Mainly serves the coal trading port, with the largest scale in the industry. In terms of revenue generated by coal testing and inspection services in 2015, the company is the largest supplier of coal testing and inspection services in China, with a market share of about 18.9%. Through eight service centers located in China's major strategic coal trading ports, which together accounted for more than 80.0% of China's total water and coal transactions in 2015, the company provides comprehensive services to customers. it mainly includes (1) testing services (providing coal quality assurance); (2) appraisal services (ensuring that the quantity of coal complies with the contractual provisions) And (3) witness and ancillary services (to avoid irregularities or anomalies in the course of coal testing and transportation, and to ensure that the weight of coal carried by railways, trucks or conveyor belts or the conditions of shipment of goods comply with the contractual requirements.
Benefiting from China's energy reform, the industry has certain prospects. In 2015, the total amount of coal for quality inspection or inspection reached 800 million tons, accounting for only about 24.9% of coal consumption in the same year. As a result of the continued liberalization of the coal industry and environmental problems leading to stricter industry standards for quality assurance, the company is expanding its range of services to occupy the entire coal distribution chain, thereby maintaining steady growth potential in the coal testing and inspection market. Among the service network established by the company, Northern Sigang is its largest market, with revenue generated in 2013, 2014 and 2015 totaling RMB 92.3 million, RMB 100.6 million and RMB 116.5 million respectively, accounting for 78.8%, 72.1% and 74.8% of the total revenue for the same period.
Has a number of unique advantages. The company has the following competitive advantages: (1) to be the largest supplier of coal testing and inspection services in China, with remarkable achievements and potential for stable growth; (2) to benefit from China's strict regulation of coal quality and the relaxation of restrictions on the coal industry, to operate in the steadily developing coal testing and inspection industry; (3) to maintain long-term and stable business relationships with reputable large customers in China's coal industry. (5) strong R & D capability, mainly focused on improving testing procedures in the ever-changing industry environment.
The company's asset-liability ratio has risen rapidly in the short term. The asset-liability ratio has increased from 0 to 82%, mainly due to the fact that the company began to raise funds other than equity financing last year and began to issue bonds, which is still at the level of management and control.
It is recommended to subscribe carefully. Under the macro background of the Chinese government vigorously promoting the transformation of the clean energy and traditional coal industry, we believe that the coal monitoring industry the company is in has a certain prospect. In terms of valuation, the company's 2015 price-to-earnings ratio of 8.73 to 14.82 times, price-to-book ratio of 2.28 to 2.76 times, compared with the industry valuation is reasonable, it is recommended to carefully subscribe.