Main points of investment:

The company is one of the largest exporters of spare lighting products in China.

About 80% of the company's products are exported. In 2012, the company's exports of rechargeable spare lighting products accounted for 3.46% of the industry's exports, and the exports of rechargeable AC / DC fans accounted for 5.91% of the total fan exports, ranking second in the industry.

Steady income growth and a decline in net profit in the first half of 13 years

The company's operating income increased by 10.98% in 2011 over 2010, 11.17% in 2012 over 2011, and 5.93% in the first half of 2013 compared with the same period last year, maintaining a relatively stable growth rate. The company's net profit in 2011 increased by 23.76% over 2010, and net profit in 2012 increased by 10.63% over 2011. The company made a net profit of 21.2081 million yuan in the first half of 2013, down 37.53% from the same period last year.

Fund-raising projects will solve the bottleneck of insufficient production capacity.

After the fund-raising project is put into production, the bottleneck of insufficient production capacity of the company will be effectively solved, and the proportion of rechargeable fans and rechargeable spare lighting products will tend to be more reasonable.

Profit forecast

We expect the net profit attributed to the parent company to decline 35.32% year-on-year in 2013. The net profit attributed to the parent company in 2014 will increase by 53.04% year-on-year, with corresponding diluted earnings per share of 0.43 yuan and 0.66 yuan, respectively.

Pricing conclusion

Taking into account the valuation of comparable companies in the same industry, we think that the reasonable price given to Jinwright is 13.20 yuan-15.84 yuan. Corresponding to the price-to-earnings ratio of 20 to 24 times earnings per share in 2014, we propose to inquire according to the discount rate of 20.00%. The inquiry range is 10.56-12.67 yuan.