Baose is a professional supplier of non-standard special materials and equipment. The company is mainly engaged in the R & D, design, manufacture and installation of non-standard equipment for special materials such as titanium, nickel, zirconium, tantalum, copper and their alloys, advanced stainless steel and metal composite materials, as well as the manufacture and installation of non-ferrous metal welding pressure pipes and fittings.
The company has an outstanding competitive advantage. The company has the leading technical advantages and first-mover advantages of non-standard special pipe fittings in China. With R & D as the core, it has independently developed 13 domestic leading related technologies. At the same time, the successful experience over the years has also accumulated good quality and brand advantages, driving the development of the company's equipment manufacturing. In addition, the company firmly grasps the location advantages and industry policy guidance to develop the company's core competitiveness.
The company's product market position. Non-standard special material equipment industry is a new industry in China, there are few domestic enterprises to achieve large-scale production, and enterprises with large-scale special material equipment processing and manufacturing capabilities are even more scarce. At present, the company occupies a leading position in the market of large-scale special materials equipment manufacturers, and has outstanding first-mover advantages in the manufacturing field of PTA core equipment and IGCC and co-production devices in China.
The company's performance fluctuated. Looking at the company's financial data in the past three years, there are fluctuations in revenue, resulting in fluctuations in the company's operating profit and net profit. The growth rate of the three fees is relatively fast in 2012. In the first half of 2014, the company's performance fluctuated again, mainly due to fluctuations in raw material prices.
Fund-raising projects to improve the overall competitiveness. The implementation of the IPO project will improve the company's product structure, expand new areas, and improve the company's competitiveness. After the "non-standard special pipe fittings project" reaches production, the company's pipeline fittings production capacity will reach 710 tons / year, and will become a leading professional pipeline fittings manufacturer in China.
The reasonable value range is 9.3-12.4 yuan. Combined with the progress of the company's production capacity and the judgment of the future economy, we predict that the company's EPS from 2014 to 2016 will be 0.31,0.34 and 0.38 respectively. With reference to the comparable company, we give the company a valuation level of 30-40 times PE in 2014, and the corresponding reasonable value range is 9.3-12.4 yuan.
The main uncertain factors. The risk of price fluctuation of major raw materials; the risk of seasonal fluctuation of business performance; the uncertainty of the progress of fund-raising projects; the risk of accounts receivable; the risk of loss of core technical personnel.
