The company focuses on the development, manufacture and sales of heavy machine tools, CNC machine tools, gears (boxes), food machinery, elevator accessories and other mechanical products. The machine tool business has always been the mainstay of the company, accounting for more than 50% of the company's revenue and profits. The company has the most profound history of technology and experience in the field of subdivision, and is in a dominant position in China. Among them, Qinghai heavy-duty horizontal lathe series products, railway special machine tool series products, roll lathe series products, and Qinghai No.1 machine horizontal machining center series products are the company's leading products.
The development of China's advanced equipment manufacturing industry ultimately depends on the support of the civilian machine tool industry, and the national machine tool industry will also fully enjoy the huge demand cake of the machine tool market. Since the financial crisis, China's machine tool market demand has undergone some major changes, the demand for ordinary machine tools has decreased significantly, but the demand for heavy and high-grade machine tools is relatively stable. Once the market confidence is restored, the demand for heavy-duty and high-grade machine tools in the international and domestic markets, especially China's heavy-duty and high-grade machine tools, will continue to grow in the next five years.
As a forerunner and leader in the field of heavy-duty and high-grade machine tools, the CNC heavy-duty horizontal lathe horizontal machining center products produced by the company are unique. It is widely used in aerospace, heavy motor, heavy machinery, metallurgy, power generation, shipbuilding, chemical industry and national defense military industry and other national key development fields, the future development space is very broad.
We believe that, on the basis of profound technology and experience accumulation, fully grasp the market opportunities with strong demand for heavy and high-grade machine tools in the future, and implement the strategy of "going out" is the inevitable choice of the company. in-depth cooperation with enterprises in the industry, the acquisition of non-provincial and even foreign enterprises is a very good way.
According to the current situation and development trend of the company's industry, the company's dominant position in the subdivision field and the rapid release of production capacity brought by the fund-raising projects, we estimate that the company can achieve basic earnings per share of 0.18 yuan, 0.28 yuan and 0.40 yuan in 2009, 10 and 11 years, the reasonable share price of the company is around 9 yuan, and the valuation ceiling can reach 12.29 yuan. The company's current share price is 6.33 yuan, which has 42% room to rise with the target price of 9 yuan, and its rating is upgraded to "buy".
