Focus on mid-and high-end passenger car engines and gearbox precision aluminum casting products. In recent years, the company has become a first-class supplier and exclusive supplier of many series of products to large vehicle manufacturers at home and abroad, such as Ford, Dongfeng Honda, Dongfeng Honda engine, Changan Ford Mazda, Cummins, Guangzhou Automobile Group and so on. Other newly developed customers include BMW, Chrysler, Dongfeng Nissan and so on.
The transfer of the American automobile industry is the driving force for the company's continued growth. The company has been in close contact with Ford and General Motors Co in North America, and the transfer of US auto parts orders from overseas to China has brought a lot of new revenue to the company. The company maintains a long-term and stable cooperative relationship with domestic and foreign vehicle manufacturers. We predict that the company's automotive precision aluminum casting business will maintain a growth rate of about 30% in 2011, with the main business income exceeding 500 million yuan.
The lightweight trend provides a good and strong trend opportunity for the company. Complying with the development trend of automobile lightweight driven by energy saving and emission reduction, the proportion of products made of aluminum alloy and other lightweight materials has been gradually increased, and the scope of application has been gradually expanded. The amount of aluminum used in American, Japanese and European cars has reached about 150kg and will be further increased in the future. The amount of aluminum used for bicycles in China is close to 100kg, and the large space for development provides the company with a good market space.
The production capacity of the fund-raising project will be released ahead of schedule. During the 2010 IPO period, the company's production capacity was maintained at about 6000 tons / year, and the equipment utilization rate was about 100%. As the fund-raising project has been invested in construction with its own funds, the company's production capacity has reached about 8000 tons in the first quarter of 2011 and is expected to reach 10000 tons in the fourth quarter. The total production capacity of 6000 tons of fund-raising projects in 2012 will contribute more than 102 million yuan to the company's profit forecast: considering that the company's fund-raising projects are gradually put into production, we expect the company's operating income to grow by 30.28%, 38.47% and 30.00% respectively in 2011-2013, and the diluted EPS will be 0.84,1.12yuan and 1.45yuan respectively. Corresponding to PE30/23/18 times, we believe that the company will give a rating report after continuous attention in a reasonable valuation range.