Kodak Jeneng (600499) Incident Review: Dingzeng Dates New Major Shareholder Company Development Enters New Stage

Kodak Jeneng (600499) Incident Review: Dingzeng Dates New Major Shareholder Company Development Enters New Stage
Event: The company announced on the evening of February 24 that the company’s non-public offering of shares was approved by the CSRC, and the company’s non-public offering did not exceed 3.1.1 billion new shares, the approval is valid for 12 months.We commented as follows: Key points of investment: Dingzeng ceramics war investment, major shareholder changed to Liang Tongcan, the company’s development entered a new stage April 10, 2019, the company issued a non-public offering of stock plan: the proposed fundraising will not exceed 14.68 ppm, three-year term, raised funds11.8 million US dollars repayment of bank loans, 2.$ 8.8 billion to supplement working capital.Dingzeng has now been approved.The subscription targets for this increase are Liang Tongcan, Ye Sheng Investment, and Xie Yuezeng. The subscription ratios are 69.35%, 17.03%, 13.62%, Liang Tongcan is the chairman of Guangdong Hongyu Group and the chairman of Foshan Ceramics Industry Association. He gradually purchases the company’s stock through the secondary market. The current shareholding ratio is 7%. After the completion of the increase, Liang Tongcan will become the company’s largest shareholder.Ye Delin, the actual controller of Ye Sheng Investment, is chairman of Guangdong Xinmingzhu Ceramics Group, vice chairman of Foshan ceramics industry, and a United Nations holding company1.53% stake. Xie Yuezeng is the controlling shareholder of Guangdong Jiamei Ceramics and the second largest shareholder of Marco Polo, and will hold the company 2 after the completion of the issuance.27% equity.The company’s proposed war capitulation is the company’s downstream customers. It has a certain market distribution in the ceramics industry. It is expected to help the company expand the ceramic machinery upgrade market and overseas ceramics business. The company’s development has entered a new stage. Building materials machinery continues to bottom out and waits for the turning point to appear. African ceramics factories have been developing steadily in recent years. The internal downstream ceramics industry has faced the elimination of backward production capacity, reshuffles, and changes in strategic adjustments. The ceramic machinery market has insufficient demand but overseas orders have improved.increase.Ceramic machinery continues to bottom out, but the inflection point may appear: 1) The capacity reduction of downstream ceramic factories has basically ended. After this round of capacity elimination, the market share of total leading enterprises has increased, and due to increased labor costs, increased ceramic demand and other factorsThe impact of ceramic machinery upgrading is imminent. As a domestic leader, the company is expected to benefit. At the same time, the company is determined to increase its investment in ceramic warfare. As a result, the company will obtain the opportunity to upgrade and reform the ceramic production line of these 3 shareholders, and then promote it in the industry.The machinery industry is expected to bottom out and rebound; 2) The company vigorously lays out a “strategic” strategy. India and Turkey subsidiaries and Kodak Europe were successively established. In order to lay the 杭州桑拿 foundation for expanding overseas markets, the company acquired two well-known Italian thick brick manufacturing companiesThe contract for the entire line of brick and ultra-thick brick ceramics has achieved a breakthrough in the Italian market. It competes with the global leader Sacmi in the local market and takes advantage of prices and services. The European market is expected to usher in development opportunities.The second phase of the African ceramics factory Ghana and the Senegal project have also been successfully put into production in 2019. Currently, it has been deployed in 4 countries. In the future, it plans to expand to other countries such as Zambia. The overseas ceramics business has developed steadily.The company’s 2019 performance forecast realizes the net profit attributable to shareholders of listed companies1.1-1.300 million, compared with -5 of last year.89 trillion points, turning losses into profits, the inflection point of performance has initially appeared, and follow-up attention to 2020 performance. Lanke Lithium expands production 2 and enters production soon, it is expected to usher in the phase of volume and price rise. Lanke Lithium expands production 2 and enters industrial grade lithium carbonate production capacity. The current production is smooth. It achieved 4,823 tons of output in the first half of 2019.Net profit of 68.03 million yuan.Expansion 2 predicts that the construction progress of battery-level lithium carbonate projects has improved due to financial problems, and is expected to be completed and put into operation in the first half of 2020.As the price of lithium carbonate bottoms out, Lanke Lithium is expected to usher in a period of rising volume and price, and the company’s investment income will improve.At the same time, Tesla intends to use cobalt-free batteries in electric vehicles in the Shanghai plant. The demand for lithium iron phosphate has been marginally improved. Lithium carbonate as a raw material will directly benefit. Lanke Lithium is one of the leading companies in domestic salt lake lithium extraction.Will fully benefit. Earnings forecast and investment rating: We are optimistic about the turning point of the company’s main business of ceramic machinery. At the same time, the participating company Lanke Lithium will enter the stage of rising volume and price.Regarding the impact of non-public issuance of shares on the company’s performance and equity for the time being, it is expected that the company’s EPS for 2019-2021 will be 0.08, 0.36, 0.47 yuan, corresponding to the current expected PE is 69, 15, 11 times, maintaining the company’s “overweight” rating. Risk reminders: downside risks to the macro economy, slow entry of overseas projects, risk of Lanke ‘s lithium capacity expansion being less than expected, risk of lower than expected lithium battery demand, risk of falling lithium carbonate prices, risk of rising raw material prices, non-public issuance of shares cannot be successfully completedRisk of new shareholders is lower than expected risk