Event

We have recently investigated giant ship shares and tracked some of the company's situation.

Comment

The company's traditional business as a whole will maintain steady growth, while there is no lack of bright spots. This year, the tire industry as a whole shows a decline in investment, the growth rate of the industry has declined compared with previous years, the company is expected to break through under this background, and the traditional business is expected to maintain growth this year. 1) in terms of the vulcanizing press industry, the characteristics of structural changes are more obvious, the decline in demand for low-end products and the rapid growth of demand for middle and high-end products show a diametrically opposite development trend. It is the general trend of the industry for hydraulic vulcanizing presses to replace mechanical presses, and there is a huge space for the development of products. The current domestic hydraulic permeability is only 20%, and the annual output is only about 2000 units, while the replacement demand for theoretical stock can reach more than 100,000 sets. Estimated at a unit price of one million, the industry renewal demand is expected to reach hundreds of billions. The company is currently the leader in the domestic hydraulic vulcanizing press industry, with a market share of more than 25% and a good foundation for industrialization, and is expected to fully benefit from the demand growth driven by product upgrading. At the same time, the company's production expansion is progressing smoothly, and the production capacity is expected to be completed on schedule, which will fully guarantee the rapid growth of orders. 2) the tire mold is expected to grow steadily, and the company's mold products are mainly carved technology, and its customers cover major tire manufacturers at home and abroad. Its growth performance is very steady after ten years on the market. Shows the company's competitiveness in product control, market development, industry accumulation and other aspects, we expect the company's business is still expected to maintain a steady growth trend.

Industry 4.0 industry layout thinking is clear, endogenesis + epitaxy to create industry benchmarking. 1) the company's expansion in the field of industrial 4.0 starts from intelligent equipment manufacturing to the absolute advantage of post-vulcanization automation assembly line system integration, and will improve the application of the overall automation solution in the tire industry in the future. including the improvement of pre-vulcanization automation process, logistics, warehousing and other links of solutions. At the same time, the company fully tapped the processing advantages of German Ogiso machine tools in the 3C industry, and gradually formed a 3C industry machining automation solution of machine tool machining center + robot loading and unloading, and has been recognized by XIAOMI accessories. it is expected to be able to obtain more orders from manufacturers in the Pearl River Delta region, where there is a broad market demand in the future. 2) in terms of extension, the company signed a strategic cooperation agreement with Silicon Valley Paradise to actively look for intelligent manufacturing and system integration targets related to Industrial 4.0, and the industry application has been gradually extended to other fields. According to the strategic layout of the company, we believe that the company will attach great importance to extension expansion opportunities, and related projects may be landed in the follow-up.

Guangdong Province promotes the machine replacement program, and the company is expected to fully benefit. Guangdong Province has vigorously implemented the machine replacement plan, and in March this year, it issued the three-year Action Plan for Guangdong's Industrial Transformation and upgrading (2015-2017), which proposed that Guangdong's industrial technological transformation investment will reach 943 billion yuan in the next three years. and promote more than 1950 industrial enterprises to carry out "machine replacement". As a pioneer of 4.0 industry in the province, the company is expected to benefit from policy subsidies and technical support, so as to enhance the company's intelligent manufacturing brand image and promote product sales.

Investment suggestion

We believe that as an industrial 4.0 target with good texture, clear layout and relative stagflation, the company will rely on endogenesis and epitaxy to open its growth space in the future, and the market attention is expected to gradually shift from the traditional main industry to the layout of emerging industries. the company may have a larger room for market value growth in the future, giving a "buy" rating of 28 yuan in 6 months.