Fuxing Xiao Cheng Technology sailing nuggets Ghana odds geometry

-Our correspondent Fu Jia a few days ago, the lucky star to hand over the list of the worst since the listing of a report card, the first three quarters of the company deducted the net profit fell close to 40%. In fact, the lucky days this year has been very bad, whether it is the company's fundamentals, financial statements data, or two-tier market performance, there is no bright spot, and the original large shareholder exit, raise capital to fill the hole, overseas project hysteresis, can be interpreted as bearish. However, in August, a common directional additional, but became the starting point for the start of the valuation of the Lucky Star, a short period of two months, the company's share price has risen by more than one, the same period as the gem in addition to the largest one of the cattle stocks. Why is the fund in such a time to pursue such a listed company, the Lucky Star Xiao Cheng to attract the attention of the market? A number of industry and investment sectors to the China Securities News reporter, linked to the issue is the market is expected to the number of Lucky Star in Ghana, several projects are on the eve of the outbreak, the implementation of the issuance of the company's previous expectations of the project will be greatly accelerated progress in Ghana. However, Ghana is far from most investors, although there are market participants optimistic that the company 2015 earnings per share will reach 2.5 yuan, but the stock price support can not always rely on expectations, Fuxing Xiao Cheng must be in the next year to take out the financial statements of gold and silver, otherwise, the truth, will be difficult to escape the embarrassment of "naked swimming". Management Junlingzhuang to regain confidence a longtime tracker analyst points out that the business focus and resources of the future fuxing will be quickly shifted to the Ghanaian project. "A stark example is that the company's largest shareholder, chairman Cheng himself and the backbone of the company's business are now a long time in Ghana to advance the project, a great deal of power, this and other companies to implement overseas projects is very different." September 19, 2011, Fuxing Xiao Cheng announced that the company on September 14, 2011 and Ghana National Power Company (ECG) signed the "reduction of line loss and related power grid transformation contract", officially began in Ghana power grid transformation and operation business, involving 450,000 users, reduce the loss of income by the two sides, the company accounted for 80 %。 Some people in the industry after the preliminary calculation, the company can get a yearly income of 398 million yuan, such as 20% of the net sales rate calculation, the corresponding net profit scale of nearly 80 million yuan. According to the contract Annex financial model and ECG over the past three years the annual electricity price and electricity consumption growth, the company's annual earnings will also increase by 10% in the contract period. The transformation and operation of the Ghana power grid indicates the essential change of the business model of Fuxing Xiao Cheng, which will be transformed by the energy electronics manufacturer into the general package manufacturer (EPC) of the energy industry. Starting with the project, in recent years, Fuxing has won several projects in Ghana, the core of which is loss reduction projects, including a 20 MW PV power Plant project, a power distribution project, a bot project (mainly for local users in Ghana to replace smart meters). In this issue, the company proposed an increase in funding 258 million yuan. Cheng told China Securities Daily that much of the fundraising would be spent on Ghana's project investments. Fuxing XiaoCheng Secret Wang Ganjing introduced, with the Ghana project as an example of the big head loss, the project investment in the total amount of 100 million U.S. dollars, the current company can invest only about 450 million yuan RMB, there are still more than 100 million yuan in the fund gap. Overseas business progress is lower than expected, is the best management of Fuxing Xiao-cheng Heart. "Engineering projects are first put into production, if the progress is slow, it means that the money back and income node has become a big problem." This is also the main reason for the company's poor performance in recent years. Since this year, our overseas project construction progress has been accelerated, but also concentrated on generating a large number of receivables need to be in the future, so the company's financial value has fallen so fast. "Wang Ganjing said. Lucky Star Xiao Cheng currently has two subsidiaries are the implementation of the Ghana project, respectively, 65% of the Ghanaian CB electric and wholly-owned Xiao Chengana, in the future for quite some time, they are the lifeline of the lucky business. October 2012, the Ghanaian CB Electric announced the delay in delivery of the bot project, which was scheduled to be delivered in November 2013. Although the lucky Star is due to extend the delivery date to November 2016, the Ghana CB will receive an additional three years of operational benefits, but the market is more concerned about why the project is sluggish. Cheng admits that while the political and economic environment in Ghana does not