Main points of the report
The company is the domestic leader in superfiber PU leather. Tongda shares are mainly engaged in the research and development, production and sales of products related to superfiber PU leather. The company is a domestic leader in technology and products, and is a leader in the industry. The company's main products are super-fiber suede leather, super-fiber suede leather, super-fiber base cloth, etc., among them, ultra-fiber glossy leather and ultra-fiber suede lattice are the company's main products, accounting for more than 60% of the revenue.
Market prospect of superfiber PU leather industry according to the forecast of the synthetic Leather Professional Committee of China plastic processing Industry Association, the consumption demand of China's downstream enterprises for ultra-fine fiber leather will reach 236 million square meters in 2015.
The alternative space is also very broad. In 2011, the import volume is nearly 50 million square meters, except for some very high-end products, other markets can be replaced by domestic manufacturers.
Fund-raising projects can help ease the pressure on the company's production capacity. The company's production capacity has encountered bottlenecks, and the company's capacity utilization rate reached 147.49% in 2011. The fund-raising project will help the company to expand its production capacity and effectively relieve the pressure on the company's production capacity. 2 million capacity will be put into operation by the end of 2012 and fully reached production capacity in 2013. After reaching production, the company's production capacity will reach 9 million tons.
In the profit forecast and purchase range, we predict that the EPS of the company in 2012, 2013 and 2014 will be 1.41,1.68and 2.26yuan respectively. Referring to similar companies, we give the company a valuation of 15 to 20 times PE in 2012, and the proposed purchase price is between 21.15 yuan and 28.20 yuan.
Risk factors: the valuation center of gem declined, and the profit of superfiber declined.