China's leading global supplier of oil drilling and production equipment
The company's main business is oil drilling and production wellhead equipment research and development, production and sales, the main products are lifting equipment, clamping equipment and buckle equipment, is one of the earliest domestic enterprises engaged in oil drilling and production wellhead equipment production and sales. The company's products are used in almost all the major onshore and offshore oil and gas fields in China, as well as in the Middle East, Africa, North America, Central and South America, Russia and other major oil-producing regions in the world. Customers include Petrochina Company Limited, China Petroleum & Chemical Corp, CNOOC three major oil companies under the domestic major petroleum engineering and technical service enterprises. From 2013 to 2015, the operating income of the company was 304 million yuan, 308 million yuan and 245 million yuan respectively, and the net profit belonging to the parent company was 80.74 million yuan, 81.3 million yuan and 62.89 million yuan respectively.
The acceleration of unconventional oil and gas development drives the company's performance growth.
The company's equipment is greatly affected by oil and gas price fluctuations. In recent years, due to the continuous downturn of international oil prices, the activity of oil and gas exploration and development has decreased, and the company's performance has continued to decline. In the future, with the advance of natural gas pipeline construction, the development of conventional and unconventional natural gas (shale gas) will be accelerated. Shale gas belongs to independent mining rights and is not controlled by three barrels of oil. Under the background of insufficient supply of natural gas, as long as shale gas has economic value for development, private enterprises will develop it. According to the national plan, shale gas production is 6.5 billion cubic meters in 2015 and 30 billion cubic meters in 2020. The realistic condition is that the development progress lags far behind, so the shale gas development will grow very fast in the future, which will lead to the growth of the company's equipment revenue.
Fund-raising projects focus on the main business and enhance the core competitiveness
The total amount of funds raised in this issue is 348 million yuan, which will be used for oil drilling and production lifting equipment construction projects, oil drilling and production clamping equipment construction projects, oil drilling and production buckle equipment construction projects and oil drilling and production R & D center construction projects after deducting the issuance expenses. After the fund-raising project reaches production, it will form 10150 sets of drilling and production lifting equipment / year, 5830 sets of clamping equipment / year, and 1930 sets of buckle equipment / year production capacity, which will help to optimize the product structure and improve the company's profitability.
Purchase proposal
It is estimated that the diluted EPS of the company from 2016 to 2018 is 0.354 yuan, 0.422 yuan and 0.504 yuan respectively, and the corresponding PE of the issue price is 19.33,16.20 and 13.56 times.