It is suggested that the inquiry should be 11.73 yuan and the reasonable valuation should be 18.48 yuan.
Randy Group is a leading enterprise in the design and manufacture of air conditioning blades and fans in China, focusing on market segmentation and strong profitability. The company's main products are the core accessories of air conditioning and air supply system, and its market share has been increasing in recent years. We predict that the EPS of Feike in 2016-18 is 0.66 EPS 0.68 RMB 0.75 yuan, and the corresponding issue price (11.73 yuan) PE is 17.8 Universe 17.25 Universe 15.6 times. Compared with the average PE of 28 times of comparable companies in 2016, the reasonable valuation of the company is 18.48 yuan.
Focus on air conditioning blades, fans, good profitability.
The company's main products are domestic and commercial air conditioning blades, fans, plastic blades as the core products, mainly supply the domestic market, domestic sales account for 90% of the income, is an important upstream supplier of the domestic air conditioning industry. Compared with companies in the same industry, the company has faster revenue growth, stronger profitability, gross profit margin and net profit margin are higher than comparable companies.
Plastic blades and metal blades, fan industry demand is stable.
The number of air conditioners per 100 households in rural China is only 34, which is much lower than that of refrigerators and washing machines (78 and 75 respectively). There is still space in the household air conditioning market. Plastic blades are an important part of household air conditioners and the demand is stable. The demand for central air conditioning downstream of the metal fan industry is stable. According to HVAC information, the size of the central air conditioning market in 2013 and 2014 reached 64.4 billion and 70.5 billion respectively, an increase of 9.6% and 9.4% respectively over the same period last year.
The leading advantage is significant, with the breakthrough of production capacity bottleneck, the market share is expected to continue to increase.
With the improvement of the concentration of the downstream air conditioning market, the plastic blade market will also be concentrated to the top suppliers. The company's plastic wind leaf products rank second in market share, second only to Shunwei shares, and the market share is growing faster than Shunwei. In the future, as the fund-raising project is put into production and breaks through the capacity bottleneck, the market share is expected to continue to increase. The market of the metal fan industry is scattered, and a stable competition pattern has not yet been formed. at present, the company has completed the preliminary research and development and testing, and began to supply metal fans in large quantities. The company not only has the accumulation of wind blade and fan technology, but also has a long-term and stable cooperative relationship with Gree, Midea and other customers in the field of household air conditionings. with the expansion of production capacity, metal fan products are expected to accelerate infiltration, and the company's market share in the field of metal fans is accelerating.
Risks: fluctuating demand in the air-conditioning industry and poor development of new markets