Company profile:
As a complete set of technology and service provider for scientific decision-making of highway maintenance, the company is mainly aimed at highway management agencies at all levels of government, toll road operation and management enterprises, as well as enterprises engaged in highway maintenance inspection, maintenance design, maintenance consultation and maintenance construction, to provide testing equipment, information systems and technical consulting services related to scientific decision-making of highway maintenance. The company's main business includes road condition rapid testing equipment production and sales, highway maintenance information system development and sales, highway maintenance decision-making consulting services.
Current situation and prospect of the industry:
The highway is an engineering structure with a certain service life. after the highway is completed, affected by the environment, traffic load and other factors, the performance of the pavement and various facilities will be damaged to varying degrees, and the performance of the pavement will worsen. It will increase the operating costs of vehicles, including the consumption of fuel, tires and warranty materials, as well as travel time. Serious highway damage may even affect the safety of driving.
In China, the development of multi-functional rapid detection equipment for road conditions began in the 1990s. due to the rapid development of highway construction at that time, the mileage of highway maintenance increased rapidly, at the same time, heavy traffic and traffic volume increased rapidly. the demand for large and medium-sized pavement maintenance is emerging rapidly. With the passage of time and the increase of the total amount of facilities, the demand for highway maintenance in China shows a rapid growth trend. Coupled with the long-standing concept of "reconstruction and light maintenance" in our country, the foundation of highway maintenance is very weak, and the maintenance task is arduous. A large number of early-built highways have entered the stage of reconstruction and expansion and large and medium maintenance, and the maintenance task is increasing year by year.
The national highway maintenance mileage increased from 2.6821 million km (77.6% of the total highway mileage) at the end of 2006 to 4.4656 million km (97.6% of the total highway mileage) at the end of 2015. With the passage of time and the increase of the total amount of facilities, the demand for highway maintenance shows a rapid growth trend. according to the estimation of the average once every 10 years and once every 5 years, the mileage of major and medium maintenance of highways in our country reaches 800000 km per year, of which the highway is more than 14000 km. The national investment in highway maintenance increased from 112.47 billion yuan at the end of 2006 to 388.99 billion yuan at the end of 2015.
Highlights of the company:
Since its establishment, the company has focused on the research and development of high-end equipment, large-scale software, key technologies, engineering verification and industrialization demonstration in the fields of rapid road condition detection, highway asset management, maintenance decision-making consultation, and comprehensively master the core technology of highway maintenance scientific decision-making industry. To undertake the important task of leading the establishment of the only national innovation platform in the field of highway maintenance technology, "National Engineering Research Center of Highway maintenance Technology" and industry-level "Highway Network Intelligent maintenance Technology and system Collaborative Innovation platform". Participated in a number of major scientific research projects, participated in the formulation of a number of important technical policies and standards in the industry, and won many scientific and technological awards such as the National Science and Technology Progress Award.
Fund-raising project
1. The project of Highway Intelligent maintenance Technology Application and Development Center.
Main potential risks
(I) the risk of a decline in overall business performance in the future
In the past three years, the company's comprehensive gross profit margin was 69.72%, 67.54% and 64.29% respectively, which was higher as a whole, but showed a downward trend year by year, mainly due to the company's business growth and the increase in staff compensation, resulting in an increase in operating costs such as employee compensation and travel expenses compared with the rapid increase in operating income compared with the same period last year. After years of development, as a supplier of complete sets of equipment and technical services for scientific decision-making on highway maintenance, the company has maintained its competitive advantage in the field of industry segmentation, but in the future, with the intensification of market competition and the continuous change of the industry environment, the company's overall business performance may still decline to a certain extent.
(2) the risk of the loss of core technical personnel and core technologies:
The company is engaged in the business of knowledge-and technology-intensive emerging industries, a high degree of dependence on technical personnel. Competitors in the same industry may offer higher treatment to attract the company's technical personnel, or may be affected by other factors leading to the loss of technical personnel of the company, the company faces the risk of loss of core technical personnel. Although the company attaches great importance to the confidentiality of the core technology, if the flow of core technical personnel, lax enforcement of the company's technology secrecy measures lead to technical disclosure, or weak patent protection measures, it may weaken the company's technological advantages and adversely affect the competitiveness of the company.
Valuation
The issuer works in a professional and technical service industry. as of June 27, 2017, the average static price-to-earnings ratio for the latest month released by the CSI was 54.02 times. It is estimated that the company's earnings per share in 2017 and 2018 are 0.71 yuan and 0.74 yuan respectively, combined with the current market conditions, the initial pressure is expected to be 35 yuan-40 yuan.