have the ultimate risk of the project, the company did get some interference in the local project, some from the internal level and more from unfamiliar local conditions. For example, the local power grid facilities than expected to lag behind, there is the local cultural problems, these problems in the late 2013, the basic step-by-step solution, the project progress can be accelerated. "At present, the Ghana project also has to be accelerated." "he said. Public information shows that the Ghana project has a total of 450,000 meters installed, this year to complete 17.2 million installation. Last year, the company installed only 100,000 or so, which means that the Fuxing Chengana project this year's business speed may be significantly accelerated. According to the company's latest plan, 450,000 meters to complete the installation by the end of next year.　In other words, the Ghana project will be fully harvested by the end of next year. The feasibility of late implementation of the model is the touchstone. To date, the industry is still arguing about the future of the Lucky star Xiao Cheng after one year of listing. It has been pointed out that, although the domestic smart grid construction speed has passed the highest peak, but in the next period of time the market will be a gem of the volume of the company has no problem. and Fuxing Xiao Cheng that, after the listing, the company management foresaw two problems, one is the future profits must be diluted, and the second is that there are many projects flagging in the domestic can not be achieved, these became the company eventually to the EPC transformation of a reason. The analyst agrees with the corporate perspective. He said that the project in Ghana, with the qualifications and strength of the Lucky Star, was simply not in place at home, as it was determined by the multiple links between policy, business size and market environment. As a private enterprise, the evaluation of a project must be profit as the first starting point."Two projects, an internal rate of return is 25%, the other is 35-40%, this choice is good for the company to do." "" Fuxing Xiao Cheng, plainly is the technical output. Such things, 20-30 years ago, the European and American enterprises to China. Over the years, the state Grid [Weibo] has been doing so for the power sector. It can be said that the role of the Lucky Star in Ghana project and the National Grid is similar, but because of the size and strength of the business, the lucky no way to undertake a special big project. and private enterprises all to profit, so the choice is the direction of a stable African countries in the most economically developed regions, in order to lock the risk. "Looking at the State grid in recent years, the export of its business abroad is too numerous." In August of this year, the State Grid international Development Limited, a wholly owned subsidiary of the National Grid, signed an agreement with the Italian deposit and Loan Company (CDP) to acquire a 35% per cent stake in CDP Retl, a wholly-owned subsidiary of CDP, amounting to € 2.1 billion. This is China's current largest single investment in Italy. In recent years, the state grid companies in the Philippines, Brazil, Portugal, Australia, Hong Kong, Italy and other countries and regions completed a number of investments. It is reported that the National Grid set a clear goal: by 2015, 2020, the scale of overseas power assets reached the company's total assets of 8%, 10%, the international business profit contribution rate of more than 15%, 20% respectively. Data show that as of June 2014, the State Grid investment in the real capital of nearly 3 billion U.S. dollars, overseas equity investment of more than 11 billion U.S. dollars, overseas assets of more than 23 billion U.S. dollars. "China's smart grid has been adhering to the use of independent technology, and downstream market has been better, which makes China's smart grid technology in the global core competitiveness." At present, the advantages of the industry is not much, but also because of this, smart grid technology overseas output in the profitability can be better achieved. Wang Ganjing also disclosed to the Chinese securities News reporter The reasons why the company had chosen to carry out the project in Ghana. Prior to the launch of the Lucky Star, CB Electric, a Chinese-American company in Ghana, is a customer of Fuxing Hsiao-cheng. At that time, the CB electric in the purchase of Fuxing Xiao Cheng's equipment encountered some problems, the need for technical team to debug, the company's executives through the CB Electric to understand the power market in Ghana and infrastructure development, found that there are larger markets. "At that time want to pull the CB electric business bigger, but at that time the company has no money, also can't talk to CB Electric to discuss the acquisition of things." Later, the listing financing has some cash, and through a period of time of the mapping, in the local continue to understand a bit, found that the project can be implemented. Therefore, the joint venture was established in Ghana CB Electric. Ghana CB is mainly the implementation of electricity meter Bot project. Later, in order to implement the loss, power plants, distribution network and other projects, but also set up a wholly-owned holdings of Xiao Chengana. The company's two