Main points of investment:

A leading professional manufacturer of garden machinery

The company is engaged in the research, design, manufacture and sales of garden machinery and portable digital generators, and is committed to becoming a leading professional manufacturer of garden machinery in the world. The company is mainly engaged in the R & D, design, manufacture and sales of products with gasoline engine as the core components, such as chainsaw, irrigation cutter, hedge trimmer, riding lawn mower and portable digital generator. At present, the company is one of the important exporters of garden machinery products in China, covering the main consumption areas of garden machinery such as Europe and North America, and the export quantity and amount of chainsaws rank in the forefront of the industry.

Fund-raising projects to improve profitability

The investment projects raised in this issue are chainsaw, irrigation cutting machine and hedge trimmer production plant and ancillary facilities project, garden machinery R & D center and ancillary facilities project. After the completion of the project, we can gain the advantage of economies of scale, reduce the unit product cost, improve the company's profitability, improve the company's production process level and new product research and development capability, and provide strong technical support for the company's product sales and manufacturing. ensure the company's competitive position in the industry.

Profit forecast

According to the construction progress of the fund-raising project, we estimate that the net profit attributed to the parent company in 2015 and 2016 will be 54.3 million yuan and 59.2 million yuan respectively, with year-on-year growth rates of-4.79% and 9.02% respectively, and corresponding diluted earnings per share of 0.62 yuan and 0.67 yuan.

Pricing conclusion

The company intends to issue 22 million shares, with a total share capital of 88 million shares. The company's issue price is 12.11 yuan per share. Considering the valuation and growth of comparable companies in the same industry, we think that the reasonable valuation of the company is 24.68-27.77 yuan, corresponding to the price-to-earnings ratio of 40-45 times of 2015 earnings per share.