Main circuit protection components, customer stability products are rich: the company is the most complete domestic product line, the largest sales scale of the world's well-known fuse manufacturers. In 2010, Hercules was the tenth largest fuse manufacturer in the world. Fuse sales accounted for about 1.86% of the global market share in 2013, with the top seven fuse manufacturers accounting for 92% and the seventh largest fuse manufacturer accounting for 3%. The company has accumulated rich customer resources, distributed in downstream household appliances and consumer electronics, computers, automotive electronics, power and industry and other fields.
The growth rate of the industry is stable, and the domestic development opportunities are outstanding: the market demand for circuit protection components benefits from the development of digital technology, communication technology, new energy and other new technologies, showing a rapid growth trend in recent years. The global electronic and power industry is expected to enter a new round of rapid development period, which will stimulate the market demand for circuit protection components. Although European and American companies are important suppliers of circuit protection components, the electronics industry in the Asia-Pacific region has a strong demand. As the main production base of global electronic products, the mainland and Taiwan have become important consumer areas of circuit protection components. Haolilai, as a foreign investment joint-stock company established by the overall change of Ningli Electronics, has become an important global supplier of circuit protection components on the basis of technology introduction and absorption.
The fund-raising project is used to expand production capacity and establish an R & D center: after the completion of this issue, the funds raised by the company will be used to expand the output of main business circuit protection components, optimize product structure, and strengthen product and technological innovation research and development. After the expansion and construction project of circuit protection components reaches full production, the annual sales income is 327.74 million yuan (excluding tax), the average annual profit is 73.58 million yuan, and the average annual net profit is 62.55 million yuan.
Investment advice: we predict that the company's operating income will grow by the following year from 2014 to 2016.
The EPS was 9.8%, 30.1% and 42.3%, and the net profit growth rate was 14.3%, 23.5% and 35.2% respectively. The EPS was 0.71 yuan and 0.88 yuan after 16.68 million shares were listed in 2014 and 15 years, and the EPS is expected to reach 1.19 yuan after the construction of the fund-raising project is completed in 2016. Considering the uniqueness of the company's industry in the A-share market and the premium of investment projects, it is forecast that the price-to-earnings ratio for 2015 will be 30-35 times, and the price of new shares will be 26.4 Mel 30.8 yuan.
Risk hints: the risk of export tax rebate policy change and high-tech enterprise tax rate change, the risk of downstream demand fluctuation, the risk of R & D project progress falling short of expectations, and the risk of competing with foreign enterprises.