Youfa Group raised 2 billion yuan of convertible bonds in this period, which will be used to supplement welded steel pipes, hot-dip galvanized plate buckle scaffolding, scaffolding processing projects and liquidity of Tangshan Youfa New Construction equipment Co., Ltd. the listing date is April 26.
Domestic welded steel pipe faucet. The company is mainly engaged in the production of welded steel pipes, including galvanized pipe, welded pipe, square moment welded pipe and square moment galvanized pipe, etc. At the same time, the company is also developing high value-added products such as plate buckle scaffolding and climbing scaffolding, and the upstream materials are strip steel and zinc ingots. Downstream terminals are faced with real estate & infrastructure and other industries with strong periodicity. By the end of 21, the company had a production capacity of 18.5 million tons / output of 1820 million tons / sales of 12.06 million tons, with a domestic market share of more than 30 percent, ranking first in the country for 16 consecutive years. The company's products are processed with strip steel as the base material and mainly earn processing fees, while downstream customers are mainly dealers, testing the company's management and turnover ability. the gross profit per ton fluctuates between 100 and 200 yuan, with a profit peak of 180 yuan per ton in 20 years. In 21 years, due to the rapid rise in steel prices and slow transmission to the downstream, the gross profit per ton has dropped to 130 yuan, and the company's net profit per ton has also dropped sharply to 57 yuan. Led to a sharp drop in net profit.
Actively expand production capacity and develop high value-added products. The demand for welded steel pipe downstream is cyclical, and it is expected that the demand will usher in a boom driven by steady growth during the year. At the industry level, driven by supply-side reform, capacity removal and strict environmental protection in the past few years, the degree of concentration has increased rapidly, and it is expected that the degree of concentration will further increase in the future.
As the leader of domestic welded steel pipe, the company's sales have increased steadily year by year in the past few years, ranking first in the industry. At present, the company is still actively carrying out capacity expansion projects. The first phase of the Jiangsu Youfa project was put into production in August 21, and the second phase of the project has also started construction, with an annual production capacity of more than 3 million tons of new steel pipes. At the same time, through this investment project, the company will increase the production capacity of 5.4 million tons of welded steel pipes, and at the same time realize the large-scale production of hot-dip galvanized plate buckle scaffolding and climbing scaffolding with higher added value. it is conducive to the continuous optimization of the company's product structure and the improvement of profitability. According to the unanimous forecast of Wind, the net return profit of 2022 Company2023 will be 1.136 billion / 1.205 billion respectively, and the corresponding PE will be 9.4X/8.86X.
The valuation is in the middle level since the listing, with high stock price elasticity and low institutional attention. From the valuation point of view, the company's latest closing price corresponds to PE (TTM) of 17X, the valuation is in the middle level since listing, and the comparable company Jinzhou Pipeline / Yongjin share PE (TTM) is respectively 9.7X/18X, which is at a reasonable level compared with the comparable company. The company's current A-share market capitalization is 10.7 billion, the stock price elasticity is general, reported three positions in the quarter of 22, the institutional attention is low.
The protection of parity is general and the protection of debt bottom is better. The interest rate terms of the convertible bonds issued by you are average, and the additional terms are regular. According to the latest closing price of the corresponding company, the parity of convertible bonds is 72.63 yuan, which is generally protected; under the assumption of this article, the value of pure bonds is 91.72 yuan and YTM is 2.71%, and the bottom of the debt is well protected.
The listing price is expected to be between 105 and 108 yuan. Youfa convertible bond rating AA, the latest parity 72.63 yuan, the convertible bond market can refer to the underlying Yongjin convertible bond (the latest closing price 117,40.53% premium rate), special convertible bond (the latest closing price 11010, premium rate 54.45%). It is expected that the conversion premium rate of Youfa convertible bond on the first day of listing is 45-50%, and the listing price is between 105108.
Risk hint: raw material prices rise rapidly; downstream demand falls short of expectations