Domestic exclusive private supplier of aluminum equipment for nuclear fuel processing. The company is one of the three major suppliers of aluminum alloy materials for special equipment for nuclear fuel processing in China, specializing in the research, development, production and sales of high-performance aluminum alloy materials and machined products. Mainly for nuclear fuel processing equipment to provide high-performance aluminum alloy materials and machined parts.
The technology comes from the northeast light alloy, the strength is excellent, and has a strong order expansion ability within the system. Both the chairman and the general manager of the company have many years of working experience in the Northeast Light Alloy Research and Development Center, among which Mr. Li Niankui, General Manager, was the deputy director of the Research and Development Center of Dongzhou Light Co., Ltd., and was hired as the national military supporting expert. In addition, the company has entered the expert database of the science and technology plan of the Ministry of Science and Technology; in addition, the company has established a good industry-university-research cooperation with a number of domestic universities and institutions, and achieved remarkable R & D results.
Close cooperation with China Nuclear Corporation has greatly benefited from the restart of nuclear power. First of all, the company's revenue in the field of nuclear power accounts for more than 80%, all of which come from the nuclear machinery and its supporting manufacturers in the member units of the China Nuclear Corporation; at the same time, it accounts for 40% of the relevant orders of the China Nuclear Group and is the only private supplier among the three suppliers. The other two are 621 and Northwest Aluminum, both of which are trump cards within the system.
The fund-raising project will be put into production soon, and the order matching logic is smooth. The company's fund-raising projects are aimed at the nuclear industry and other high-performance aluminum materials, and its production capacity will triple when it is put into production. The recent resumption of domestic nuclear power is expected to heat up, and the company's fund-raising projects have been completed by nearly 90%, which means that once orders increase, the company's capacity acceptance and performance will be very smooth.
We will continue to cut into the field of military and civilian service. At present, the company has the third-level secrecy qualification of military industry, and obtained the confidentiality qualification certificate of scientific research and production unit of national defense weapons and equipment in January 2015. at the same time, the company announced a non-fund-raising plan in July 2015, with a total investment of 45.08 million yuan. for aluminum alloy parts mechanical processing projects, the products will be mainly aimed at the nuclear industry and the military market.
Investment advice: buy-An investment rating, 6-month target price of 120 yuan. It is estimated that the company's EPS in 2016-218 will be 0.92,1.60,2.56 yuan respectively. Considering its strong growth and scarcity in nuclear power and military industry, the company will be given a 6-month target price of 120 yuan, corresponding to 2018 47x.
Risk tips: 1) the restart of nuclear power is not as expected; 2) the progress of civilian participation in the army is not as expected.