Main points of investment
Domestic electrical contact functional composite faucet
The company is one of the largest manufacturers of electrical contact functional composites, components and components in China, and is also one of the main participants in the drafting and revision of national and industry standards in the field of electrical contact functional composites. As a leading overall solution provider in the field of domestic electrical contact functional composites The company has a complete product system from the preparation of various electrical contact materials to the processing of integrated electrical contact components, which can meet the performance requirements of all low-voltage electrical appliances. The company's main customers are Zhengtai Electric, Delixi Electric, Emerson, Sensata, Cooper, General Electric Co and other international and domestic well-known electrical appliance manufacturers.
Focus on localization and improvement of industry concentration
Electrical contact functional composites are mainly supplied to the low-voltage electrical appliance industry, which is the basis for the development of the low-voltage electrical appliance industry. Low-voltage electrical appliances can be divided into three major application fields: industrial appliances, household appliances and automotive appliances. Due to the wide range of use of electrical contact functional composites, we expect the industry as a whole to follow steady macroeconomic growth.
The customers of domestic electrical contact material manufacturing enterprises are mainly domestic electrical appliance manufacturers, and the sales income to foreign high-end customers accounts for a very low proportion of their main income. The customers of foreign electrical contact material manufacturing enterprises are mainly ABB, Schneider, General Electric Co and other large foreign electrical enterprises. Compared with foreign manufacturers of electrical contact materials, domestic enterprises have a large gap in brand, scale and so on. But at the same time, we can see that with the promotion of the localization of low-voltage electrical equipment, electrical contact materials enterprises are growing along with a number of outstanding domestic downstream enterprises such as Zhengtai Electric.
According to the statistics of the Electrical Alloy Branch, there are more than 60 domestic enterprises engaged in the production of electrical contact materials (only the members of the Electrical Alloy Branch). Among them, about 10 enterprises have a certain scale and technical strength, and their product varieties, technical personnel and production equipment have greater advantages over other enterprises. The market share of these 10 enterprises can reach about 50%, and the market share of the company is about 4%. The domestic competition pattern is still relatively scattered, and the further concentration of the industry in the future is an inevitable trend.
Raise investment projects to solve the bottleneck of production capacity
The company will raise funds for capacity expansion. The production capacity of layered composite products will increase by 79% to 680 tons, that of particle and fiber reinforced products by 230% to 150 tons, and that of integrated components by 63% to 650 tons. Capacity expansion will match the growth of existing core customers and lay the foundation for the expansion of new customers.
Profit forecast and valuation
It is estimated that the diluted EPS of the company after listing in 2011-2013 will be 1.16,1.48,1.79 yuan respectively, and the compound growth rate of EPS in the next three years will be 21.44%. The company will be valued at 20-23 times PE in 2011, with a corresponding share price range of 23.28-26.77 yuan.
Risk tips: concentration of downstream customers; fluctuation of silver price
