The company is the leading enterprise of thin film capacitors and capacitive materials in China, with an annual output of 12000 tons of polypropylene film, the first production capacity in the world, and a domestic market share of more than 40%. The annual production capacity of metallized film is 4000 tons, and the AC capacitor is 1 billion microprocess, ranking first among domestic counterparts; there are 900 million DC capacitors and 10 000 special film capacitors. The company's subsidiary has an annual output of 60 tons of optical crystals, 330 million quartz crystal frequency sheets and 120 million quartz crystal resonators.
After a long time of research and development, the company has developed the locomotive power capacitor, which has begun to ship. The company's locomotive capacitors have been shipped to the two companies through the trial of global electric locomotive multinationals Bombardier and Alstom, with an annual shipment of 3000-4000 units per year. Due to the high requirements of the locomotive capacitance test process and high barriers to entry, the company is the only manufacturer in China that has obtained Bombardier certification; the cooperation between the company and domestic locomotive manufacturers such as CSR is also under way and is expected to enter the test phase soon.
The gross profit margin of the company is obviously lower than that of its peers, mainly because the company is still a state-owned enterprise management system, and the expense rate during the sales period is relatively high; the company's products are on the low end, at the same time, the higher annual depreciation and amortization of fixed assets as well as the annual impairment loss of assets brought about by the company's large previous investment also push up the cost and expenses of the company's products. The pricing mechanism of some subsidiaries of the company is obviously unreasonable and leads to large losses, so there is a need for clean-up and integration in the future.
It is estimated that from 2010 to 2012, the company's total sales income is 653.1749 million yuan, 803.4052 million yuan and 953.6419 million yuan respectively, and the net profit is 18.527 million yuan, 452.195 million yuan and 58,3182 yuan respectively, corresponding to 0.04 yuan and 0.10 yuan and 0.13 yuan per share, respectively. The corresponding price-to-earnings ratio is 182.25 times, 71.47 times and 56.08 times, respectively, and the valuation is on the high side. However, considering that the shareholders of the company are likely to clean up and integrate the subsidiaries and businesses of the company, there are trading opportunities in the secondary market and are given a neutral rating.