Zhejiang Chuan Hua Limited by Share Ltd belongs to the textile chemicals industry. Textile printing and dyeing industry The system integrator who provides integrated printing and dyeing solutions is a leading company in China's printing and dyeing auxiliaries industry and the first listed company in the industry. At present, the company Main business It mainly consists of three parts: dyeing auxiliaries, dyestuffs, leather chemical fiber oil agents and so on. The three business accounts for 42.3%, 31.4% and 26.3% respectively.

　　 The long-term and stable development of the textile industry has ensured the steady growth of the demand for textile chemicals in China. In addition, with the upgrading of domestic consumption and international trade, Green barrier It makes the comfort, health and environmental protection elements of textiles more and more popular, and brings new room for growth to the textile chemicals industry.

At present, the company has 130 thousand tons of printing and dyeing auxiliaries, 50 thousand tons of chemical fiber oil and 35 thousand tons of reactive dyes, with a market share of 8%, 27% and 18% respectively. In addition, in October 2010, the company's active dyestuff technical spanformation project was put into operation, and its capacity increased to 60 thousand tons. In June 2010, 50 thousand tons of chemical fiber oil additives and 30 thousand tons of silicone softeners will be put into operation in the 1 quarter and the 4 quarter of next year. Capacity expansion has laid the foundation for the company's future growth.

Over the past 20 years, the company has been focusing on the main textile chemicals industry, and actively promoted the extension of the industrial chain and the optimization of product structure, thus forming a "dyeing and aid integration" business mode to help textile and dyeing enterprises obtain excellent products. The operation mode of "integration of dyeing and aid" will help companies save sales resources, and on the other hand, it will continuously enhance the "Stickiness" of downstream customers to the company and enhance the competitiveness of the company in the field of textile chemicals.

According to the model, the EPS per share of the 2010-2012 companies is 0.71, 0.98 and 1.27 yuan / share respectively. Combined with the current overall valuation of the industry, we believe that the PE valuation given to the company 30 times in 2010 and 25 times in 2011 is more reasonable, corresponding to the reasonable stock price 21.3-24.5 yuan, giving the "recommended" investment rating.