subsidiaries in Ghana are so. "Through the analysis of the data before the parties, eliminate some complex financial projections, it is not difficult to find out the main line of Fuxing Xiao-Cheng's overseas business: A company that had been upstream, accidentally found a blue sea in the market and business transformation of the great opportunity, itself and have the technology can be realized, so, In the case of a limited rate of return in the domestic market, determined to break out of the overseas, and thus walked in the forefront of the power enterprises overseas riders, in the implementation process, also encountered many bumps, business advance repeatedly lower than expected, causing the company's performance was dragged down, causing the industry for its recent years some "do not work" question; The company's ownership structure has changed dramatically, and the company's founders have taken the biggest say in the board and are determined to push ahead quickly in the short term. "Fuxing Xiao Cheng's overseas projects in terms of income and model are recognized by the industry, the benefits can significantly increase the income and margin, optimize the financial structure, the model opened a private enterprise, with exemplary effects, and such projects can be replicated." By common sense, with project experience, similar projects will be implemented much faster in the future. The analyst said, "Now the two-tier market is more or expected to promote, the industry still think that after all, Chairman Cheng is the most understand the enterprise, he chose at this time overweight and promote the project, Nature has the truth." "The Ghana project has been in place for more than three years and the industry has been concerned about its implementation, and this August's issue is the most positive signal for the company to push ahead with its projects." "As time has been brewing, the industry's focus on the lucky star will focus on performance," a cautious analyst has warned. Company projects in foreign countries, analysts difficult to field research, the progress of the project, the company's position and market expectations is one thing, the actual implementation is another matter, analysts can only keep track. The future of the company's financial data can really get out of the trough, will be the lucky star Xiao Cheng overseas business prospects of the touchstone. "Analysts bold expected earnings surge" Fuxing Xiao's ideas on the Ghana project is very certain, uncertain is some uncontrollable factors. "The company has Junlingzhuang to the outside world about the progress of Ghana's projects, making bold analysts dare to make the most optimistic forecasts of the company's future earnings," one analyst said. "In early September, Fuxing Xiao Cheng had announced that the company received ECG on the Ghana Accra area to reduce line loss and related power grid renovation project Tariff adjustment notice, the project agreed to the settlement electricity price from 12 cents per degree to increase to 14-14 4 cents, up to 20%, The settlement start date is dated back to 2014 1st. Fuxing Xiao Cheng reported that the company's first half of the loss of the project has completed more than 150 Taiwan district 120,000 meters installed. Assuming that in accordance with the 2014 table 170,000, full use of ammeter 150,000 only calculated, electricity prices will increase the thickness of 180.0216 billion yuan, directly increase the thickness of the project net profit of 20%. This announcement sparked the industry's discussion of the linkage of the Fuxing project. In fact, in addition to the photovoltaic power plants under construction, in the performance sideFace, Fuxing Xiao Cheng in Ghana, many projects ultimately rely on the loss of projects, distribution projects, BOT projects are the extension of loss-reducing projects, it can be said that the loss of the project in the next period of time is the business core of Fuxing Xiao Cheng. There is not even a high level of recognition of Ghana's loss-reducing programs. Ghana is the second largest economy in West Africa and the most comprehensive political and economic environment in the world, and after the new millennium, its GDP has entered a period of rapid growth. Public data show that in 2001 Ghana's GDP was only $ more than 5 billion trillion, and 2013 that figure had jumped to around 48 billion dollars. Ghana's GDP grew by as much as 7.1% in 2013, according to Ghana's National news agency. As a former British colony, Ghana retained a good legal environment for Britain and the United States, and the lack of a major war, the widespread belief in Christianity, political stability and other factors made Ghana's comprehensive environment a better place in African countries, which also laid the foundation for the rapid growth of GDP. But with the rapid development of the economy, the short plate of electricity in Ghana began to be exposed, and the lack of electricity is a common phenomenon in the region. Moreover, due to technical backwardness, Ghana's electricity in the transport process, the loss rate is huge. The information disclosed before the Lucky star shows that the loss rate of ECG transmission has reached an astonishing 32% before the transformation. This means that ECG buys 100 degrees of electricity to the power plant, and eventually only 68 degrees of electricity are