Main points of investment:
The company's main business is butyl acetate, trimellitic anhydride, insulating paint production and sales, is butyl acetate, trimellitic anhydride products with scale advantages of the leading enterprises. At present, the production capacity of butyl acetate is 100000 tons / year, the market share is about 30%, and the production capacity of trimellitic anhydride is 10, 000 tons, the market share is close to 20%.
Butyl acetate is an excellent organic solvent, which is widely used in paint and paint industry. From 2001 to 2007, the demand for butyl acetate in China grew at a rate of 7.5%. Butyl acetate has good environmental protection performance, and the demand will grow rapidly in the future. It is estimated that the domestic demand for butyl acetate will exceed 350000 tons in 2010.
Trimellitic anhydride can be used to produce powder coatings, trioctyl trimelliate, high grade F and H insulating paints and insulating materials. It is estimated that by 2010, the global demand for trimellitic anhydride is about 240000 tons, of which the domestic market demand is about 43000 tons. The cost advantage of domestic enterprises is obvious, the product quality can fully meet the requirements of all kinds of foreign households, and part of the production capacity can be digested through exports.
The company is a high-tech enterprise, the reviser of the national standard of butyl acetate and the drafter of the national standard of trimellitic anhydride, has a number of completely independent intellectual property rights of production technology, the State intellectual property Office has officially granted the company 5 patents. The company adopts the process of combining liquid acid catalyst with reactive distillation, which can reduce the energy consumption of butyl acetate production by about 30%.
The fund-raising investment project is the project with an annual output of 20,000 tons of trimellitic anhydride and 20,000 tons of trimellitic acid trioctyl ester, which is planned to be implemented by Baichuan Chemical (Rugao) Co., Ltd., a wholly owned subsidiary of the company. After the completion of the project, the new production capacity will be about 12000 tons of trimellitic anhydride and 20, 000 tons of trimellitic acid trioctyl ester, which will become a new source of profit growth for the company.
It is estimated that the company's earnings per share from 2010 to 2012 are 0.67 yuan, 0.80 yuan and 1.14 yuan. We believe that the reasonable valuation level corresponds to the 2010 price-to-earnings ratio of 30-35 times, and the reasonable valuation range is 20.10-23.45 yuan.