Main points of investment:
The company's main business is stable, and the income of chainsaw products contributes more than 50%. The company's products are divided into two categories: garden machinery and portable digital generator, garden machinery products are divided into chainsaw, irrigation cutter, hedge trimmer, lawnmower and so on.
In 2014, the company achieved operating income of 510 million yuan, an increase of 21.02% over the same period last year. The revenue of garden machinery accounts for 83.46%, of which the first category of chainsaw products accounts for 55.04%, accounting for 9.20% in the same industry. The company achieved a net profit of 57.0339 million yuan, an increase of 24.11% over the same period last year, with a gross profit margin of 24.39%.
The company's products are mainly sold by exports, with Europe as the largest market. The company's products are sold through both foreign and domestic channels, and the export mainly adopts the ODM mode; the domestic market mainly adopts the OBM mode. The company is mainly engaged in middle-and high-end garden machinery, and the main consumer areas are concentrated in Europe and the United States and other developed countries. In 2014, the company's overseas sales accounted for 93.59%, and Europe accounted for 72.64% of overseas sales, which is the company's main market. The main countries are Italy, Germany, France and Russia.
The global market for garden machinery products will grow steadily. Due to the development of economy and the acceleration of urbanization, the demand for greening and gardens is also growing gradually. as one of the horticultural supplies, the market of garden machinery products will grow steadily for a long time. According to GIA, the global market for garden machinery products increased from US $14.97 billion in 2007 to US $20.621 billion in 2015. Among them, the market size of garden machinery in China in 2015 is 4.807 billion yuan, and the market capacity of chainsaw products is 961 million.
Fundraising project. The fund-raising investment projects include: (1) invest 192.5994 million yuan in chainsaw, irrigation cutting machine and hedge trimming machine to expand production plant and ancillary facilities project; (2) invest 25.0345 million yuan in garden machinery R & D center and ancillary facilities project. The amount of funds to be raised is 217.6339 million yuan. After the project reaches production, it can increase the annual output of 400000 chainsaws, 400000 irrigation cutters and 51000 hedge trimmers.
Profit forecast and valuation. According to the announcement of the company's initial public offering and listing on the gem on November 30th, the number of new shares issued by the company is 22 million shares, the issue price is 12.11 yuan per share, and the total share capital after the issue is 88 million shares. the issue price is equivalent to 18 times 16-year price-to-earnings ratio is a reasonable valuation. The EPS of the diluted computing company from 2015 to 2017 is 0.65,0.67 and 0.77 yuan respectively. According to the 25-27 times PE of the special equipment in 2016, the reasonable value range is 16.75-18.09 yuan.
Risk tips: global economic volatility risk; exchange rate fluctuation risk.