Investment suggestion: Tongda Power is the professional manufacturing leader of domestic small and medium-sized motor stator and rotor stamping and iron core. the products are widely used and the customer base is stable and high quality. Stator and rotor punching plates and iron cores are the core components of the motor, and the cost accounts for about 30% of the motor cost. The demand has long benefited from the increase in the proportion of outsourced motors downstream and the rapid growth of supporting motors in the new energy industry of efficient motors. The company is one of the first enterprises in the industry to produce high-efficiency motor stator and rotor core, wind turbine stator and rotor stamping and iron core, about 30% of the products are used in high-efficiency motor, and has been able to mass produce more advanced direct drive fan stator and rotor products in the world. The fundraising project will increase the silicon steel stamping capacity by 50, 000 tons per year on the basis of the current 68000 tons / year, and help the company stabilize its market position in East China, South China and South Central China, and open up the market of motor products in North and Northeast China.
We estimate that the main income of the company from 2010 to 2012 is 845 million yuan, 1.074 billion yuan and 1.324 billion yuan respectively, and the net profit attributable to the owner of the parent company is 57 million yuan, 88 million yuan and 112 million yuan respectively.
We select the listed companies which are mainly engaged in electrical machinery and precision stamping parts as a reference, and the average PE in 2011 is 32.89 times. Recently, the average PE of IPO prices of small and medium-sized board listed companies in 2011 was 32.42 times, the average closing price increase on the first day was 10.01%, and the average latest closing price increase was 2.69%. Considering the valuation of comparable listed companies, the growth of the company and the recent issuance of new shares on the small and medium-sized board, we think that it is more reasonable to select the 2011 PE range of 27-30 times as the reference of inquiry valuation. The inquiry range is 18.61-20.68 yuan, corresponding to the 2010 PE of 41.55-46.16 times.
Risk hints: (1) domestic policy support for high-efficiency and energy-saving motors may not meet expectations; (2) industry competition may intensify.
