The company is the leader of precision copper pipe in South China and enjoys the advantage of integrated industrial chain.
The company is located in the production base of air conditioning manufacturers in South China, and currently has a production capacity of 30, 000 tons / year of copper fine tube and 8000 tons / year of copper tube deep processing. The company's main customers are air-conditioning manufacturers in southern China, and the top five customers account for about 64% of the business income. In addition to the copper precision tube business, the company's copper processing equipment manufacturing technology level is leading in China, and recently added steel pipe equipment manufacturing and other businesses. As the downstream manufacturers entered the peak season in the second quarter, the current orders are full and the production line is at full capacity. The company is the only enterprise with a complete industrial chain of "copper processing equipment-precision copper pipe-copper tube deep processing products" at the same time.
Copper processing fees have decreased slightly
Copper processing fees show a downward trend due to fierce competition in the industry and more new production capacity. Company smooth tube processing fee: 4000-5000 yuan per ton. Inner threaded pipe processing fee: 5000-7000 yuan per ton. The inner threaded tube produced by the company accounts for about 70% of the precision copper tube.
The company's financial expenses dragged down its performance in 2011 and improved in 2012
As most of the company's sales are settled through bills, while raw materials are purchased through cash, the increase in interest rates discounted on bills in 2011 led to a sharp increase in financial costs that eroded some of the company's performance. The monetary environment improved in the first quarter of 2012, and the discount rate fell from 13% to 4% in the first quarter of 2012. The company's financial expenses are expected to be reduced.
Future growth mainly depends on the launch of 30,000 tons of Wuhu copper pipe project and the transformation of equipment manufacturing business.
The 30,000-ton precision copper pipe project in Wuhu is expected to reach production in September 2012, mainly for air-conditioning manufacturers in the Yangtze River Delta region. The company's copper strip equipment production is in the leading level in China, and has successfully entered into ferrous metal steel pipe equipment and so on. Electrical and hydraulic equipment will be the growth point of the company's equipment in the future.
Give a "hold" rating
It is estimated that the EPS from 2012 to 2014 is 0.2,0.28 and 0.31 yuan respectively, and the corresponding PE is 38,27.6 and 24.8 times respectively. Give the company a "hold" rating.
Risk hint
The risk of large fluctuations in copper processing fees and the risk that the progress of the fund-raising project is lower than expected.