According to the Erica letter of intent, the company's IPO expects to raise 706.1467 million yuan, offering underwriting and other expenses totaling 67.8533 million yuan, totaling 774 million yuan. In the audited 2019 annual report, the net profit attributable to the owner of the parent company is 134.7472 million yuan after deducting non-recurring profits and losses, and the diluted EPS is 0.56 yuan. It plans to issue 23.4 million shares, which is calculated at a price of 12.90 yuan per share based on the total amount of capital raised, corresponding to a PE of 22.98 times.
Aili home corresponding to the card industry (C29) nearly a month static PE is 33.76 times, the company according to the fund-raising price corresponding to the PE is lower than the industry PE, do not consider postponing the release, it is estimated that the Allie home IPO issue price is 12.90 yuan.
Aili Home is one of the leading PVC plastic floor production and export enterprises in China. The company's sales of PVC plastic flooring to the United States from 2017 to 2019 were US $149.6714 million, US $205.3739 million and US $158.017 million, respectively, accounting for 4.45%, 4.49% and 3.27% of the exports of similar products. The company was convenient for VERTEX to carry out business cooperation in 2017. From 1999 to 2019, the company accounted for 85.03%, 87.64% and 91.12% of its sales. Vertex accounted for about 40% of Allie's home purchases, and the cooperative relationship was very stable. The American building materials market forms a monopolistic competition pattern, and HOMEDEPOT, the largest household building materials retailer in the world and the second largest retailer in the United States, occupies a high share, and its purchase of PVC plastic floors from VERTEX accounts for about 80% in recent years. Therefore, Allie Home indirectly entered the well-known PVC plastic floor terminal channel supply chain system. With the advantages of product quality and large-scale production, the company can meet the factory inspection and supply requirements of end customers for a long time.
Considering the disclosure of the prospectus and the above analysis, we choose Dream Lily, Zhongyuan Home, Yongyi shares, Henglin shares, Fillinger and Daya Sheng Xiang as comparable companies, and the average price-to-earnings ratio of comparable companies in 2019 is 25.45 times. The company's industry "C29 Rubber and plastic products Manufacturing" has a static P / E ratio of 33.76 times for nearly one month (as of March 3, 2020). Eli's home valuation is lower than the average PE of the CSC industry and directly comparable competitors.
Risk tips: (1) the release pace of IPO is delayed due to force majeure; (2) the company is mainly exported to the United States and is on guard against the risk of exchange rate fluctuations and changes in the trading environment.