Research situation:
Recently, we conducted an on-the-spot investigation of the 525 pump industry for the additional offering and investment project of Beihua shares, and had a detailed exchange with the leaders of relevant companies on the production and operation of Beihua shares and the 525th pump industry.
Main points of investment:
The company's leading position of nitrocellulose is consolidated, and the competition pattern of the industry is stable.
At present, the company has a production capacity of 55000 tons of nitrocellulose, with a domestic market share of 51.48%. According to the plan, by 2015, the company will have a production capacity of 60, 000 tons / year of nitrocellulose, 30, 000 tons of nitrocellulose solution and 3000 tons of nitrolacquer. At present, the global nitrocellulose production capacity is mainly in Europe and Asia, with the top seven manufacturers accounting for more than 70%, of which the domestic capacity is more than 90,000 tons, and the competition in the industry is stable.
Although the nitrocellulose industry has hit bottom and rebounded, it is relatively slow.
With the gradual recovery of the downstream market, the demand for nitrocellulose has increased slowly. The company's nitrocellulose orders began to increase, and prices rose slightly. It is expected that the company's nitrocellulose sales will increase by about 18% in 13 years, and the annual average price will increase by 5%, 10%, and the recovery of industry demand is still insufficient.
If you want to develop differently, it will help enterprises to grow new.
In order to speed up the development of the company, get rid of the situation of single old business and slow development, Beihua shares plan to develop differently, open up emerging markets, issue financing to acquire and invest in Xiangfan May 25 pump industry, lay the foundation for the company to enter environmental protection and emerging industries in the future.
The May 25 pump industry has the advantages of leading technology, stable performance and promising prospects.
The May 25 pump industry is the only enterprise in China that introduces corrosion-resistant and wear-resistant pump technology and takes the lead in developing professional FGD pumps. Its stainless steel C4 steel can be customized according to customer needs and is listed in the national standard. Its duplex stainless steel material has reached the world's advanced level. The company's 13-year production capacity will reach more than 7000 sets, flue gas desulfurization market share 40%, phosphate compound fertilizer market share up to 70%. And has entered the nuclear power market. In 12 years, the company has revenue of 528 million yuan and profit margin of more than 12.0%.
Performance forecast
In view of the technical advantages of Beihua in the field of cellulose and its derivatives, as well as the rich production experience, technical and market advantages of the May 25th pump industry in the professional pump industry, the profitability is strong. We believe that future fund-raising projects can ensure sustained and steady growth in performance. It is estimated that after the completion of the acquisition, the combined revenue in 2013 and 2014 will be 2.112 billion yuan and 2.34 billion yuan respectively, with earnings per share of 0.36 yuan and 0.48 yuan, and the reasonable value range per share after issuance will be 8.82 yuan to 10.08 yuan, corresponding to a 13-year PE of 24.5-28 times, giving the company a "recommended" rating.