Company profile.

The company focuses on the R & D, production and sales of large infusion products, and is one of the earliest enterprises in China to produce large infusion in plastic bottles and non-PVC soft bags with double valves and double valves. It has an annual production capacity of 14000 million bags of non-PVC soft bags and 90 million bottles of plastic bottles.

The production capacity of non-PVC soft bag infusion is in the forefront of the country. At the same time, the company also has the domestic leading level of injection puncture equipment business, is carrying out cooperation with the hospital to establish a hemodialysis center, by the hospital operation, the company exclusively provides hemodialysis consumables business.

Profit forecast.

We expect the net profit attributable to the parent company to increase by 22.44%, 6.63% and 2.94% annually from 2015 to 2017, with corresponding diluted earnings per share of 0.44 yuan, 0.47 yuan and 0.48 yuan.

Valuation of the company.

The average dynamic price-to-earnings ratio of 14-year and 15-year listed companies in the same industry is 46.87 times and 20.68 times, and the industry median price-to-earnings ratio of chemical agents listed companies in 14 years and 15 years is 44.20 times and 31.91 times respectively. Taking into account the company's business structure, market competition and comparable companies in the same industry, and based on the published results in 2015 and the average forecast results in 2014 and 2016, we think that it is reasonable to give the company a valuation level of 20 times earnings per share in 15 years. The static price-to-earnings ratio (diluted after issuance) is 22.25-26.70 times relative to 2014.

Pricing conclusion.

The company plans to issue a share price of 7.36 yuan, corresponding to a 14-and 15-year PE of 20.43,16.69.