The company is a high-tech enterprise specializing in the R & D, design, manufacture and installation of large special pressure vessels, pipes and fittings, such as titanium, zirconium, nickel, high-grade stainless steel, etc., and is a leader in China's large-scale non-standard equipment manufacturing industry. The main downstream of the company's products are petroleum, chemical industry, metallurgy, environmental protection, nuclear power and marine engineering and other fields.
As a high-tech enterprise, the company has the non-ferrous metal materials and structure inspection and research laboratory of China Special equipment testing and Research Institute and Nanjing Nonferrous Metal pressure vessel Engineering Research Center. it is the main drafter of titanium and zirconium pressure vessel industry standards and has a number of patented technologies. The company has successfully undertaken a number of specialty materials, large-scale equipment localization projects and scientific research and innovation projects.
Because the company has American ASME "U" steel seal manufacturing qualification and PED certificate exported to the European Union, and takes the lead in passing ISO9001 certification and Norwegian NORSOK certification, the company's products are exported to the United States, Britain, Germany, Canada and other countries and regions, and is a high-end supplier to international well-known companies such as BP, DuPont, Kevanagh, Dow Chemical and Bayer.
The company issued 51 million common shares (A shares) at an issue price of 4.47 yuan. Raise funds for the construction of special pipelines and pipe fittings of Nanjing Baose Co., Ltd. The construction period of the project is expected to be two years. After it is put into production in the third year, 60% of the production capacity will be released. At that time, it will form an annual production capacity of 426 tons of pipeline fittings, including 340.8 tons of pipelines and 85.2 tons of pipe fittings, reaching 100% in the fourth year. The above pipe and pipe fitting products are mainly titanium, nickel, zirconium and other non-ferrous metals and their alloys and high-grade stainless steel products. Fund-raising projects will be an important support for the company's future performance growth.
The company's EPS is expected to be 0.33,0.37 and 0.41 yuan in 2014, 2015 and 2016, respectively. Combined with the prospect of the company's fund-raising projects and the growth potential of the company's performance, we believe that the reasonable share price of the company after listing is between 4.29 and 4.95 yuan, corresponding to a price-to-earnings ratio of 13-15 times for 2014 EPS0.33 yuan.
Risk: the risk of a further slowdown in downstream demand; the risk of significant fluctuations in the prices of major metal raw materials.
