Main points of investment:
Rubber machinery market capacity is limited. The market share of main products can reach more than 50%, of which the market share of three-drum all-steel truck meridian molding machine is about 70%, and the domestic market share of special equipment for engineering radial tire can reach more than 90%, which is in an absolute monopoly position. But even so, the company's 2009 sales revenue at the peak of sales is only just over 600 million yuan, due to the limited capacity of the rubber machinery market. The impact of the 2008 financial crisis on the company began to show up on new orders in 2009, new orders basically stagnated in 2009, and sales declined in 2010. The export of the company was close to 300 million yuan in 2008, but only 100 million yuan in 2010, which shows that the growth space of the company's main tire equipment is limited.
Competition in the industry has intensified. However, due to the participation of some small enterprises, the company's main product molding machine is facing the pressure of price reduction. When the company's core product Sangu molding machine was first launched, because only 625 enterprises and other enterprises could do it, it could be sold to 6.3 million per unit at that time, but now it has dropped to about 5 million. The price reduction of the product will directly weaken the profitability of the company.
Restorative growth began in 2011. There has been a significant recovery in the new orders received by the Company Law since the second half of 2010. As companies generally take more than half a year from receiving orders to delivery, the company's delivery volume will have a relatively definite recovery growth in 2011, and the annual revenue growth is expected to exceed 20%. However, due to the rise in raw materials and labor costs, but product prices are under pressure, so the profit growth rate is less than 20%.
Actively looking for new growth points. The management of the company is also aware that the company's traditional business is gradually entering the growth bottleneck and is actively looking for new growth points. In 2007, the company undertook the production of transport fixtures for Airbus A320 aircraft. In 2009, it won the bid for the A350 aircraft transport fixture, and in February 2011, the Airbus A350 transport fixture has been certified by experts from Airbus and NFM of France. However, the company is not satisfied with only making transport fixtures for Airbus, the company wants to use the opportunity to provide Airbus with jigs to enter the production of jigs in Airbus's final assembly line.
Profit forecast and rating. We initially forecast that the EPS of the company from 2011 to 2013 is 0.53,0.58 and 0.64 yuan respectively, and the corresponding price-to-earnings ratio is 29 times, 26 times and 24 times respectively.
