The overall fair value range for the long term should be 2,738 to 2,873 billion yuan. We expect the company's net profit to be RMB 183 million, RMB 186 million, and RMB 192 million in 2024-2026, with year-on-year growth rates of -3.70%, 1.65%, and 3.27%. Based on the maximum share capital of 160 million shares after issuance, the corresponding EPS is 1.14 yuan, 1.16 yuan, and 1.20 yuan, respectively. Based on the FCFF valuation method and PE valuation method, the overall fair value range for the future should be $2,738-2,873 billion. The price-earnings ratio ranges corresponding to the company's 2023 net profit deducted ($190 million) and net profit ($182 million) were 14.44-15.15 times and 15.08-15.82 times, respectively; the net profit of 23Q2-24Q1 ($192 million) corresponds to the rolling price-earnings ratio range of 14.27-14.97 times; the 2024 forecast net profit to mother 183 million corresponds to a price-earnings ratio multiplier range of 15.00-15.74 times.
In contrast, in the past month ending May 31, 2024, the static average price-earnings ratio of the chemical raw materials and chemical products manufacturing industry (industry code: C26) announced by China Securities Index Co., Ltd. was 23.13 times, and the rolling average price-earnings ratio was 22.90 times.
Environmentally-friendly heat stabilizers still have broad alternative space in our country. With the promulgation of a series of cadmium bans and lead restrictions, and judging from the development trend of geothermal stabilizers in Europe, non-toxic environmental protection is an important development trend in the heat stabilizer industry. As of 2020, lead-salt heat stabilizers accounted for about 34% of China's annual consumption of PVC heat stabilizers, and there is still plenty of room for replacement.
Jianbang Co., Ltd. has a technical threshold and product competitiveness, while actively expanding new applications for old products. The company's core products are of high quality and all meet or exceed industry-leading standards. At the same time, the company continued to expand the application fields of existing products. During the reporting period, the company seized the opportunity of rapid development of the NEV industry, pioneered the application of titanate in cathode materials for new energy lithium batteries; at the same time, promoted the application of SECK in polyurethane, flame retardants, etc., and applied for several patents during the reporting period.
The fund-raising project will further strengthen the company's production capacity advantage while enriching the product system. The company's fund-raising project will expand the company's production capacity in products such as SEC, titanate, and acetylacetone salt series, enrich the product service system, enhance the company's market competitiveness, and is expected to open up new business space in the future.
Risk warning: The impact of failure to establish profit forecasting assumptions on the company's profit forecast and valuation, the risk of fluctuations in raw materials and energy prices, product price fluctuations, and the risk of failure in new product development.