This report is read as follows:

Thiel heavy Industry's traditional metallurgical equipment universal shaft business has entered a bottleneck period, or it will open up the company's growth space through intelligent industrial layout. For the first time, the "overweight" rating was given, with a target price of 17.8 yuan.

Main points of investment:

For the first time, the "overweight" rating was given, with a target price of 17.8 yuan. Thiel heavy Industry traditional metallurgical equipment universal shaft business has entered a bottleneck period, in recent years, actively around the intelligent industry for strategic layout, or through the intelligent industry to open up the company's growth space. It is estimated that the company's net profit for 15-17 years is 1113max 1297 / 13.42 million yuan (excluding extension mergers and acquisitions), and the corresponding EPS is 0.05Unix 0.06Unix 0.06 yuan respectively. The company's intelligent industry layout reserve for a long time, taking into account the development prospects of the intelligent industry and the subsequent extension layout to bring upward elasticity of performance, give the target price 17.8 yuan, "increase" rating.

Industrial layout lock intelligent, endogenesis and denotation at the same time, open up the future growth space. Thiel's traditional metallurgical equipment universal shaft business has entered a bottleneck period of development. In recent years, it has actively carried out strategic layout around the intelligent industry. ① participated in the establishment of the Aerospace Zijin military-civilian Integration Industrial Fund to reserve industrial resources. ② established Maanshan Intelligent Industrial Park to incubate projects and introduce talents. ③ 3D printing industrialization: the company has successively implemented 3D printing industrialization through cooperation with Academician Lu Bingheng of Shanghai Jiaotong University, holding Nanjing academy of materials and other measures; ④ robot field layout: established a company with Shanghai Jiaotong University to promote robot industrialization. We believe that the company may enter the landing period of intelligent industrial layout in 2016 after the initial stage of project reserve and resource layout of intelligent industry in recent years, which may focus on two aspects: ① industrial intelligence and service intelligence: endogenous and extension layout intelligent industry (including industrial intelligent systems, industrial robots, 3D printing, industrial software, and service robots, etc.) ② metallurgical equipment: actively extend to the design and service fields such as upstream or downstream of metallurgical equipment value chain.

Catalyst: the company's epitaxial intelligent industrial layout; winning the bid for metallurgical equipment universal shaft business project orders and so on.

Core risk: the progress of industrial layout is not as expected.