90 yuan, 1.05 yuan, and 1.21 yuan (diluted according to the latest share capital), and the corresponding valuations are 26.5 times, 22.6 times, and 19.5 times, respectively, maintaining a "buy" rating.
Risk warning: macroeconomic macro-volatility risk, real estate sales do not reach the expected risk, and the Internet home improvement strategy does not reach the expected risk.
(Editor)
Guangzhou Ruixin Touch Control Technology Co., Ltd. , https://www.smartpaneltv.nl