The application space of RF coaxial cable market is broad. The company's main products are radio frequency coaxial cable. From the downstream field, radio frequency coaxial cable is widely used in electronic equipment, mobile communications, radio and television, aerospace and other fields. The international RF coaxial cable market concentration is relatively high, the United States Baitong, Gore, Sweden Harper, France Nixon, Japan's Sumitomo, Hitachi and other enterprises are the main manufacturers of RF coaxial cable; the domestic RF coaxial cable industry started relatively late, mainly low-end homogenized products, low gross profit margin, high-end product market has been occupied by foreign manufacturers for a long time.
The company has a rich variety of products and the technical level is in the forefront of domestic companies in the same industry. The company is one of the production enterprises with a relatively complete variety of domestic RF coaxial cable and strong brand influence, and has its own stable customer base in the field of high-end RF coaxial cable occupied by multinational enterprises, including Apple Inc, Samsung, Hewlett-Packard, Lenovo, TP-LINK and many other world-famous electronic equipment manufacturers, and establish long-term strategic cooperation with a number of military enterprises. The "Shenzhou" series of ground launch systems, military survey ships and other military hardware or systems all apply the company's products, representing the advanced level of the domestic stable phase microwave and radio frequency coaxial cable manufacturing industry. established the company's product high-tech, high-quality market position.
The company has strong profitability and sustainable development ability. Thanks to the development of the industry and the advantages of the company's technology research and development, product quality, brand and reputation, customer resources, service and management, the company's main business is developing well. From 2013 to 2015, the company's operating income was 251 million yuan, 243 million yuan and 264 million yuan respectively. The gross profit margin is 26.73%, 24.43% and 25.65% respectively, which is basically stable in the face of intensified competition in the product market, reflecting the company's good bargaining power and strong market competitiveness.
Fund-raising projects to enhance the overall competitiveness. The sales scale of the company's RF coaxial cable shows a steady upward trend, but due to capacity constraints, capacity utilization has reached nearly 100%, and the production line is operating at full load. This time, it is proposed to invest 178 million yuan to raise funds for the construction of "subtle and ultra-fine RF coaxial cable construction project", "stable phase RF coaxial communication cable and assembly construction project" and "RF coaxial communication cable and component R & D center project". In order to alleviate the company's capacity bottleneck, it is expected that the market share will be further improved in the future.
The estimate is reasonable and the value is higher than the issue price, so it is recommended to apply for purchase. We estimate that the EPS of the company in 2016, 2017 and 2018 will be 0.55 yuan, 0.64 yuan and 0.75 yuan respectively. With reference to the valuation of comparable companies in the industry, and considering the development space of the RF coaxial cable industry and the benefits brought by the company's capacity expansion, we give the company 30mm 35 times dynamic PE in 2017, with a corresponding value range of 19.20-22.40 yuan. The current issuance price of the company is 8.84 yuan, which is lower than the lower limit of the reasonable value range. Therefore, the purchase proposal is given.
Main risk factors. Increased competition in the industry led to a decline in gross profit margin; the progress of fund-raising projects was lower than expected.