The company is one of the main domestic wire and cable manufacturers, has a stable market share in the power grid, and is one of the main suppliers of UHV and EHV wires and cables. The competition for low-end products in the wire and cable industry is fierce, and the barriers for high-end products to enter are high. The company plans to invest in rail transit, wind power and other special cable fields to enhance the added value of the company's products.
One of the established enterprises in the domestic wire and cable industry. The company mainly produces 35KV-220KV power cables, rail transit, wind power, mining and other special cables, steel core aluminum strands and other wire products. Among them, power cable is the main source of the company's revenue, accounting for 78% of its sales in 2014. At present, the company focuses on EHV power cables, special cables, heat-resistant and super-strength aluminum alloy wires and other special wires.
There is a strong demand for special cables for urban rail transit and wind power generation. The total output value of the wire and cable industry exceeded 900 billion yuan in 2003. Excluding copper prices, the industry's total output value grew at a compound rate of 12% from 2010 to 2009, higher than the national GDP growth rate in the same period. Among them, there is a strong demand for special cables for urban rail transit and wind power generation. It is estimated that during the 12th five-year Plan period, the market demand for urban rail cables will reach 890-125 billion yuan, with an annual average of 178-25 billion yuan; the market demand for wind power cables will be 48000 km/ years, with an output value of about 10 billion yuan.
The market concentration of the industry is low. The market share of the top 15 manufacturers in the country is only 10%. Low-pressure products are fully competitive with low profit margins, while high-pressure and ultra-high-pressure products have higher technical barriers and better profit margins.
The company is a well-known wire and cable enterprise. (1) Power cable: the company is one of the first enterprises in China to pass the national certification of 1000kV UHV steel core aluminum strand, the mainstream supplier of HV and UHV products and one of the main suppliers of 220kV products. (2) Special cable: the company's special cable for rail transit has won a number of subway projects; it has established a long-term and good cooperative relationship with Huaneng Group, and the special cable for wind power generation has won a number of Huaneng wind farm projects; mining cables are being marketed.
The fund-raising project is intended to be invested in special cables to enhance the added value. This time, it is proposed to raise 573.58 million yuan, all of which will be invested in urban rail transit special cable construction projects, wind power generation special cable construction projects, wire and cable high-tech R & D center construction projects and supplementary 250 million yuan liquidity projects. The project has a production period of 4 years, and it is expected that after all the projects reach production, the new sales revenue will be 678.25 million yuan and the total profit will be 92.86 million yuan.
The reasonable value range of the company's stock is 12.24-14.96 yuan. It is estimated that the company's earnings per share from 2015 to 2017 will reach 0.68,0.81 and 0.94 yuan. With reference to the valuation level of the same industry and the growth rate of the company's performance, the company is given a PE of 18-22 times in 2015, with a corresponding value range of 12.24-14.96 yuan.
The main uncertainty of the company. The risk of raw material price fluctuation, the change of investment policy in power industry and the risk of concentration of major raw material suppliers.