sold. "This is the power grid lag behind the factors, but also including the phenomenon of stealing electricity, the industrial and mining enterprises as the main part of the theft of electricity incidents occurred in the local." The analyst said, the fuxing Xiao's loss reduction project is through its technical renovation, the loss rate reduced to about 7%. This means that every 100 degrees of power loss will bring the ECG a 25-degree increase in electricity. Fuxing Xiao Chengana The business model of the project is that the company paid to help ECG complete the line transformation, and then from the 25-degree electricity to collect 80% of the proceeds, the other 20% of the proceeds to the ECG all, ten years later, the grid completely to the ECG operation, the company no longer enjoy the proceeds. According to the financial data, the Lucky Star in the 10 years of operation, about five years of time to recover the project construction costs, the remaining five years of the company's full profit phase. After the completion of the line operation cost is very small, can be neglected. "The logic of this project is easy to understand, given the circumstances of Africa." The analyst said that the Ghanaian government itself is short of money, if the bank's loans are more difficult, the amount of small do not say, and the bank on the loan initializes is very strict, to give you what to do, you want to replace the project is certainly not feasible. For ECG, the project is in line with its own interests, first, every 100 degrees of electricity, the company in the initial period can obtain 5-degree electricity incremental income, ten years later, 25 degrees all to their own, and the construction of the grid of money, almost do not have their own out. For the lucky Star, it will also get better benefits, the company does not have a domestic traditional product gross margin of more than 35%, and Ghana project operation after the comprehensive gross profit margin around 50-60%, individual can even reach 70%, and opened a blue sea market. It can be said that the deal is more than won. However, the outside world for the lucky star of the upstream to be able to play the project has been in doubt. Wang Ganjing to the China Securities News reporter that China's technology to achieve the loss rate of about 7%, is not very difficult. In the transformation of the Ghana power grid, the Fuxing technology first from the electricity meter, its own research and development of electric meters, and then derived a complete set of solutions, you can achieve the monitoring of each node, through the monitoring of traffic can be found which node of the abnormal loss of electricity, backstage can be in accordance with this to find out who is illegally stealing electricity. In addition, through the installation of electricity meters, these areas covered by the payment into a prepaid, to some extent, to solve the past ECG money can not receive the old problem. "The financial advantage of the project is that it comes back to cash flow." And, through the rapid rotation of cash flow, fuxing Xiao can for future business development lay the foundation. "This is why the industry is bullish on the project in 2011," the analyst said. But it turned out that the financial model of the project could not cover some of the unpredictable risks. For a variety of reasons, the Fuxing Xiao Chengana project in the promotion of less than expected, and the upfront investment money will not be returned in the short term, so that the company's financial data performance is poor. After properly solving some local problems, plus the additional "blood", Fuxing Xiao Chengana project is expected to be sluggish for a period of time after the return to the fast lane. Fuxing Hsiao-Cheng admits that the Ghana project in the implementation process has encountered many problems before, mainly in the company before the lack of similar projects experience, construction links and communication links have appeared some accidents. "After the change in the ownership structure, the company's management agreed that the Ghana project must be speeded up and that the company decided to complete the installation of the electricity meter by the end of next year, which means the project will start running from the beginning." The project is not all installed to collect money, is to open a section of charges. As the company's progress is relatively fast this year, the effectiveness of the project in early 2015 will be reflected in the financial statements. said the company responsible person. The Lucky star has another project in Ghana--photovoltaic power plants. Fuxing Xiao Cheng October 2013 on the construction of the Ghana Accra 20MW PV Power Station Project external announcement. It is estimated that after the completion of the plant, the first full year can achieve a net profit of 4.005 billion U.S. dollars. The company said in August this year that the current construction process of the project is more than half. Comprehensive company before the announcement of estimates, there are analysts bold forecast, Fuxing Xiao-cheng reduce the loss of the project annual profit of 200 million yuan, BOT project annual profit of 25 million Yuan, BT Project annual profit of 40 million yuan, 20 MW PV power station project annual profit of 35 million yuan. The company's total share capital will be expanded to 120 million shares after the launch. The Credit Securities Institute noted that in Ghana, the Government has focused on supporting and raising the price of contracts, business model replication can be expected, the company's performance inflection point and follow-up project development acceleration of the multipleBackground, the company 2014, 2015, 2016 EPS will reach 0.46 yuan, 2.5 yuan and 4.4 yuan. The expected surge in earnings may provide a boost to the company's valuations. The belief that the founder's helm will unleash the exit of the financial investor Fuk Galaxy and the founder's new Helm has left the market's fear of corporate governance receding, replacing the expectation that management is motivated to release performance for its own benefit. 