Investment advice:
The main products of Tongfeng Electronics are capacitor film and thin film capacitor. in recent years, the company has actively developed new high-end power electronic capacitors, and its products have entered the global procurement supply chain of companies such as Bombardier, Alstom, Toshiba of Japan and Carver of Spain. it will become an important growth point of the company's performance in the future. After the equity issue is completely resolved, the company's performance is expected to usher in an upward inflection point. We expect the company's operating income from 2012 to 2013 to be 810 million, 1.152 billion, net profit 0.51, 168 million, EPS 0.13,0.42 yuan, corresponding to the current share price PE 40.12x, 12.27x, giving the company a "highly recommended" investment rating.
Main points:
The problem of ownership structure has been thoroughly solved. The company is mainly engaged in the production and sales of thin film capacitors and related materials. In 2007, the company carried out asset restructuring, and Tongling City SASAC introduced Zhejiang Tieniu Group as a strategic investor in Tongfeng Electronics. In November 2011, Tieniu Group took over the remaining equity. After the completion of the transfer, Tieniu Group holds 100% of Tongfeng Group. The company has broken the institutional bottleneck that has restricted the company's development for six years, and the ownership structure has been sorted out smoothly, which is more conducive to the company's operation, and the company is expected to usher in a performance inflection point.
High-end power electronic capacitors lead the rapid growth of future performance. The company makes great efforts to develop new high-end power electronic capacitors and other new products. After 8 years of successful research and development of rail transit capacitors, the company has high technical barriers, strong international competitiveness, and a gross profit margin of more than 50%. The products have entered the global procurement supply chain of Bombardier, Alstom, Toshiba of Japan, Carver of Spain and other companies. At the same time, the company has developed a series of high-end capacitor products with a wide range of applications, including large electric locomotives, high-speed rail cars, urban rail subway, smart grid, new energy vehicles, solar power generation, wind power generation, military and other fields. The company accelerated capacity expansion in 2012 and has the ability to triple production capacity, most of which will be put into production by the end of this year and will be released next year. With the full start of the national rail transit construction next year and the increased investment in the transformation of the national power grid, high-end power electronic capacitor products will become a major growth point of the company's performance.
Film capacitor industry leader. The company is the only one-stop manufacturer of "electrical film-metallized film-thin film capacitor" in China, and its products are widely used in communications, computers, aerospace, automatic control, medical equipment, military equipment and other fields. The company's additional project new energy film and new film for smart grid have high technical barriers and strong profitability, which is expected to form a sound support for future performance. Risk hint: the production capacity is up to production and the customer development is lower than expected.