Main points of investment:

The company is the leader of domestic circuit protection components industry.

The company has five categories of products: tubular fuses, radial fuses, SMD fuses, power fuses and self-replicating fuses. It is not only one of the leaders in China's circuit protection components industry, but also the world-renowned fuse manufacturer with the most complete domestic product line and the largest sales scale.

Raise investment projects to enhance production capacity, optimize product structure, and consolidate industry leading position

The completion and commissioning of the projects raised by the company will help to enhance the company's production capacity, improve the level of automation, optimize the product structure, and create conditions for the company to seize market opportunities and consolidate and improve its leading position in the industry.

Profit forecast

According to the construction progress of the fund-raising project, we estimate that the growth rate of net profit attributed to the parent company from 2014 to 2015 is 11% and 34% respectively, and the corresponding diluted earnings per share are 0.70 yuan and 0.93 yuan respectively.

Pricing conclusion

Considering the valuation of comparable companies in the same industry and the growth of the company, we think that the reasonable valuation price of the company is 21.00 yuan ~ 25.20 yuan, corresponding to the price-to-earnings ratio of 30,36 times 2014 earnings per share.