Inquiry conclusion:
The current dynamic price-to-earnings ratio of listed companies in automation equipment is between 35-45 times. Considering the company's leading position in the industry and good growth, we think that the 2010 price-to-earnings ratio of 40-45 times is more appropriate. Based on the company's 2010 earnings per share of 0.42 yuan, the reasonable share price of the company should be 16.62-18.70 yuan. It is suggested that investors should apply for the purchase at a reasonable price.
The main basis is:
Since its establishment in 1994, the company has been focused on the industrial automation instrument industry, mainly engaged in industrial automation instrument research and development, production and sales business. The company's main products include electric actuators, flow meters, signal conditioning instruments, control valves and other instruments.
Through the international cooperation mode to enhance the company's R & D technology level and enhance the company's overall market reputation and independent product brand image; the company through the combination of independent mode and international cooperation mode, rapidly expand the product line, has set up electric actuators, flow meters, signal conditioning instruments, control valves and other instruments and other product lines, forming a diversified product development pattern.
The industrial automation instrument industry where the company is located has a low concentration and a large number of enterprises. most of the enterprises are small and medium-sized enterprises with sales income ranging from 10 million yuan to tens of millions of yuan. the company is one of the few enterprises with an operating income of more than 100 million yuan in the industry. it is an enterprise with strong profitability and market influence in the same industry.
The company's product quality has reached the international advanced level and has a high brand influence in the market. Thanks to the long working time in the industry and the company's deep understanding of customer demand and the development trend of the industry, the company can continuously develop new products that meet the needs of the market and successfully push them to the market. this has become one of the company's core competitive advantages. Over the past 15 years, the company has successfully introduced a number of new products to the market.
Risk Tips:
The downstream industry of the company is greatly affected by the national macroeconomic situation, and if there are major fluctuations in the national macro-economy in the future, it may have a negative impact on the development of the company.