Main points of investment:

The company is in the non-ferrous metal Calendering industry.

The company's main business is the R & D, production and sales of high-performance aluminum alloy materials and their machined products.

Fund-raising project

1) industrialization project of high performance aluminum alloy materials for special equipment for nuclear fuel processing

In view of the vigorous development trend and broad market prospects of the nuclear power industry, the company plans to complete the construction of the industrialization project of high-performance aluminum alloy materials for special equipment for nuclear fuel in 2015. strive to make the company's annual production capacity of aluminum alloy extruded materials and forgings reach 9250 tons and reach production in 2017.

Project economic benefit analysis: the project fully reaches production year (the third year of production period), excluding tax, the annual operating income is 363.22 million yuan, the average annual profit during the operation period is 85.09 million yuan, the average annual net profit is 72.32 million yuan, and the total investment return rate is 21.3%. The financial internal rate of return of project investment before tax is 20.80%, the financial internal rate of return of project investment after tax is 18.5%, and the payback period of project static investment (after income tax) is 7.4 years.

Profit forecast

According to the estimated construction progress of the investment project, it is initially estimated that the net profit attributed to the parent company will change by 70% and 54% in 2015-2016, corresponding to diluted earnings per share of 1.35 yuan and 2.08 yuan.

Pricing conclusion

Taking into account the valuation of comparable companies in the same industry, we believe that the reasonable price for Zhongfei shares is 67.50-81.00 yuan, corresponding to a price-to-earnings ratio of 50 to 60 times 2015 earnings per share.