The company expects a net profit of 1.49-167 million yuan in 2019, an increase of 70% over the same period last year. The impact of non-recurrent profit and loss on the company's net profit in 2019 is about 22 million yuan. The company's net profit increased significantly compared with the same period last year, mainly due to a large increase in orders given to the company by its major customer Vestas in 2019 against the background of sustained and steady growth in the global wind power market. After the completion of Siemens Gamesa business integration, the company's orders from Siemens Gomeisa gradually recovered, and orders from Siemens Gamesa increased significantly in 2019 compared with 2018. Under the influence of the policy guidance of China's wind power market, the company's orders and sales revenue of wind power blade mold products have increased significantly compared with 2018; the fund-raising project Shuanyi Science and Technology Yancheng Co., Ltd. and "engine room cover and large-scale non-metallic mold industrialization project" made a profit in 2019.
The company is the domestic wind power cabin cover leader, the customer resource advantage is obvious. The company's main products are wind turbine cabin cover products (product specifications cover 750KW-7MW level), large non-metallic moulds, engineering and agricultural machinery equipment coverings, vehicle carbon fiber composite products, fishing boats, etc. Customers cover new energy fields of wind power, engineering and agricultural machinery, yachts and ships, rail transit and public transport, electric new energy vehicles and aerospace fields. Downstream customers include Denmark's Vestas, Siemens Gomeisa, Xinjiang Goldwind Science & Technology, CSR Zhuzhou Times, Sany heavy Industry, American Caterpillar Inc, CRRC Corporation and other world-famous enterprises.
The gradual investment of fund-raising projects will contribute to the rapid growth of the company's performance. The total investment of the "engine room cover and large-scale non-metallic mold industrialization project" in the company's fund-raising project is 230 million yuan. Part of the project continues to be implemented in Wucheng Branch and part in Dafeng Economic Development Zone, Yancheng City, Jiangsu Province. fund-raising projects to expand existing capacity to effectively solve the problem of insufficient production capacity. According to the 2019 semi-annual report, the company's Yancheng subsidiary has obtained 64 mu of land certificate and is expected to complete the plant construction by the end of 2019; the No. 5 and No. 6 workshops of the company's Wucheng branch have started construction, with two workshops covering a construction area of more than 20,000 square meters. It is expected that the construction will be completed and put into use by the end of 2019. We believe that the gradual investment of the company's fund-raising projects will contribute to the rapid growth of the company's performance.
Profit forecast and investment rating. We estimate that the EPS of the company from 2019 to 2021 will be 1.36,1.69,2.07 yuan respectively. With reference to the valuation of comparable companies in the same industry, we believe that the reasonable valuation range is 20-25 times PE in 2020, corresponding to a reasonable value range of 33.8-42.25 yuan, which is better than the market rating.
Risk hint: downstream demand is not as expected; fundraising project progress is not as expected.