Domestic plastic air conditioner wind leaf faucet. The company specializes in producing air conditioning cross-flow, axial flow, centrifugal blades and other products, with a market share of more than 25%. In 2011, the company sold 71.8 million pieces of air-conditioning blades of all kinds, with an income of 1.4 billion yuan, a net profit of 100 million yuan, a gross profit of 21.1% and an income CAGR of 47% in 2009-11.
Benefit from the increase in domestic air conditioning capacity and the transfer of global air conditioning capacity. In 2010, the number of air conditioners in rural areas was only 16 units per 100 households, while that in cities and towns was 112 units per 100 households. Compared with the level of developed countries, there is still much room for improvement. It is expected that the domestic air conditioning market will continue to grow rapidly in the next few years. At present, China accounts for 70% of the global air-conditioning production capacity, and has become a global air-conditioning production base. Overseas manufacturers have chosen to contract manufacturing or centrally purchase all kinds of air-conditioning parts in China. Therefore, as the largest professional manufacturer of air conditioning blades in China, the company will benefit from the broad market space of the industry.
The layout of the industrial chain is complete, and the advantage of customer resources is obvious. The company is one of the few professional production enterprises with complete "plastic modification-mold design and manufacturing-plastic air conditioning blade design and manufacturing" industry chain, with significant scale advantages, and the company is headquartered in Shunde, Guangdong Province. The new bases in Wuhu and Wuhan are facing the new domestic air conditioning production base, and the location effect is prominent. In addition, the company has obtained 80% of the domestic orders of Samsung, Panasonic, Daijin and other overseas enterprises, and more than 45% of Gree and Midea's duopoly orders, showing a certain monopoly power in the market.
Raise investment projects to expand production capacity, digest existing orders and expand new customers. At present, the company has a total production capacity of 42 million air conditioning blades in Shunde and Kunshan production base, with an output of 63 million pieces in 11 years, with a capacity utilization rate of 150% and a serious shortage of capacity. The fund-raising project plans to add 600 and 8 million new production bases in Shunde and Kunshan respectively, with a production capacity of 15 million new Wuhu bases and a capacity expansion of 69 per cent. We expect that after the completion of this project, we will be able to effectively digest existing orders and gradually expand large-scale air-conditioning manufacturers such as Haier and Zhigao, which have suspended cooperation due to lack of capacity.
Profit forecast and inquiry suggestion: the EPS of the company after dilution in 12-14 years is expected to be RMB 0.88,1.18,1.48 respectively (CAGR is 31.6%). Considering the inquiry valuation of comparable companies and recent IPO companies, we recommend that the inquiry range is RMB 16.7-18.4, corresponding to a 12-year dynamic P / E ratio of 19-21 times.
Risk factors: the air conditioning industry continues to be in the doldrums, the whole machine factory is self-supplied, and the price of raw materials fluctuates greatly.