Main points of investment
The market space of highway maintenance is huge, and the degree of marketization is improved to release business opportunities. The total length of expressway in China is 120000 kilometers, ranking first in the world. The total length of highway network is second only to the United States, and the annual expenditure on highway maintenance is more than 300 billion yuan. The degree of marketization of highway maintenance is low, and the technology is backward. If it is gradually opened up in the future, it will bring huge business opportunities.
Yingda highway maintenance technology is the leading country, equipment market share first. Yingda highway recycling technology has a unique "geothermal recycling technology", compared with the traditional manual restoration, not only high efficiency, good repair quality, but also can realize the recycling of asphalt materials. The company has a number of excellent past performance.
Innovative franchisee model, equipment sales continued to develop during the year. The company has developed 12 franchised dealers all over the country. based on the huge demand for maintenance machinery in the domestic market and the dominant position of the company's maintenance equipment, we believe that this sales model will continue to develop this year, and equipment sales are expected to increase rapidly.
Holding highway maintenance company, testing water service market. The company, through its holding subsidiary Yingda Intelligent, holds a 55% stake in Tianjin Expressway maintenance Company and directly participates in the front-line link of the highway maintenance market. At present, the company is gradually increasing the utilization rate of its own equipment in Tianjin Expressway maintenance Company, in order to improve efficiency. If the business model is verified, it will play a good exemplary role for the company to further expand its domestic highway maintenance business.
Investment advice: the company's static PE15.4 in 2015, in view of its leading position in technology and the huge potential of the domestic highway maintenance market, it is recommended to pay attention to its follow-up progress.
Risk hint: the opening process of the highway maintenance market is lower than expected, the competition in the maintenance market deteriorates, and the RMB depreciates.