It is estimated that the initial pressure level of listing is 9 yuan to 11 yuan.
Company profile:
The company is mainly engaged in urban gas operation business, which belongs to the priority development category in the Natural Gas Utilization Policy promulgated by the National Development and Reform Commission in 2012, specifically for the construction, operation and service management of Guizhou natural gas branch pipeline, urban gas transmission and distribution system, liquefied natural gas receiving and reserve supply station, filling station and related supporting facilities, as well as the corresponding engineering design, construction and maintenance. That is, to purchase pipeline natural gas or liquefied natural gas from upstream natural gas suppliers, through natural gas branch pipelines, gate stations, storage and distribution stations, and transmission and distribution networks at all levels built or operated by the company, according to user demand and pressure, natural gas is transmitted and distributed to urban residents, commercial users, industrial users, distributed energy users and gas filling stations and other users.
Current situation and prospect of the industry
The continuous improvement of the status of natural gas in China's energy structure not only reflects the importance our country attaches to the development of natural gas, but also shows that there is a huge actual consumption demand for natural gas, and the population and total consumption of natural gas are growing strongly. According to data from the National Bureau of Statistics, the number of urban natural gas users exceeded 286 million in 2015. According to BP data, China's natural gas consumption has increased from 25.347 billion cubic meters in 2000 to 210.34 billion cubic meters in 2016, with an average annual growth rate of 14.14 percent, indicating China's strong natural gas consumption market demand. With the acceleration of urbanization in Guizhou Province, the total population and urban population of Guizhou Province are increasing, and the proportion of urban population in the total population has increased from 34.96% in 2011 to 44.15% in 2016. The acceleration of urbanization in Guizhou Province has expanded the base of gas users, thus providing a huge potential market development space for the urban gas industry in Guizhou Province.
Highlights of the company:
The company is the largest urban gas management enterprise in Guizhou Province, with gas transmission and distribution supply and sales service as its core business, extending to the fields of central heating and distributed energy management, based on the integration of superior resources and the market development of the whole province. to create a large-scale comprehensive gas group with multiple industrial development, and promote the rapid and stable development of Guizhou gas industry. After years of efforts and development, the exclusive franchise of pipeline gas has been obtained in 25 specific areas of the province and 1 specific area outside the province, with a planned population of more than 12 million. By the end of June 2017, the company's total assets had reached 7.688 billion yuan, 3395 employees, 40 wholly-owned and holding subsidiaries and 10 shareholding enterprises. The company has built a total of 3 natural gas branch pipelines in the province, providing users in the province with a high-quality and efficient service platform and a number of long-term and stable customers.
Fund-raising project
1. Guiyang urban gas pipeline reconstruction and expansion project.
Main potential risks
(1) risk of external guarantee
The company is a shareholder of Huaheng Energy, and the guarantee amount to Huaheng Energy is 110 million yuan. As of the date of signing of this prospectus, the guarantee corresponding to the outstanding loan amount is 54.5 million yuan. If the business performance of the enterprise declines in the future and fails to repay the maturing loan, it may have a certain impact on the production, operation and financial situation of the company.
(2) the management risks arising from the expansion of business scale:
During the reporting period, the company's assets increased from 4.5599325 billion yuan at the end of 2014 to 7.6876048 billion yuan at the end of June 2017, and operating income increased from 1.9263984 billion yuan in 2014 to 226906.75 million yuan in 2016. Whether the company management can meet the needs of the company's development in time will directly affect the normal realization of the company's strategic objectives, thus affecting the company's operating performance, profitability and image in the capital market. the company has management risks caused by the expansion of business scale.
Valuation
The issuer works in the gas production and supply industry, and as of October 23, 2017, the average static price-to-earnings ratio for the most recent month released by the CSI was 25.6 times. It is estimated that the company's earnings per share in 2017 and 2018 are 0.24 yuan and 0.30 yuan respectively, combined with the current market conditions, the initial pressure is expected to be 9 yuan-11 yuan.