The rapid growth of domestic air conditioning demand has led to the rapid development of the air conditioning blade industry. In recent years, China's air-conditioning market has developed rapidly, from 18.2667 million units in 2000 to 139.125 million units in 2011, with an average annual compound growth rate of 18.43%. It has become the largest producer and second largest consumer market of refrigeration and air-conditioning equipment in the world. The policies of "home appliances going to the countryside" and "trade-in" stimulate air-conditioning consumption; energy-saving, environmentally friendly, green and healthy consumer demand promotes the upgrading of air-conditioning products. The proportion of co-processing of plastic wind blades by air conditioning manufacturers is increasing. Benefiting from the rapid development of the air conditioning manufacturing industry and the parts outsourcing processing of air conditioning manufacturers, the plastic air conditioning blade industry has huge development space, and the plastic air conditioning blade manufacturing industry has a high degree of industry concentration and barriers to entry.

The company has a strong competitive advantage. The company is currently the largest professional manufacturer of plastic air conditioning blades with the highest market share in China. In 2011, the company sold 71.8008 million pieces of plastic air conditioning blades, with a national market share of 25.80%. The "SUNWILL" series of plastic air conditioning blades produced and sold by the company have high popularity and reputation in the industry, and have become famous brand products in the industry, including Gree, Midea, Haier, Zhigao, TCL, Galanz and other domestic air conditioning giants. The company and its subsidiaries have 54 authorized patents; it is one of the few professional plastic air conditioning blades manufacturers in the industry with comprehensive supporting capacity.

The fund-raising project will help the company break through the capacity limit. By raising funds to expand production of three production lines and one R & D center, in the next two to three years, the company will increase the production capacity of 29 million pieces to 71 million pieces on the basis of the existing 42 million pieces of production capacity through the implementation of listing and fund-raising projects. after expansion, the company can significantly improve the company's market share and market bargaining power.

Profit forecast and investment advice. We predict that the diluted earnings per share of the company from 2012 to 2014 will be 0.86yuan, 1.12yuan and 1.22yuan respectively. The application price of Shunwei shares is 15.80 yuan, with a premium of 0-10% on the first day of listing, and the closing price is expected to be 15.80-17.38 yuan on the first day.