Logic one: strategic shareholding Changyuan, control the pricing power of traditional product market. In 2015, the company's strategy Changyuan Group finally promoted the in-depth strategic cooperation between the two sides through friendly negotiation. We believe that the company's strategic shareholding in Changyuan Group, on the one hand, holds the industry pricing power of heat-shrinkable pipe products, on the other hand, while improving the pricing power of products, the two companies can join hands against overseas competitors and jointly promote the development of high-end products. Enter into high-end fields such as national defense, military industry, aerospace and so on.
Logic 2: wind power operation brings stable cash flow, and the leading product wind power bus is expected to become standard in the industry. The company's fund-raising wind farm project is expected to enter the harvest period in the second half of 16 years, which will create stable medium-and long-term profits and cash flow for the company. After accumulating wind farm construction and operation experience, the company is expected to continue to expand the scale of operation. The leading wind power bus has been tested by CLP for two years, and will be introduced into domestic first-line wind power manufacturers to become standard in the industry in the future.
Logic 3: fire-resistant bus slot technology is the world's leading, is expected to rely on the upgrading of fire-resistant cable industry standards to be fully promoted. The company's superior product, fire-resistant bus slot, can withstand a temperature of more than 1000 ℃
Minutes, in the international leading level. With the upgrading of national and local fire resistance standards in the future, the company's products are expected to be promoted in an all-round way. The company takes the material as the core, extends the value chain, and is expected to continue to launch all kinds of products with excellent performance in the future, occupying the leader in the subdivision field.
Logic 4: the trinity of "formula output + intelligent manufacturing + irradiation service" comprehensively promotes the transformation and upgrading of the cable industry. In the irradiated wire industry, the company will make use of the advantages of materials, manufacturing and services to comprehensively promote the transformation and upgrading of the industry: the upstream formulation company mastering masterbatch formulation technology, the middle intelligent manufacturing link will develop an automatic production line based on MES system through the acquisition of Hualei Xuntuo, and in terms of downstream irradiation services, the company will cooperate with CGN strategic cooperation to provide irradiation services for small and medium-sized cable enterprises with the help of technological advantages. In the future, the company will comprehensively transform the industry service provider.
Cover for the first time, give a "buy" rating! We believe that the company's business layout is cooperative, and it will transform and upgrade to industry service providers with the help of materials and products in the future, and it is expected to open several times the market space from products to services. We are optimistic about the development trend of the company's medium-and long-term transformation, and it is estimated that the EPS from 2015 to 2017 will be 0.98, 0.28, 0.37 yuan, with a "buy" rating.
Risk hint: wind power business development is not as expected, industry service transformation is lower than expected.