2010, Fuxing Xiao Cheng Landing gem, its predecessor is currently the company's major shareholders, chairman Cheng in the 90 's founder of the Xiao Cheng industry and trade. Born in 1963, Cheng, engineer, Xiao Cheng industry and trade and the establishment of the majority of Chinese science and technology enterprises are "technology + capital" model embodiment. Before the company went public, the Fuxing group from Hubei was injected into a large shareholder, and the company was renamed the Lucky Star Xiao Cheng. An investment banker to the Chinese securities News reporter, Fuxing group's main business is real estate, when the background of the investment is the lucky charm of the lower reaches of the high enterprises hold a large amount of cash, and Xiao Cheng itself in the integrated circuit industry is also a good development company. Because the lucky star itself is not in the electronics business, the investor favours the financial investment, and the main resource comes from financial support and limited help in industrial resources, the person said. The main business of Fuxing Xiao Cheng is Power terminal carrier chip, a-share companies in the peer enterprises have Neusoft carrier, Hao Ninda, Solarfun Electronics, Samsung Electric, etc., but the business is differentiated, fuxing Xiao Cheng biased in the chip design, the East soft carrier early mainly to buy chip writing program, Hao Ninda, Solarfun Electronics, Samsung [Weibo] Electronic meter is mainly made of finished products, according to industry division should belong to the lower reaches of the fuxing. Fuxing Xiao Cheng recently listed in the past few years, the domestic smart grid is in the rapid development phase, but the fuxing Xiao Cheng that years of business development and the industry does not match the overall performance performance is passable. The ownership structure of Fuxing Hsiao-Cheng changed in the second half of last year. On behalf of the lucky one of the shareholders of Wuhan Lian won began to reduce the company's shares, after this year's big reduction, the current Wuhan Lian win has been the lucky all the shares of Xiao Cheng clear. Prior to this, the lucky star of another fortune Galaxy shareholder Wuhan Fuxing Bio-pharmaceutical company has already basically clear the company's shares. In this way, the original shareholding of 28.74% Cheng, became the company's first major shareholder. In contrast to the shareholder exit of the Galaxy, Cheng chose to increase holdings. August 1, Fuxing Xiao Cheng issued a plan, the company intends to actual control Cheng to not less than 25.82 yuan/share of the price of non-public offerings not more than 10 million shares, raise funds not more than 258 million yuan. After the implementation of the additional issue, Cheng in the company's largest shareholder status will be more solid. In the eyes of the outside world, this kind of listed company will add blood, or shareholders disguised overweight or not, similar story is not new. But open chart can find, this humble announcement, but became the fuse of the price was detonated. "Combing the development process of Fuxing Xiao Cheng can be seen, Cheng has beenIs the company's technical and business level of the soul figure. "The investment bankers said that Cheng in the company after the listing is not because of poor performance of the selection, but chose to increase the company's shares at this time, reflecting his future performance of the company optimistic. He said that as a major shareholder of the company, is certainly the biggest appeal to the interests, to make an increase in the behavior is based on the following points: First, I think that the value of today's cost-effective, the second is to strengthen corporate governance, three is optimistic about the future business performance. After the founder is in control of the overall situation, the business of the Lucky Star is also the focus of attention. The investment bankers believe that the issue is not for the incremental project, still is the fuxing Xiao Cheng Stock project funding. At the governance level, the company's name may be expected to change as the galaxy exits. Wang Ganjing, in an interview with the China Securities News reporter, admitted that it did. "Prior to the company's name is mainly to reflect the relationship between shareholders, now the Galaxy has withdrawn, the company does plan to consider the replacement of the company name, management wants to be in the company name as far as possible to reflect the company's business or technology, as to what the final name, management has not yet agreed. ”