Neway shares (603699) research briefing: plan to acquire German EIH in cash to enhance the growth potential of overseas markets

Neway shares (603699) research briefing: plan to acquire German EIH in cash to enhance the growth potential of overseas markets
With the strategic cooperation of mid-to-high-end new product development and deep mining of oil and gas exploration and petrochemical major customers, if the successful acquisition of German EIH will help expand the Western European market of over 8 billion US dollars; the domestic oil and gas pipeline network construction is expected to accelerate in 2020-2021, and nuclear power constructionThe restart will accelerate the growth of Neway’s revenue.China’s industrial valve leader will usher in rapid growth potential. It is expected that the company will return to its mother net profit in 2019-2021.39, 5.92 (+0.21) and 7.94 (+0.31) 100 million yuan, with a compound growth rate of 42.5%, maintaining “strongly recommended”. Plan to acquire 100% equity of German EIH with its own cash and enhance the growth potential of overseas markets. Neway Shares announced that it will acquire 100% equity of German EIH GmbH with its own funds of 11.3 million euros. EIH is German oil, gas, electricity, power, and shipping., Air separation and petrochemical industry engineering contracting solution provider, including German standard gate valves, valve spare parts and special application valves, the main business areas in Western Europe, North America and Asia, 2018 EIH revenue of about 3.350,000 yuan, net profit 8.68 million yuan.Neway’s acquisition of Germany’s EIH in cash will help open the German-standard market and help expand Neway’s European market size and influence, thereby enhancing Neway’s overseas business revenue growth potential. It is estimated that the demand for industrial valves in Europe in 2019 is 9.7 billion US dollars. Ball valve gate valves are mainly based on McIlroy data. In 2015, the demand for industrial valves in Europe (including the CIS countries) accounted for 23% of the world, of which Eastern Europe and Western European countries accounted for approximately2% and 14%; refining, chemical, oil and gas extraction and power demand account for 62% of the European industrial valve market, of which ball valves account for approximately 21%, butterfly valves 15%, and gate valves account for approximately 45%.McIlvaine expects the global industrial valve market to be 645 in 2019.USD 200 million, of which more than USD 50 billion will be renovated, accounting for about 80%.Based on a total of 15% in Eastern and Western Europe, the demand for industrial valves in Europe in 2019 is approximately $ 9.7 billion. Merger and acquisition of German-standard EIH is conducive to the development of over 8 billion US dollars in the Western European market. General industrial valves account for about 2% to 3% of the total project investment. Although the proportion is not high, it is important for safety, stable production or operation, so each regional marketThere are access standards for valves, such as American API standards.The EIH that Neway intends to acquire meets German standard qualifications, and the German standard is generally applicable 夜来香体验网 to or higher than European Union market standards. If Neway successfully acquires EIH, it will help Newey ‘s gate valves, ball valves and butterfly valves to expand more than $ 8 billion in Western Europe.Market, boots enhance Neway’s international layout and overseas revenue growth potential. Risk reminder: risks in foreign markets and exchange rate fluctuations, promotion of new products, and expansion of new customers