Events:
The company announced that it recently received SGS United Kingdom Ltd. The issued international railway industry standard (International Railway Industry Standard, referred to as "IRIS") certification certificate and ISO9001:2008 quality management system certification certificate, and the track brake design, development and manufacturing management system involved in the company's business have been audited and meet the requirements of international railway industry standards.
Comments:
Obtained IRIS international certification, laying a solid foundation for high-speed rail brake pads production. After obtaining CRCC certification at the beginning of the year, the company's high-speed rail brake pads were certified by IRIS again. The IRIS certification obtained by the company is a necessary condition for the company to realize the loading test of brake pads for high-speed rail. at the same time, it also indicates that the design, development and manufacturing capacity of brake pads for high-speed rail has reached the IRIS standards for manufacturing and quality management of the product. It has laid a solid foundation for promoting the loading examination test of the company's high-speed train brake pads, large-scale production, and the development of domestic and foreign markets after the products are put into production.
At present, the company's high-speed train brake pads are in the stage of preparing for product loading test, and the company is also actively contacting the manufacturers of the loading test to realize the mass production of high-speed rail brake pads. We expect the company to achieve mass production of high-speed rail brake pads by mid-2017. it is conservatively estimated that the company will get a market share of 5000-10000 brake pads in the first year of entering the high-speed rail brake pad market, corresponding to an income of 3500-70 million yuan. the company is expected to gain about 20% of the domestic high-speed rail brake pads market share, the development prospect is very broad, and will also become a new profit growth point for the company in the future.
Affected by the improvement of domestic real estate demand, the performance inflection point began to show that with the continuous improvement of the real estate market after the Spring Festival, it has greatly driven the market demand for the company's diamond tools; at the same time, in recent years, the company has also actively expanded its product structure to high-end tools, thus enhancing the added value of its products. In addition, judging from the company's operating performance in the first quarter, the performance is expected to reverse this year. In the first quarter, the company achieved operating income of 116 million yuan, an increase of 14.14% over the same period last year; after deducting non-profit, the net profit of shareholders of listed companies was 2.2278 million yuan, an increase of 93.53% over the same period last year, far higher than the level of the same period last year, and the improvement in performance is worth looking forward to.
Profit forecast and investment advice
The company has obtained the certification of IRIS system, which has realized the necessary conditions for the loading test of high-speed rail brake pads, and laid a solid foundation for the mass production of high-speed rail brake pads and the development of domestic and foreign markets in the future.
At the same time, the company's traditional main business has also stabilized and rebounded, driven by a rebound in the real estate market, and is expected to achieve a reversal in performance this year. As a result, we continue to maintain our "buy" rating and expect the company to achieve EPS of 0.09,0.15 and 0.26 yuan per share in 2016.