Main points of investment:
The rapid development of nuclear power broadens the high-end pressure vessel market
According to the revised draft of the national nuclear power plan, by 2020, China's nuclear power operation capacity will reach 75 million kilowatts, and 75 million kilowatt nuclear power plants will be built.
According to this calculation, the total investment in nuclear power construction is expected to reach 940 billion yuan, of which the equipment investment is about 423 billion yuan. If the localization rate of nuclear island, conventional island and auxiliary equipment is 70%, 80% and 90% respectively, then domestic equipment enterprises will share a market of about 322.4 billion yuan, and there will be a market of about 80 billion yuan for secondary and tertiary equipment and auxiliary equipment on nuclear islands. the nuclear power equipment industry has great potential for development.
Small and medium-sized pressure vessel manufacturers in a corner
The main sales areas of the company are Sichuan, Chongqing, Qinghai, Yunnan and other western regions.
In 2008, the company ranked sixth in the sales income of pressure vessel equipment among the professional manufacturing enterprises in the western region. From a national point of view, from 2006 to 2008, the company's pressure vessel equipment in the domestic market share is 0.35%, 0.38%, 0.43%, the scale and strength are not outstanding.
Performance will continue to grow
At present, the amount of orders held by the company has reached 156 million yuan, and the delivery date of some products has been scheduled to 2011. According to preliminary estimates, the growth rate of net profit belonging to the parent company in 2010-2013 is expected to be 30.33%, 9.61%, 39.00% and 20.57%, respectively, and the corresponding diluted earnings per share are 0.53 yuan, 0.58 yuan, 0.81 yuan and 0.97 yuan respectively.
Pricing conclusion
Considering the valuation of comparable companies and recently listed gem companies, we think that it is more reasonable to give the company a dynamic price-to-earnings ratio of 32.5-39 times in 2010, with a reasonable valuation range of 17.21-20.65 yuan.