Domestic warp knitting leader, automobile interior fabric business has obvious advantages. As one of the leading enterprises in the domestic warp knitting industry, its automobile interior fabric, especially the car roof fabric, is the main growth point of the company's warp knitting business. for Shanghai Volkswagen, Shanghai GM, Shanghai Automobile, FAW Volkswagen, BYD, Geely, Chery and other domestic mainstream automobile brands suppliers, the cooperation relationship and supply ratio are relatively good, with leading advantages. At the same time, under the condition that the domestic alternative environment is better in the future, the company is opening up the interior market of BMW, Audi, Japanese and Korean cars, and intends to further expand its coverage in the field of transportation. to expand to high-speed rail and large aircraft related applications.
Medical devices have become another main business and a new driving force for the development of the company. In recent years, medical devices have gradually become a new direction of development and the main growth point of the company. Related products include diagnostic black-and-white ultrasound, color ultrasound, new color ultrasound and ultrasonic therapy products. With the continuous improvement of the company's R & D strength, it is expected to seize a larger market share by virtue of the technology and price advantages of its products. At the same time, under the good policy space and development environment of the medical machinery industry, the company's medical device business is experiencing a development period of endogenous structure optimization and vertical expansion, and the company's medical products have good growth potential in the future.
The strategy of medical treatment is clear, which lays the foundation for future development. In 2012, the company defined its own development strategy, and its development will mainly focus on expanding and strengthening medical devices and strengthening fine warp knitted fabrics. Specifically, in 2013, the company invested in ultrasound diagnosis and treatment industry, R & D center construction and sales service center construction. In addition, the company is also making some supporting supplies for order production, such as BMW and Audi, and striving to enter its list of major suppliers as soon as possible, while in the field of medical devices, on the one hand, the company has launched mobile electrocardiograph, and plans to launch more mobile medical products to enter the community medical service industry, on the other hand, it also plans to develop and produce in vitro diagnostic reagents to expand new areas. It is worth noting that with the strengthening of the national policy on small loan companies, the Hongda small loan company acquired by the company is also expected to help strengthen the main business.
Profit forecast: from 2014 to 2016, it is estimated that the net profit of the company belonging to the parent company is 1.16,1.28 and 145 million yuan respectively, the basic earnings per share are 0.66,0.72 and 0.82 yuan respectively, and the price-to-earnings ratio of the previous share price is 30.30,27.78 and 24.39 times respectively. In 2014, the price-to-earnings ratio of the textile and medical device industries belonging to the two major businesses of the company was 31.52 times and 56.04 times respectively, so there is a certain premium space for the company's valuation in the future. We believe that under the premise that the two-axis drive strategy of warp knitting plus medical business is clear, the company has great potential to expand and strengthen its main business, and it is worth looking forward to the continued improvement of business development and performance in the next two years, giving "recommended" investment rating for the first time.
Risk hint: the market competition aggravates the risk, the raw material price fluctuation risk, the medical device sales channel development difficulty risk.
