Company profile:

Since its establishment, the company has been engaged in the development, production and sales of micro and special motors. The company's main products include single-phase cover pole motor (including cross-flow fan), series motor, stepper motor, DC brushless motor.

Before this public offering, the controlling shareholder of the issuer was Nie Baosheng, and the actual control was Nie Baosheng, Nie Pengju and his son. Nie Baosheng directly holds 41.64% of the shares of the issuer, indirectly holds 6.84% of the shares of the issuer through Yongzhou Kawang, with a total of 48.48% of the shares of the issuer, and Nie Pengju directly holds 30.92% of the shares of the issuer. The actual controllers, Nie Baosheng and Nie Pengju, collectively (including indirectly) hold 79.40% of the shares of the company.

Current situation and prospect of the industry

The huge market demand brings broad space for development to the industry. Micro-special motor industry is an indispensable basic product industry in the modernization of national economy and national defense. In recent years, with the rapid development of the downstream application field of micro-special motors, China has become a big country in the production and export of micro-special motors.

Industrial upgrading brought about by technological development. After years of development, China's industrialization has made considerable progress, and breakthroughs have been made in some key technological fields. In the fields related to the production of micro-special motors, China has made great progress in the specialized production of spare parts, self-made raw materials and the manufacture of special equipment, although there is still a gap with the advanced level of foreign countries. however, it has laid a good foundation for the development of micro-special motors and promoted the industrial upgrading of micro-special motors in our country.

Highlights of the company:

Customer resource advantage. The company has a close cooperation relationship with the above-mentioned high-end home appliance customers, and the proportion of export during the reporting period is more than 60%. In the process of long-term and stable cooperation with these customers, it has not only promoted the continuous improvement of the company's product technical level, product quality and service, but also promoted the sustained and stable growth of the company's sales revenue, and thus formed a good brand influence. it has laid a solid customer resource foundation for the further market expansion of the company's products.

Product quality advantage. As a global supplier of micro and special motors for high-end household appliances customers, the company has always attached great importance to the improvement of product quality, and has passed CCC certification in China, UL certification in the United States, VDE and TUV certification in Germany, as well as ISO9001 quality system certification and ISO14001 environment system certification. At the same time, the company's products have passed the product testing and verification of many international well-known electrical appliance manufacturers, such as General Electric Co (GE) in accordance with aviation standards for the testing of its products.

Fund-raising project

1. It is proposed to raise 116 million yuan for the construction projects of technical renovation and capacity expansion of cover-pole motors and cross-flow fans.

2. It is proposed to raise 26 million yuan for the industrialization project of high efficiency brushless DC motor.

3. It is proposed to raise 29 million yuan for the industrialization project of servo motor system of 3KW and below.

4. It is proposed to raise 75 million yuan for the construction project of Shenzhen R & D Center.

5. It is proposed to use the raised funds of 22 million yuan for the information upgrading construction project.

Main potential risks

Sales customers focus on risk. During the reporting period, the company has established long-term cooperative relations with international famous electrical companies such as Electrolux and Panasonic. The sales revenue of the top five customers accounted for 35.89%, 42.28% and 40.32% of the main business income in 2014, 2015 and 2016, respectively. If the demand of the above major customers decreases due to factory closure or market factors, or the production line is transferred to other suppliers to purchase related products, it will have a negative impact on the production and operation of the company.

Market competition risk. At present, the concentration of micro-special motor industry in China is not high, the number of enterprises is large, the industry is in a state of perfect competition, and the product competition is fierce. Enterprises in the industry must continuously increase the investment in R & D and the continuous transformation of the production process in order to seize the market with the advantages of cost and quality, and remain invincible in the fierce competition. In the future, with the sustained development and structural adjustment of the industry, the overall concentration of the industry will be improved, and the competition will become increasingly fierce. Some enterprises with small scale and weak comprehensive competitiveness will face the risk of elimination.

Valuation

The issuer belongs to the electrical machinery and equipment manufacturing industry in the manufacturing industry. On August 3, 2017, China Securities Index Co., Ltd. released an average monthly static price-to-earnings ratio of 29.60 times for the electrical machinery and equipment manufacturing industry. It is estimated that the company's earnings per share in 2017 and 2018 are 0.85 yuan and 0.93 yuan respectively, combined with the current market conditions, the initial pressure is expected to be 37 yuan-42 yuan.