The company is one of the main enterprises in the domestic wire and cable industry: Hangzhou Cable Factory, the predecessor of the company, is one of the earlier cable enterprises in China, and it is the key backbone enterprise of the cable industry of the former Ministry of Machinery and Electrical Engineering. It was founded in 1958 and is a national high-tech enterprise. It is a professional wire and cable manufacturing enterprise integrating scientific research, design, manufacturing and sales. At present, the company is the core enterprise of Fuchunjiang Communication Group Co., Ltd. The company is the director unit of China Electrical Appliance Industry Association Wire and Cable Branch and the chairman of Zhejiang Wire and Cable Industry Association. The company's product trademark "Yongtong" is a well-known trademark in China. The company's main products include 110kV, 220kV high voltage and ultra high voltage cross-linked power cables, 66kV, 35kV and below medium and low voltage cross-linked power cables, rail transit cables, wind power cables, mining cables and other special cables, as well as steel core aluminum strands, aluminum alloy wires, aluminum-clad steel wires and other wire products.
The company's business scale is increasing year by year: with the rapid development of China's economy and the expansion of domestic electric power investment scale, the company has increased its development speed in recent years, and its business scale has increased year by year by increasing its efforts to expand the market, the promotion of market scale and the development of new products.
The company focuses on: 1) broad product market demand; 2) outstanding technical strength; 3) product structure advantage; 4) quality advantage; 5) brand advantage.
Fund-raising project: the company intends to publicly issue no more than 53.35 million A shares, all of which are new shares. After deducting the issuance expenses, all the raised funds 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.
Profit forecast and valuation. With the sustained and rapid development of the domestic power industry and the opportunities brought by the continuous expansion of the network transformation scale, we estimate that the company's operating income from 2015 to 2017 will be 29.18,32.65 and 3.75 billion yuan respectively, realizing the net profit attributable to the parent company of 1.41,1.70 and 203 million yuan, and EPS of 0.66,0.80 and 0.95 yuan respectively (taking into account the share capital of 213.35 million shares after the issuance of IPO). Combined with the average valuation of other listed companies in the electrical equipment industry, we think that the reasonable valuation range is 25-30 times PE in 15 years, and the corresponding price range is 16.5-19.8 yuan.
Risk hint: the risk of sharp fluctuation of raw material price and the risk of change of investment policy in power industry.
