Rongsheng Petrochemical Landed On Small Plates In November 2Nd

CITIC believes that the company is the sixth largest polyester polyester production enterprise in the country, with a market share of 2.24%. With the gradual growth of the company's investment and output projects, the output has been rising continuously, and the industry boom cycle has improved the profitability of the company.

It is estimated that the opening price will be 70-85 yuan on the first day of listing.

Guo Yuan Securities believes that with the global

Company fundamentals is a large direct spinning polyester filament production company in China, mainly engaged in PTA,

First day positioning forecast

Donghai securities 47.7-56.4

Capital Securities 52.0-65.0

Guotai Junan 67.0-76.0

Guo Yuan Securities 49.4-53.8

Shanghai securities 54.4-65.2

CITIC investment 70.0-85.0

Guo Yuan Securities: Rongsheng Petrochemical reasonable value interval in 49.4-53.8 yuan

Rongsheng Formosa Petrochemical Co is the sixth largest polyester polyester manufacturer in China.

With the gradual pfer of global PTA capacity to China, the industry will continue to maintain rapid growth in the future.

The investment projects will lay the foundation for the future development of the company.

The company's IPO investment fund is mainly used for Yanda Shenghua 1 million 200 thousand tons PTA project and Shengyuan chemical fiber 100 thousand tons environmental health multifunctional fiber technology pformation project.

The main business revenue of the company in the next 2010-2012 years will be 151, 172 and 19 billion 800 million yuan respectively. The net profit attributable to the parent company is 12, 13.1 and 1 billion 460 million yuan, respectively. The share capital diluted EPS per share is 2.15, 2.36 and 2.62 yuan respectively.

According to the relative valuation, it is considered that the PE valuation of 35 times 2009 and 25 times 2010 is reasonable, and the corresponding reasonable valuation range is 49.40-53.80 yuan / share.

CITIC construction investment: Rongsheng Petrochemical reasonable value interval of 70-85 yuan

The company is the sixth largest polyester polyester manufacturer in China, with a market share of 2.24%.

Polyester is a high molecular compound produced by esterification and polycondensation of purified terephthalic acid and ethylene glycol.

In 2003, in the global fiber consumption structure, polyester fiber ratio reached 38.26%, exceeding cotton for the first time, becoming the largest fiber variety.

With the gradual growth of the company's investment and investment projects and the continuous increase of output, the PTA industry's prosperity cycle will enhance the profitability of the company.

It is estimated that earnings per share in 10, 11, and 12 years will be 2.27, 2.68 and 2.78 yuan, corresponding to 25-30 times earnings ratio of 10 years. The proposed inquiry interval is 56.75-68.1 yuan, and the opening price of the first day of listing is expected to be 70-85 yuan.

Zhongyuan Securities: Rongsheng Petrochemical reasonable value interval in 44.2-55.25 yuan

The company's main business is PTA- polyester polyester industrial chain. As of the end of 2009, the company has formed the annual design and production capacity of 600 thousand tons polyester, polyester spinning (FDY, POY) 570 thousand tons, polyester terylene DTY (DTY) 250 thousand tons; at the same time, it has the design and production capacity of 1 million 200 thousand tons and 1 million 60 thousand tons PTA per year respectively through the holding subsidiary company Yisheng and shares company Zhejiang Yisheng.

In 2010 1-6, the company realized an income of 7 billion 57 million yuan and a net profit of 575 million yuan.

According to the total share capital of 556 million shares issued after the calculation, the company's earnings per share in 2010 were 2.21 yuan, and the earnings per share in 2011 were 2.43 yuan, the reasonable valuation interval was 20-25 times, the corresponding value range was 44.20 yuan --55.25 yuan.

Analysis of the competitive advantage of the company

With the growth of the textile and garment industry, differentiated and functional polyester fibers are expected to generate a new round of demand growth and drive the polyester polyester market to enter a sustainable development stage. As a leading enterprise in the industry, the company will undoubtedly benefit from it. The company's fundraising will be used for the development and construction of two projects of PTA, environmental health and multi-functional fiber. After the implementation of the project, the company will improve its product structure and further develop differentiated fiber (environmental health and multifunctional fiber) varieties on the basis of consolidating the integration advantages of polyester polyester variety. At the same time, the company's industrial chain extends to the upstream raw material industry (PTA), thereby strengthening the overall competitiveness of the industry chain, and further expanding the leading edge of the company in the industry. The company is a large polyester filament manufacturer in the whole country.