Main points of investment
Leading enterprises in the domestic valve industry: the company is mainly engaged in the research and development, production and sales of automobile engine intake and exhaust valves, is one of the leading enterprises in the domestic valve industry, and is the first listed company in China's engine valve industry. The company's market share has been the third in the industry in the past three years, with a gross profit margin of 35% and 38%.
Balanced development of market segments, flexible adjustment: the company's main sales markets include mainframe supporting market and after-sales maintenance market. At present, the main engine supporting market is mainly the domestic market, and the after-sales maintenance market is mainly foreign market. At the same time, in the foreign mainframe supporting market, the company has successfully developed international brand mainframe supporting customers Caterpillar Inc and Changan Ford Mazda, this market will open up new growth space for the company. The company will adjust its business focus according to the specific conditions of different markets every year, which is very flexible.
Rich in customer resources and high customer stability: the valve is the core component of the engine, and it usually takes eight months to one year for the engine factory to certify the auto parts supplier. Once the valve manufacturer has passed the verification of the host manufacturer, the two will establish a relatively stable and long-term cooperative relationship. The company has established long-term strategic cooperative relations with Cummins, FAW Dachai, FAW Xichai, Weichai Power, Dongfeng Chaochai, Guangxi Yuchai, Dongan Mitsubishi, Haima, Chery, BYD and other companies.
The market space is big, the diesel engine country IV standard stretches the high quality diesel engine valve demand: our country is the automobile consumption big country, the per capita consumption is small, the automobile consumption is in the fast popularization area at the present stage. As for the valve, the market space is broad, which provides a guarantee for the growth of the company. The implementation of the national IV standard for diesel engines will stretch the demand for high-quality diesel engine valves, which is good for the company.
Construction of fund-raising projects to enhance the competitiveness of the company: the proposed investment project of the company's public offering will be mainly used for the annual production of 20 million valves of automobile engines, which will increase the production capacity of gasoline engine valves by 11.5 million per year and diesel engine valves by 8.5 million per year. Raise investment projects to improve the product structure and increase the comprehensive gross profit margin.
Profit forecast and investment advice. From 2013 to 2015, we estimate that the company's main business income will be 296 million, 357 million and 407 million respectively, with a growth rate of-3.07%, 20.56% and 14.06%, and a net profit of 35 million yuan, 48 million yuan and 54 million yuan respectively, with a growth rate of-10.78%, 37.22% and 12.17% respectively. Combined with the valuation of relevant companies in the same industry, we give the company 17-21 times PE in 2014, and suggest a reasonable inquiry range of 8.84-10.92 yuan per share.
Risk hints: the risk of macroeconomic operation; the risk of slowing down the growth rate of the automobile industry; the risk of RMB exchange rate fluctuation; the risk of raw material price fluctuation.
