Kelemechanical (603960): Issuance of convertible bonds is set to break through high-end production capacity
Event: The company issued a convertible bond issuance announcement on November 27, and the company issued a total of 1 convertible bond.
800 million, 6-year period, the initial conversion price is 27.
86 yuan / share.
The convertible bond issuance is settled, and the subscription will begin on December 2.
The company released the convertible bond plan as early as November 27, 2018. The total amount of funds raised from the issuance of convertible bonds was 1.
80 trillion, with a circulation of 180,000 hands.
The registration date of the cocoa bonds is November 29, and the purchase date is December 2.
The issuance of convertible bonds is 6 years, that is, from December 2, 2019 to December 1, 2025, the initial conversion price is 27.
86 yuan / share.
Breakthrough in intelligent manufacturing capacity growth is expected to increase performance orders.
All proceeds raised from the convertible bonds will be used for total investment1.
The $ 9.9 billion smart manufacturing production line expansion project is mainly aimed at the new energy vehicle market, adding five new types of flexible automated production 淡水桑拿网 lines (BRM production line, IB2 production line, 48DCDC production line, 3U driver production line and eAxle bridge production line), and fatigue of new energy vehicle drive motorAging test system complete equipment capacity.
According to the announcement, this project is expected to realize an actual sales income of 2 trillion and an internal after-tax internal rate of return (IRR) of 16 after the completion of production.
60%, dynamic payback period after tax is 6.
In 1994 (including the construction period), the first to three years of production compliance are 60%, 80%, and 100%, which will significantly increase the company’s order performance.
Layout of automated production lines and aging test systems, high-end product orders can be expected.
Among them, in terms of intelligent final assembly of on-board energy feedback controllers and on-line detection production 南京夜网 lines, the company has accumulated existing technology and sufficient engineering application experience, and has obtained global supply from Bosch IPB (Parking Brake) and BRM (Energy Recovery Acceleration Assist Controller).framework contract.
At present, the layout of the production line structure has been determined. Through the continuous expansion of the company’s production capacity, it will support the company’s product orders to continue to land.
As for the assembly of the new energy vehicle drive motor fatigue and fatigue test system, the company’s system is mainly for its own use and passes the cost of external enterprise testing services. According to this announcement, the company has had the first six-year contract with customers for the first test service.
With rich production capacity and mature market demand, it is expected to assemble and sell production lines.
Investment suggestion: As a leader in the field of automotive electronic equipment, the company has a thriving downstream market and an excellent competitive structure. It enjoys the bonus of engineers, gradually erodes the market share of foreign rivals, and continues to grow steadily.
From the consolidation caliber, the company’s net profit for 2019-2021 is expected to be 1.
34 trillion, the corresponding EPS is 0.
Maintain Buy-A rating and give 6-month target price of 35.
6 yuan, equivalent to 38 times the price-earnings ratio in 2020.
Risk warning: car sales are less than expected, downstream demand is growing, and new business expansion is less than expected.