The company's core customers are the world's top auto parts manufacturers such as Valeo, Bosch and Magna, as well as leading motorcycle manufacturers such as Honda, Suzuki, Yamaha and Changjiang. Among them, the supply matching coefficients of Valeo and Bosch reached 30% and 10% respectively, making them the second largest suppliers, second only to Schaeffler, the world's largest manufacturer of needle roller bearings.
The company has obvious first-Mover advantage in the same industry in China. Since 2002, the company has entered the global mainframe market procurement system of Valeo, the world's major starter manufacturer, and used this as an opportunity to increase market development for other international auto parts giants. At present, the company is the only enterprise in the domestic needle bearing industry that has entered the global procurement system of international accessories.
The company has outstanding technical research and development capabilities. The company independently developed multi-sealed bearings and mastered the original heat treatment process, which greatly improved the product life and reliability and effectively reduced the cost, making its needle roller bearings comparable to those of Schaeffler, the leading enterprise of needle roller bearings in the world. In addition, compared with the overall positioning of the bearing industry in China, the company's needle bearings are positioned in the middle and high end, and the gross profit margin of products is stable at around 45%, far higher than the industry average of 25%, with strong profitability.
Due to the strong downstream demand, the company's capacity utilization rate has exceeded 100% in recent four years. In 20 10, the order fulfillment rates of needle bearing and overrunning clutch were only 79.5% and 84%, respectively, and capacity expansion was imminent. The funds raised by the company are mainly used for the development and construction of precision needle bearing and unidirectional bearing assembly projects. After the project is completed, the annual production capacity of 50 million sets of precision needle roller bearings, 3 million sets of overrunning clutches and 6,543.8+0,000 sets of OAP (one-way pulley assembly) will be increased. The fundraising project will effectively solve the company's current capacity bottleneck pressure, and OAP products will fill the gap of domestic "OAP products with independent intellectual property rights" in the international host market and become a new profit growth point for the company.
Earnings forecast and valuation: Based on the total issued share capital of 87 million shares, we expect the diluted earnings per share of the company 10 to 12 to be 0.4 1 yuan, 0.66 yuan and 0.88 yuan respectively. 1 1 year and 12 year, the company's net profit growth rate reached 60.9% and 33.3% respectively. Combined with the valuation of comparable companies in the same industry, we give the company 20 1 1 year 29-33 times PE, and the reasonable value range is 19.6438+04.