One of the leading companies in the field of large diameter PHC pipe piles. Concrete pipe piles are an important building material for building foundations, and PHC pipe piles are also an important type of pipe piles. Compared with small-diameter PHC pipe piles, large-diameter PHC pipe piles have higher entry barriers and higher profit margins, which is the company's main development direction in the future. At present, the company's share of the large-diameter PHC pipe pile market exceeds 20%. The supply of products is in short supply, and the development prospects are promising.
Hydraulic construction such as ports and terminals provides a broad market for the company. The company's large-diameter PHC pipe piles are mainly used in the basic construction of ports, wharves, shipyards, large steel mills, and power plants. Investment in water transport has continued to grow in recent years, and six of the seven regional plans passed by the country last year included the construction of port terminals. It is expected that the company's main markets will continue to grow in the future. Furthermore, the development of onshore markets such as high-speed rail and overseas markets will be additional growth points for the company's demand.
The company has a core competitive advantage in the field of large diameter PHC pipe piles. We believe that the company has two main competitive advantages in the field of large-diameter PHC pipe piles: 1) The company has mastered the formulation technology and process for preparing high-strength concrete, and the large-diameter PHC pipe piles produced have the advantages of high strength and reliable quality. 2) Quality and brand advantage. Pipe pile construction requires strict quality requirements for pipe piles, and the products currently produced by the company have not had too many quality problems. This has created a good brand image for the company and has accumulated a large number of high-quality customers.
Fund-raising projects will ease production capacity bottlenecks. The company plans to issue no more than 35 million shares this time. The funds raised will be used for the renovation and expansion of large-diameter PHC pipe piles, the construction of supporting terminals, the construction of pile carriers, and the construction of a new R&D center.
After the fund-raising project is completed, 800,000 meters of large-diameter PHC pipe pile production capacity will be added, doubling the current production capacity bottleneck. According to the progress of the company's plans, 2011 will be a year where additional production capacity is fully utilized.
Reasonable value range. Judging from the average valuation level of companies in the same industry and related industries, the company's issue price already basically reflects a reasonable valuation level compared to companies in the sector. We think the company's reasonable value is around 20 yuan.
Judging from the valuation level of SME companies listed in the past two months, the company's valuation level for 2008-2010 calculated based on the IPO issue price is not excessive compared to the SME average. The three-year PE was 62%, 66%, and 57% of the average, respectively. Logically, after listing, the company's valuation should reach the average of listed companies in the past two months, and there may still be an increase of 30-60% after listing. It is recommended to actively subscribe online and carefully subscribe during the three-month offline lockdown period.
Major uncertainties. 1) Investment in water transport such as ports and terminals fell short of expectations. 2) The risk of loss of core technology.