[Chinalco.com] Auyang Shunchang is a major metal logistics service provider for the IT industry in the Yangtze River Delta Region. The company mainly provides integrated metal logistics services such as procurement, warehousing, nesting, packaging and distribution of steel sheet and aluminum alloy sheet for IT manufacturing. The Yangtze River Delta region is the main continuation of the global IT manufacturing industry. The IT industry above designated size accounts for 38% of total sales revenue in the country. The company's market share of IT specialty metal logistics in the Yangtze River Delta region is approximately 10.63%. Tape measure is a commonly used tool in daily life, and it is one of the necessary tools for the family. Luban ruler, Feng Shui ruler, and Wen Gong ruler are also Steel tape measures. Steel tape measure is a common tool for construction and decoration. Rubber Tape Measure,30M Metal Tape Measure,Rubber Measuring Tape,Best Steel Tape Measure Yucheng tengxu Measuring Tool Co., Ltd , https://www.hardwaretoolstape.com
The increase in production capacity + outreach expansion has promoted the steady growth of the company's main business. The active purchase and distribution of metal materials is the company's core profit model. Due to the need to bear the risk of substrate, inventory and customer credit risk, the gross profit rate is higher than the entrusted logistics distribution model. The company has 128,000 tons of steel plate and 25,000 tons of aluminum plate cutting capacity. In 2010, the revenue and gross profit of the metal logistics distribution business accounted for 94% and 68% of the company's total revenue and total gross profit, respectively. 2011-2012 steel plate capacity expansion 37%, 43%, aluminum plate capacity expansion 56%, 61%, industry integration opportunities caused by low market concentration, cross-industry expansion caused by the strong versatility of metal logistics, will drive the company for the next three years Sets and distributions continue to maintain rapid growth.
Diversification has opened up long-term growth space, but it has not constituted substantive benefits. The Company’s demand for microfinance business is strong, but due to capital increase and financing restrictions, the expansion of asset size can only rely on endogenous financing.
The two companies invested by the venture capital business of the company have better qualifications and strong profitability, but there are still uncertainties about whether they can be listed. LED project investment is huge, and there are great risks in the process of price decline of LED products. We cannot judge whether the company can obtain cost leadership advantage in the competition.
Give a "recommended" rating for the first time. With the launch of new production capacity and the enhancement of the company's industry integration and cross-industry expansion, the company's main business will continue to maintain rapid growth. We expect the company's diluted EPS after the 2011-2013 period to be 0.31, 0.37 and 0.40 yuan respectively, corresponding to 25, 21 and 19 times that of PE respectively, which is slightly lower than the 26 times average PE of the logistics industry in 2011. Due to the fact that the company's microfinance business is still surviving capital increase and financing restrictions, there are still uncertainties about the availability of venture capital projects, LED projects have not yet been put into production, and there is a relatively large price risk, we cannot yet give the company a higher valuation.
The current stock price of the company is in line with its intrinsic value. It has given a "recommended" rating for the first time, waiting for substantial progress in the company's microfinance business, venture capital project and LED project.
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