Basic conclusions, value Evaluation and Investment suggestions
The company is mainly engaged in the production and sales of prestressed high strength concrete (PHC) pipe piles. It is currently the second largest production base in the field of large diameter PHC pipe piles in China. At the same time, it is also one of the manufacturers of special concrete components with the most complete variety in the industry, which can meet the construction needs of various large-scale water and land projects and provide a package of solutions. Based on the high entry barriers and strong market demand of domestic large diameter PHC pipe piles, there is still a gap between supply and demand of about 4 million meters in the industry. Among the about 350 PHC pipe pile production enterprises, only 7 have the production capacity of large diameter pipe piles, and the contradiction of insufficient supply of existing capacity is becoming more and more prominent. With the sustainable development of the port logistics industry in the future, the construction of Shanghai Shipping Center will start. Under the background of the booming construction of high-speed rail and coastal wind power, the industry will face more room for development.
With the continuous launch of production capacity and further expansion of the market, the company will gradually develop into the largest production base of large diameter PHC pipe piles in China, and its market influence will continue to be enhanced; products have successfully entered the Southeast Asian market by virtue of their advantages in quality and price, and their share in the international market in the future still has huge room for improvement, from this point of view, the company is the domestic leader in the field of large diameter PHC pipe piles.
We forecast that from 2009 to 2011, the net profit of the company belonging to the parent company is 0.52,0.80 and 104 million yuan respectively, an increase of 9.53%, 53.65% and 30.74% over the same period last year. According to the issuance of 35 million share capital, that is, based on the total share capital of 135 million shares, the fully diluted EPS is 0.519 yuan, 0.591 yuan and 0.773 yuan respectively.
With reference to the current average valuation level of relevant listed companies in the building materials industry, and in view of the good growth of the company in the next three years, we give the company 25 times PE in 2010 and 20 times PE in 2011, with a reasonable valuation range of 14.78 to 15.46 yuan per share.