Core ideas:
The company is a leading enterprise in road and bridge construction in Northwest China.
The company is mainly engaged in the construction, maintenance, survey and design, test and inspection of road and bridge projects, as well as the production and sales of engineering facilities such as steel corrugated culverts. It is a road and bridge engineering construction enterprise with the most complete construction qualification and the highest qualification level in Qinghai Province. This time, it is proposed to issue 99.7 million new shares at a price of 5.03 yuan per share, and the total amount of funds raised is about 501 million yuan.
Road and bridge construction industry: the development prospect of the western region is considerable, and the industry competition is fierce.
The road and bridge construction industry is an intellectual and technology-intensive industry, and the market is relatively scattered. Domestic super-large, national construction enterprises, traffic design institutes and more and more foreign enterprises constitute a highly competitive road and bridge construction market. The construction of roads and bridges in the western region where Qinghai Province is located is the key area of national infrastructure construction, which will still develop rapidly during the 13th five-year Plan period, and the regional market space is very broad.
Multiple advantages such as experience, qualifications and new orders consolidate the company's regional leading position.
The company has rich construction experience in the plateau and other complex geological environment. From 2013 to 2015, the company ranks first in the construction industry in Qinghai Province, with a market share of 4.75%, 5.94% and 5.88%, respectively. The company belongs to the road and bridge engineering construction enterprise with the most complete construction qualification and the highest qualification grade in Qinghai Province. From January to May 2016, the total amount of new construction contracts increased by 55.1% compared with the same period last year. Multiple advantages consolidate the company's regional leading position and ensure that it has a strong competitive advantage in this field in the future.
Profit forecast
We predict that the net profit attributed to the parent company from 2016 to 2018 is 0.97,1.12 and 129 million yuan respectively, with year-on-year growth of 10.1%, 15.1% and 15.1% respectively, and the diluted EPS is 0.24,0.28,0.32 yuan respectively. The median PE predicted by industry comparable companies in 2016 is about 32 times.
Risk hint
The risk of macroeconomic decline and changes in regulation and control policies; the risk of intensified market competition in the road and bridge construction industry; the risk of project quality and engineering accidents.