The company is the mainstream manufacturer of DC motor in China, and its products are mainly used in metallurgy, electric power, building materials and other fields. Due to the characteristics of customized production, once a cooperative relationship is established between customers and motor manufacturers, they will not be easily replaced. The company and many downstream leading enterprises to establish long-term cooperative relations, build a strong channel barrier advantage. This investment project focuses on capacity expansion, with an additional production capacity of 2.4 million kilowatts per year after the completion of the project. The company's AC motor production capacity will be increased to further expand its market share.
DC motors are the main source of income, and the products are mainly used in the industrial field. The company's main products include DC, AC motors, test power systems, generators and so on. At present, DC motors are the company's main source of revenue, accounting for 40.31% of the total revenue in the first half of 2014. The company's products are mainly used in metallurgy, electric power, building materials and other fields.
Major manufacturers of DC motors. According to the Electrical Appliance Industry Association, in 2013, the company produced 542000 kilowatts of DC motors, with a market share of 7.89 percent, ranking fourth among major enterprises; large and medium-sized AC high-voltage motors produced 587000 kilowatts, with a market share of 1.44 percent, ranking 14th among major enterprises. The company's main competitors include Yongji New Speed, Shanghai Electric, New Hengli, Harbin Power, Xiangdian and so on.
Under the customized mode, accumulate a strong customer base. At present, the domestic large and medium-sized motors show a monopoly competition pattern. Large and medium-sized motors adopt customized production mode, customers need to repeatedly verify the performance of the motor before establishing a cooperative relationship. Therefore, once a partnership is established, suppliers will not be changed easily. The company has established long-term cooperative relations with many downstream leading enterprises: Baosteel, Angang, Zhuzhou Times, China Timber Construction, etc., and build strong channel barrier advantages.
The motor industry shows a steady growth trend. In recent years, due to the low prosperity of industrial enterprises, the domestic motor industry has maintained a steady growth of less than 10%. It is expected that in the next few years, the overall industry growth will continue to maintain steady growth, in which the AC motor market space is about 400-500 million kilowatts / year.
Fund-raising projects focus on capacity expansion. This fund-raising project includes: large and medium-sized high-efficiency and energy-saving motor production base, large motor transformation, high-efficiency and energy-saving motor research and development center, to raise 267 million yuan. After the production base was put into production, the production capacity of large and medium-sized high-efficiency and energy-saving motors increased by 1.9 million kilowatts per year, with an annual income of 470 million yuan and a net profit of 73.7105 million yuan. After the completion of the transformation project, the production capacity of large motors will be increased by 500000 kilowatts per year, with an annual income of 120 million yuan and a net profit of 18.57 million yuan.
The reasonable value range of the company's stock is 11.57-16.02 yuan. We predict that the company's earnings per share from 2014 to 2016 will reach 0.80,0.89 and 1.01 yuan respectively. With reference to the peer valuation, the company is given a PE of 13-18 times in 2015, with a corresponding value range of 11.57-16.02 yuan. It is recommended to apply carefully.
The main uncertainty of the company. The process of fund-raising project is not up to expectation, and the risk of market competition.