Benefit from the Power Construction Investment Suite and High Speed ​​Bearings are expected to become performance flashpoints

The leading manufacturer of thick-walled plain bearings has established a leading position in China. The company is the earliest domestic supplier of thick-walled plain bearings and subassemblies. The products are widely used in large and medium-sized motors, large-scale mechanical equipment, and large-scale power generation equipment. The company's thick-walled plain bearings and parts kits involve six series and more than 200 kinds of specifications. The sales scale ranks in the forefront of the market among its own brands, and the domestic market share of thick-walled bearings reaches 4.95%. The company has also compiled and participated in the preparation of 10 countries. Standards and industry standards.

Benefit from the Ministry of Power Construction Investment Kit and high-speed bearings are expected to become a performance point of explosive thick-walled plain bearings Due to their strong bearing capacity, impact resistance and vibration, they are widely used in large and medium-sized motors, large-scale mechanical equipment, power generation equipment and other host equipment, and China's Electricity production and consumption are closely related. During the "12th Five-Year Plan" period, it is expected that China's electricity production and consumption will continue to maintain a growth rate of more than 10%. By then, the market size of thick-walled plain bearings will reach 4.2 billion yuan, and the scale of the mini-kit market will reach 3.8 billion yuan. With the completion of the project, the business will become a point of rapid growth of the company's future performance and it is expected to achieve a growth rate much higher than that of the bearing. In addition, the construction of the Second West-East Gas Pipeline Project will enable the next two years to become a major construction period for booster stations in the construction of domestic natural gas pipeline networks, which will generate concentrated demand for high-speed plain bearings, driven by a 25% localization rate of electrical equipment. , The company is expected to rely on existing customer resources and product cost advantage to enter the high-end product market, open the import substitution space for high-speed sliding bearings.

The increase in production capacity of raised investment projects led to a double increase in revenue size and profitability. The total share capital of the company prior to the issuance of A shares was 75 million shares, and 25 million shares were planned to be issued. The funds to be raised are intended to be invested in the “New projects for high-speed sliding bearing production lines” and “sliding” respectively. "Technical Transformation Project of Bearing Production Line" and "Technology R & D Center Project". After the project is put into production, it will add 2556 sets of sliding bearing capacity and 14,195 tons of production capacity for the part.

Customer resources guarantee stable growth Customized manufacturing model ensures gross profit The company has superior and stable customer resource advantages [2342.65 1.10%], leading technology and R&D advantages, complete product series advantages, and outstanding customized manufacturing capabilities. The company's customers are mainly domestic large-scale complete equipment leading enterprises and motor production enterprises, covering Shanghai Electric [6.56 1.23% shares bar research report] group, Harbin Electric Machinery Factory, Xiangtan Motor and other well-known domestic motor and power generation equipment manufacturing enterprises. Due to the low value of the value of the sliding bearing in the customer's product but its importance is high, the customer's sensitivity to quality is low and the sensitivity to price is low. Therefore, it has high viscosity, and the company supplies the sliding bearing to the main customer's sliding bearing. The proportion of purchases is around 50%, and the company's gross profit margin has been stable at a relatively high level.

Earnings Forecasts and Investment Suggestions The company's EPS for 2011-2013 is estimated to be 0.45 yuan, 0.70 yuan and 0.94 yuan respectively, and the net profit growth rate is 18.17%, 55.66% and 34.80% respectively. Considering the average valuation of the basic parts and components industry and the company's competitive advantage, the proposed inquiry range is 13.3-16.8 yuan, corresponding to a price-earnings ratio of 29.6-37.3 and 19-24 times for 2011 and 2012, respectively.

Suggested inquiry range:

13.30-16.80 yuan Basic information issued After the issuance of total capital stock, 10 million shares issued 25.5 million shares