Main points of investment
China's leading wet-process phosphorus chemical enterprises. The company is a leading wet-process phosphorus chemical enterprise in China, and its main business is the research, production and graded utilization of wet-process phosphoric acid. At present, the company has the production capacity of 150000 tons of feed-grade calcium hydrogen phosphate, 50, 000 tons of feed-grade calcium dihydrogen phosphate, 150000 tons of heavy calcium superphosphate and 100000 tons of fertilizer-grade calcium hydrogen phosphate. Based on the advantage of large local reserves of sulfur, phosphorus, calcium and iron, the company continues to innovate and improve the key technologies such as flotation of low and medium grade phosphate ores, sulphuric acid production from pyrite, cascade utilization of energy and classification utilization of wet-process phosphoric acid. it has improved the integrated industrial chain from the production of sulphuric acid from pyrite and phosphate rock to the production and sale of phosphate and phosphate fertilizer products. It has formed a unique product line model of "acid + fertilizer + salt", which is suitable for its own development, and realizes the sustainable development of the enterprise.
The production line of circular economy has remarkable benefits in graded utilization. Different from the sulfur self-made acid or purchased sulfuric acid process of other feed-grade calcium hydrogen phosphate production enterprises in the same industry, the pyrite acid production technology adopted by the company reduces the production cost and realizes energy cascade utilization and circular economy. And according to the level of phosphoric acid concentration, the company adopts the grading utilization technology of wet-process phosphoric acid, which is used according to the purity of acid, so that the comprehensive utilization rate of wet-process phosphoric acid is more than 98%. The optimal utilization of resources is realized. In addition, the location of the company is rich in resource reserves, which not only meets the company's demand for raw materials, but also saves the purchasing cost of raw materials. We believe that the company has excellent cost control ability and rich product structure, which will stand out in the industry trend of replacing hot-process phosphoric acid with wet-process phosphoric acid and be optimistic about its follow-up development.
Fund-raising projects promote the company's industrial upgrading and further improve the industrial chain. The total share capital of the company before this issue is 70.01 million shares, the total amount of shares issued does not exceed 23.35 million shares, the issue price is 10.25 yuan, the total amount of funds to be raised is 240 million yuan, and the investment project is from 100,000 tons of wet-process phosphoric acid purification to industrial-grade phosphoric acid plant. It is composed of 600,000 t / a medium and low grade phosphate ore flotation plant, 240,000 t / a pyrite sulphuric acid plant, 3MW waste heat back pressure generator set, 130,000 t / a wet process phosphoric acid concentration plant and corresponding environmental protection and office facilities. The fund-raising project will focus on the main business, which will further improve the company's industrial chain, enrich the product structure, maintain the company's competitive advantage and market position in the field of classified utilization of wet-process phosphoric acid, and promote the company's industrial upgrading and form a new profit growth point. After the project is put into production, the average annual sales income is expected to be 666 million yuan, the after-tax profit is 102 million yuan, and the total return on investment of the project is 30.41%. The profitability has been significantly improved and the development of the company has been promoted.
Profit forecast. It is estimated that the EPS of the company from 2016 to 2018 will be 0.47 yuan, 0.51 yuan and 0.98 yuan respectively. With reference to the valuation of the comparable company and the growth of the company, we think that the reasonable valuation of the company in 2016 should be 30% 35 times, and the corresponding stock price is 14.10% 16.45 yuan.
Risk tips: the risk of raw material price fluctuations; the risk of downstream demand downturn; the risk of lower-than-expected construction of fund-raising projects.