Professional wire and cable manufacturers, medium and low voltage products are the main source of income. The company's main business is the design, R & D, production and sales of medium and low voltage power cables, special cables, electrical spare wires and cables. At present, the company's customers mainly include Jiangsu Electric Power Company, Tianjin Electric Power Company, Wuxi Xineng Industry and so on. At present, medium and low voltage power cable is the main source of income of the company. In 2011, the business income was 1.239 billion yuan, accounting for 60% of the total income.
Regional cable leader, EHV cable may be a bright spot for future business. At present, the company's product sales are mainly concentrated in East China and North China. In 2011, Jiangsu Electric Power Company's market share was about 10%, ranking in the top three. 110kV and 220kV products have passed the relevant type tests, and 110kV products have begun to supply; at the same time, the company is one of 11 domestic suppliers qualified to provide safety grade cable equipment to nuclear power plants, and has won orders from Zhejiang Fangjiashan Nuclear Power Station, Jiangsu Tianwan Nuclear Power Station, Fujian Fuqing Nuclear Power Station and other five nuclear power stations.
The market space of ultra-high voltage and fireproof cable is opened to boost the demand of related products of the company. We believe that the demand of the power cable industry will maintain steady growth in the future, with an annual growth rate of about 10%. In terms of high-voltage and ultra-high voltage cross-linked cables, according to the average annual demand of 23000km, the average price is 760000 yuan / km, and the average annual market capacity in the future is nearly 20 billion yuan. As one of the few ultra-high voltage intelligent environment-friendly cable manufacturers in China, this new business is expected to become a bright spot in the future. In addition, with the promotion of fireproof cables in high-rise buildings and entertainment venues in China, the domestic demand for fireproof cables is expected to grow at an average annual rate of about 15%. The market demand for mineral insulated cables reached about 7.7 billion yuan in 2015, which is expected to promote the market demand for special insulated cables.
The fund-raising project focuses on the production capacity construction of EHV and insulated cables. The company's investment projects include EHV environmental protection intelligent cross-linked cable technical transformation project, mineral insulated special cable project, with a total investment of 354 million yuan. After the project reached full production, the sales income increased by 937 million yuan, and the net profit increased by 74.8879 million yuan. Through the previous investment project, the company upgraded its product structure, got involved in the UHV cable business, and promoted the company's performance growth with the help of the qualification advantages of related products. The latter investment project will enable the company to benefit from the growth of domestic fireproof cable demand and expand the volume of the business with higher gross profit margin.
The recommended inquiry range for the company's stock is 13.35-17.80 yuan. We predict that the company's earnings per share from 2012 to 2014 will reach 0.89 yuan, 0.97 yuan and 1.01 yuan. With reference to the valuation level of the same industry, the company is given 15-20 times PE in 2012, and the corresponding value range is RMB13.35-17.80. considering the 15% discount rate, the corresponding inquiry range is RMB11.35-15.13.
The main uncertainty of the company. Big customers are highly dependent on risk and market competition risk.