Focus on the subdivision of automatic instruments
Wanxun automatic production and operation of automatic instruments, computer software, automation engineering; engaged in import and export business. The main products are electric actuators, flow meters, signal conditioning instruments, control valves and other instruments. In 2009, the income is 130 million, and the gross profit margin is 50%, of which the gross profit margin of the signal conditioning instrument is 70%. The actual holding person is Chairman Fu Yuchen.
The growth rate of downstream investment is stable, and the growth rate of upstream sales revenue is guaranteed.
The downstream products involve metallurgy, non-ferrous metals, chemical industry, petroleum, electric power, building materials, environmental protection, water treatment, pharmaceutical and other industries, most of which belong to the secondary industry, and the growth rate of fixed assets in the secondary industry has not been less than 20% in the past decade. If downstream fixed asset investment is eventually converted to upstream demand, the instrument industry will be able to maintain a growth rate of 20% in the next few years.
The magnificent transformation from "general distribution" to "independent research and development"
In the search for partners, Wanxun Automation will target small leading companies that subdivide their professional areas. The products of this kind of companies have technology and lack of transnational sales network. Wanxun automatic Control can give full play to its own sales network team advantages, introduce products and achieve a win-win situation. After that, after four stages, we continue to have stronger technological R & D strength, undertake more technical R & D division of labor, and achieve the gorgeous transformation from "total distribution" to "independent R & D".
The funds raised are mainly used to expand the production of the project.
The available funds are about 290 million yuan, of which 94 million are invested in three major industrialization projects: intelligent instruments, electric actuators and Flowmeters. Partial production in 12 years and full production in 13 years. Due to the low market concentration and the technical advantages of the company's products, the demand after reaching production is not a problem.
The reasonable value is between 15.5 and 19 yuan per share.
We estimate that the EPS of Wanxun Automation for 10-12 years is 0.53,0.72 and 0.81 yuan. The CAGR of the company's net profit is expected to reach 23% in the next three years (2010-2012). We believe that the reasonable investment value range of the company is between 15.5 and 19 yuan per share, corresponding to a 10-year PE of 29-36 times.