The company ranks among the first echelon of domestic smart gas meter manufacturers, with more than 10 million online users and a market share of about 20%. At present, there are 120 million on-line gas meters in China, including 40-50 million intelligent gas meters. At the price of 250 yuan per unit, the current demand for replacement of mechanical gas meters in stock is about 20 billion yuan. Fund-raising projects focus on capacity expansion and technology, market layout, civil and industrial and commercial products increased by 1 million and 20,000 annually, respectively, helping the company to further expand its market share.
Civil intelligent gas meters and control devices are the main source of income. The company's main products are residential, industrial and commercial smart gas meters and control devices, of which civil smart gas meters and their control devices are the main source of income, accounting for 88% of the total revenue in 2014.
Ranks first in the domestic smart gas meter echelon. The company ranks among the first echelon of domestic smart gas meter manufacturers, with more than 10 million online users and a market share of about 20%. Among them, there are more than 2 million in Beijing and more than 500000 in Hebei, Shandong, Shanghai, Jiangsu, Sichuan, Yunnan, Guangdong and other places. The company's main customers are gas operators in major cities and regions, and the cooperative relationship is stable.
Bidding and use mode determine that the competition in the industry is not fierce. The bidding subject of the intelligent gas meter is generally the gas company, which requires high safety and stability of the gas meter. Generally, some manufacturers are selected to try out the products, and finally several manufacturers are selected to enter the bidding system, and the suppliers will not be changed easily. The competition in the smart gas meter industry is not fierce, and the profit level of the products is stable. In addition to Pioneer Electronics, the main domestic smart gas meter manufacturers also include Golden Card shares, Xintian Technology, Langfang Xinao, Zhejiang Weixing, Aerospace Power, Dandong Sikai and so on.
Step gas price boosts the intelligent proportion of gas meters. At present, there are 120 million on-line gas meters in China, including 40-50 million intelligent gas meters. In 2014, the NDRC put forward relevant policies such as the "Circular of the National Development and Reform Commission on adjusting the Price of Natural Gas for non-resident use" and the "guidance on establishing and improving the ladder Price system for domestic Gas use". It is required to implement ladder gas prices in ventilated cities by the end of 2015, and the implementation of ladder gas prices will directly give rise to the demand for smart gas meters. At the price of 250 yuan per unit, the current demand for replacement of mechanical gas meters in stock is about 20 billion yuan.
Fund-raising projects focus on expanding production capacity. The company's investment projects include: smart gas meter construction project (construction period of 2 years, new civil intelligent gas meter and control device production capacity of 1 million, industrial and commercial product production capacity of 20, 000), innovative technology R & D center construction project, marketing and service network construction project, supplementary liquidity project, with a total investment of 318.86 million yuan. It is estimated that after reaching production, the annual increase in business income will be 312 million yuan, and the profit before interest and tax will be 72.85 million yuan.
Profit forecast and investment rating. It is estimated that the company's net profit from 2015 to 2017 will grow by 11.89%, 24.46% and 23.79%, with earnings per share of 0.75 yuan, 0.93 yuan and 1.15 yuan. With reference to the valuation of the industry and the performance of the company, it will be given 25-30 times PE in 2015, with a reasonable value range of 18.75-22.50 yuan. "recommended purchase" rating.
The main uncertainty of the company. The process of raising investment projects is not as expected, and the market competition aggravates the risk.