Main points of investment
1. The company's products lead the industry in terms of comprehensive competitiveness.
The company is mainly engaged in the research and development, manufacture and sales of fluid control equipment and equipment, including all kinds of copper plumbing valves, fittings and other plumbing equipment. The company has a wide range of products and has been recognized by a number of international authoritative certification organizations. Rich experience in the industry, excellent product R & D team, and a number of high-quality enterprise customers to establish long-term cooperative relations, strong comprehensive strength.
two。 The downstream demand is strong, and the development prospect of the industry is good.
The demand for plumbing equipment in Europe and the United States and other countries is stable, and the company has maintained a long-term and stable cooperative relationship with customers in these countries after years of development. The implementation of the lead-free law in the United States has increased the demand for lead-free valves, and is expected to drive the demand for lead-free valves in Europe, Japan, South Korea and so on. China's industrial policy also vigorously promotes the concept of green security, which will bring a lot of beneficial effects to the industry.
3. The funds raised will be used for an industrialization project, a research and development project and supplementary liquidity.
The company plans to raise funds for an additional 30 million sets of lead-free plumbing equipment production line project, valve R & D and testing center project and supplementary liquidity. Among them, after the new annual production line of 30 million sets of lead-free plumbing equipment reaches production, the company will achieve a business income of 436 million yuan.
4. Investment advice:
We estimate that the EPS of the company from 2016 to 2018 is 0.72,0.99,1.43 yuan respectively.
The corresponding reasonable price range is 21.6-28.8 yuan.
5. Risk Tips:
Business performance decline risk; raw material price fluctuation risk, market competition aggravates risk, customer is more concentrated risk.
