The company is a professional enterprise dedicated to the comprehensive development and application of balanced technology. The main business is the development, design, production and sale of fully automatic balancing machines. We have developed and designed more than 40 types and specifications of fully automatic balancing machines.

The company's capacity utilization rate and production and sales rate have maintained a high level, and have increased year by year, and the main operating income is stable.

From 2013 to 2015, the company's revenue was 907.556 million yuan, 98.2044 million yuan, and 97.8964 million yuan respectively. From 2013 to 2015, the company's production capacity remained unchanged, at 350 units/year, and the capacity utilization rate declined, and overall it remained high at over 83%.

The fully automatic balancing machine industry has broad prospects, and downstream demand is expanding market capacity. The rapid development of China's motor industry and automobile manufacturing industry has provided broad development space and market capacity for the development of the fully automatic balancing machine industry. The development of the motor industry and automobile manufacturing enterprises, and the actual demand for fully automatic balancing machines, led to the rapid release of their market.

The reasonable valuation range is 17.75 to 21.30 yuan/share. We forecast that the company's EPS from 2016 to 2018 will be 0.71, 0.89, and 1.12 yuan respectively, with year-on-year increases of 12.8%, 26.5%, and 25.8%, respectively. Considering the future demand for the company's products and the company's competitiveness, we think it is more reasonable to give the company 25 to 30 times PE in 2016. The reasonable stock price is 17.75 to 21.30 yuan.

Risk warning: the risk of increased competition or malicious competition in the fully automatic balancing machine market; the risk of further decline in gross margin; the risk of cyclical fluctuations in the industry; the risk of industry substitution, product upgrading and technological innovation; risk of technology loss; risk of accounts receivable not being recovered.