标题：Siyuan ElectricVenture into the market of inspection & power utilization services
发布日期：2016-01-27 7:24:05
内容： What happened Siyuan invested Rmb40mn (Rmb25mn from its own funds) to establish Siyuan Judian with Shanghai Ju Dian (60% stakeby Siyuan), aiming to explore the market of electrical equipment inspection products & services. It also plans to acquirea 25.37% stake in Shanghai Fangrong Power with Rmb27.2mn from its own funds to expand the smart powerdistribution & utilization business. Comments Establishment of Siyuan Judian to explore the market of electrical equipment inspection products &services. Shanghai Ju Dian mainly provides partial discharge sensors, electrical equipment partial discharge onlinemonitors, and portable electrical detectors. Its partial discharging test on State Grid and Southern Power Grid’s 10kV～1000kV electrical equipment confirmed multiple defects and helped avoid potential accidents. Siyuan Judian will focuson the inspection products & services for electrical equipment and is expected to contribute ~Rmb28mn revenue and~Rmb5.2mn net profit in 2017. Shareholding in Shanghai Fangrong to expand the smart power distribution & utilization business;potential beneficiary of the power reform. According to the agreement, following Siyuan’s Rmb27.2mn investmentin Shanghai Fangrong Power, Fangrong Sci-Tech’s former shareholders would transfer all of their stakes in FangrongSci-Tech to Fangrong Power at a consideration of no higher than Rmb1.26mn. After the transfer, Fangrong Sci-Tech willbecome Fangrong Power’s fully-owned subsidiary, which is expected to provide corporate clients with smart operation ofpower substations & distribution stations, solutions for corporate grid cloud platform and value added services.Currently, Fangrong Sci-Tech has completed its R&D of smart distribution grid cloud platform and system; FangrongPower’s former shareholders promised no less than 369 stations connected to the cloud platform by end-2016. Withmore stations connected to the cloud platform, a business model should be built in the future. Considering theaccelerated power reform, the earnings outlook is promising. Maintain BUY. Maintain our 2015/16/17e EPS forecast of Rmb0.60/Rmb0.73/Rmb0.87, implying 25x/20x/17x P/E.Keep TP of Rmb19, implying 26x 2016e P/E.
发布日期：2016-01-27 7:24:05
内容： What happened Siyuan invested Rmb40mn (Rmb25mn from its own funds) to establish Siyuan Judian with Shanghai Ju Dian (60% stakeby Siyuan), aiming to explore the market of electrical equipment inspection products & services. It also plans to acquirea 25.37% stake in Shanghai Fangrong Power with Rmb27.2mn from its own funds to expand the smart powerdistribution & utilization business. Comments Establishment of Siyuan Judian to explore the market of electrical equipment inspection products &services. Shanghai Ju Dian mainly provides partial discharge sensors, electrical equipment partial discharge onlinemonitors, and portable electrical detectors. Its partial discharging test on State Grid and Southern Power Grid’s 10kV～1000kV electrical equipment confirmed multiple defects and helped avoid potential accidents. Siyuan Judian will focuson the inspection products & services for electrical equipment and is expected to contribute ~Rmb28mn revenue and~Rmb5.2mn net profit in 2017. Shareholding in Shanghai Fangrong to expand the smart power distribution & utilization business;potential beneficiary of the power reform. According to the agreement, following Siyuan’s Rmb27.2mn investmentin Shanghai Fangrong Power, Fangrong Sci-Tech’s former shareholders would transfer all of their stakes in FangrongSci-Tech to Fangrong Power at a consideration of no higher than Rmb1.26mn. After the transfer, Fangrong Sci-Tech willbecome Fangrong Power’s fully-owned subsidiary, which is expected to provide corporate clients with smart operation ofpower substations & distribution stations, solutions for corporate grid cloud platform and value added services.Currently, Fangrong Sci-Tech has completed its R&D of smart distribution grid cloud platform and system; FangrongPower’s former shareholders promised no less than 369 stations connected to the cloud platform by end-2016. Withmore stations connected to the cloud platform, a business model should be built in the future. Considering theaccelerated power reform, the earnings outlook is promising. Maintain BUY. Maintain our 2015/16/17e EPS forecast of Rmb0.60/Rmb0.73/Rmb0.87, implying 25x/20x/17x P/E.Keep TP of Rmb19, implying 26x 2016e P/E.
