On the morning of November 8th, Fujian Nanfang Road Machinery Co., Ltd. (or NFLG), the vice-chairman unit of China Aggregates Association, made an initial public offering of A shares and was listed on the Shanghai Stock Exchange. The price-earnings ratio is 18.37 times. As of 10:00 Beijing time, the new shares of NFLG rose 44% to 34.2 yuan per share.
One-stop full range of green building materials equipment
Form a whole industry chain and multi-level product system layout
Regarding the operation of the company's main business, Fang Kai, vice chairman of NFLG, said that the company has been focusing on the field of engineering mixing since its establishment, and has gradually formed a whole industry chain and multi-level product system layout, characterized by "primary aggregate processing equipment-engineering mixing equipment-aggregate resource Recycling treatment equipment", which can meet customers' purchasing needs of one-stop full series of green building materials equipment. The company's business integrates the customized design, research and development, production and sales of equipment such as engineering mixing, primary aggregate processing, and aggregate resource recycling, covering mine crushing and screening, aggregate processing, construction and road construction materials, construction waste recycling and other fields. The company's products are widely used in downstream markets such as construction, roads, bridges, tunnels, water conservancy and other infrastructure construction and real estate development.
The company has cooperated and established a stable cooperative relationship with China Railway (601390), China Guangdong Nuclear Power, China Communications Construction (601800), Beijing Construction Engineering, Ningbo Construction Engineering (601789), Nippon, JCDecaux, Kuikemei, Oriental Yuhong (002271) and other well-known domestic and foreign companies. The company has a high reputation in the industry, and its products have been successfully used in national strategic projects such as the Hong Kong-Zhuhai-Macao Bridge, the construction of the Shenzhen Greater Bay Area, the China Guangdong Nuclear Power Project, and the longest desert expressway (Beijing-Urumqi Expressway). Among them, the CGNPC nuclear power project entered the field of nuclear power projects on behalf of the domestic independent brand mixing plant; in the Hong Kong-Zhuhai-Macao Bridge project, the company's shaping sand making equipment was used in the aggregate production line required for bridge deck pavement, representing the industry's high-level aggregates processing technology.
Fang Kai introduced that the company's main products are focused on the preparation, use and regeneration of construction aggregates. NFLG constantly implements the concept of "from sand to construction, from sand to roads", taking technological innovation as the core competitiveness, targeting customers demand and industry development trends, and constantly carry out research on application technology, new products and new processes. After more than 20 years of technical accumulation and development, NFLG has gradually formed a "primary aggregate processing-engineering mixing - Aggregate resource recycling" multi-level product system of the whole industry chain of aggregates, covering equipment including mine crushing and screening, aggregate processing, construction and road construction materials mixing, construction waste recycling and other equipment. NFLG continues to develop and innovate in the integration of construction solid waste resources, environmentally friendly and intelligent mixing buildings, intelligent dry-mixed mortar production lines, and machine-made sand dry-mixed mortar mixing.
Market demand will continue to grow
Policies support the development of the industry
In response to issues such as industry development and favorable factors, Fang Qingxi, chairman of NFLG, said that the company belongs to a relatively important segment of the construction machinery industry. The industry of our company belongs to "special equipment manufacturing" (C35), and the sub-sectors are "specialized machinery manufacturing for building materials production" (C3515) and "specialized equipment manufacturing for environmental protection" (C3591). Downstream markets such as infrastructure construction and real estate in our country are developing steadily, and the output and demand of aggregates resources maintain a steady growth. Calculated only by the new mileage of high-speed rail, it is expected to bring about 2.5 billion tons of aggregates demand.
In terms of development of aggregate resource recycling and processing equipment, construction waste such as waste construction concrete can be used for recycling coarse and fine aggregates to produce concrete and mortar of corresponding strength grades, or to prepare building materials such as bricks, wall panels, floor tiles, etc., and by adding curing materials, it can be used for road construction, pile filling, foundation base. With the acceleration of urban construction and renovation and the acceleration of new urbanization in our country, solid waste pollution, including construction waste, has become increasingly serious. According to relevant data, from 2015 to 2020, the annual production of construction waste in our country increased from 2.074 billion tons to 3.039 billion tons, with an average annual compound growth rate of 7.94%.
With the increasing market demand for aggregates supply structure adjustment and sand source replacement, increasing the supply ratio of machine-made sand and recycled sand has become an inevitable trend in the aggregates processing industry, which has correspondingly increased the market's demand for sand making equipment and recycling equipment. Affected by the above factors, the market is expected to maintain the growth in demand for engineering mixing equipment and primary and recycled aggregate processing equipment.
In recent years, our country has promulgated a series of industrial policies that are beneficial to the development of the engineering mixing industry and the aggregate processing industry, providing strong support for the development of the industry. The national industrial policy provides a good external environment for the development of the industry, promotes the market development of various resource recycling and treatment equipment represented by the recycling of construction waste, helps to promote the technological progress of enterprises in the industry, and promotes enterprises to improve their independent innovation capabilities, to accelerate the optimization and upgrading of the industrial structure.
Raised funds of 551.2572 million yuan
Accelerate the construction of Xiantao production base and smart IoT system platform project
Regarding the use of the raised funds, Fang Qingxi said: After deducting the relevant issuance expenses, the funds raised by the company's public offering will be invested in the following projects in the order of priority: in the expansion of the Xiantao production base, the construction of the R&D center and the construction of the smart IoT system platform. The total investment in the project with the raised funds is expected to be 551.2572 million yuan, and the use of raised funds is 551.2572 million yuan.
The total investment of the Xiantao production base expansion and R&D center construction project is 351.4316 million yuan, which is divided into two sub-projects, production line construction project of the Xiantao production base and the technology research and development center construction project, with an investment of 267.7229 million yuan and 83.7087 million yuan respectively. Among them, the investment in the production line construction project of Xiantao production base is mainly used for building new workshops, purchasing equipment and other supporting equipment. After the project is put into production, it will have an annual production capacity of 210 sets of cement concrete mixing equipment, 80 sets of dry-mixed mortar mixing equipment, 10 sets of sand making equipment, and 3 sets of construction mixed waste recycling and processing lines, further improving the company's existing production capacity and processing efficiency, and better meet market demand and consolidate the company's market competitiveness.
The total investment of the smart IoT system platform construction project is 69.8256 million yuan, and the construction period is 24 months. This project is based on the company's self-developed IoT cloud platform to build a NFLG smart IoT system platform, using technologies such as the Internet of Things, big data, cloud computing, etc., to establish a digital operation and maintenance and service center, and based on the collection, analysis and application of relevant operational data, providing industrial application software and overall business process informatization solutions for the production and operation of aggregate and building materials manufacturers, and assist downstream customers to realize the value transition of IoT applications.
Brief introduction of NFLG
NFLG, as the vice-chairman unit of China Aggregates Association, is an enterprise in the field of high-end equipment manufacturing in China. Founded in 1997, since its establishment, it has been focusing on the field of engineering mixing, and has gradually formed a whole industrial chain and a multi-level product system layout of "primary aggregate processing equipment-engineering mixing equipment-aggregate recycling recycling equipment". It can meet the procurement needs of customers for one-stop full series of green building materials equipment. The company's business integrates customized design, research and development, production and sales of equipment such as engineering mixing, primary aggregate processing, and aggregate resource recycling. It covers the fields of mine crushing and screening, aggregate processing, construction and road construction material mixing, construction waste recycling and other fields. The company's products are widely used in downstream markets such as construction, roads, bridges, tunnels, water conservancy and other infrastructure construction and real estate development.
NFLG attaches great importance to R&D innovation and technology accumulation. It has a professional R&D team and a complete R&D system. It has been recognized as a high-tech enterprise, a leading enterprise of science and technology giants in Fujian Province, and a municipal-level key R&D demonstration enterprise in Quanzhou City. The enterprise engineering technology center was approved by the Ministry of Personnel of the People's Republic of China to establish a post-doctoral research station in 2006. As of June 30, 2022, the company has 22 software copyrights and 616 patents, including 61 invention patents. The company has presided over or participated in the drafting of 15 national and industry standards, and many products have won awards and honors such as "National Torch Program Project" and "National Key New Products".
NFLG adheres to the professional management strategy and international development strategy, promotes the level of digitalization and intelligence, realizes the deep integration of industrialization and informatization, and provides customers with overall solutions for building materials production and resource recycling in the field of engineering mixing. With high-quality products and services, the company has successively won the "Top 50 Chinese Construction Machinery Specialized Manufacturers", "Top 100 Global Construction Machinery Manufacturers", "2019 Top 10 Chinese Mixing Machinery Equipment Enterprises", "2019 China Ready Mixed Mortar", "The industry's most influential brand" and other titles. The company enjoys a high reputation in the industry, and its products have been successfully used in national strategic projects such as the Hong Kong-Zhuhai-Macao Bridge, the construction of the Shenzhen Greater Bay Area, the China Guangdong Nuclear Power Project, and the longest desert expressway.