Summary of the report:
Domestic supplier of aluminum equipment for nuclear fuel processing. The company is in the non-ferrous metal Calendering industry, which belongs to the field of new material technology and new energy and energy saving technology respectively; the company's main products are aluminum alloy forgings, extruded parts and machined parts, which have the characteristics of high strength, high toughness, corrosion resistance and high technical content and economic added value, which can be widely used in nuclear energy, aviation, aerospace, military industry, electronics, transportation, machinery and equipment manufacturing and other industries. The company mainly provides high-performance aluminum alloy materials and machined parts for nuclear fuel processing equipment.
The future development of the industry is huge, and the company has the advantage of first-in in the industry. As an important R & D supporting unit in the field of nuclear fuel processing equipment, the company has high entry barriers and technical barriers in the field, so it is difficult for aluminum processing enterprises outside the subdivision industry to become qualified suppliers in this field. therefore, compared with the enterprises outside the subdivision industry, the company has a strong industry first-in advantage. In addition, in recent years, China's aluminum processing industry will continue to maintain the growth trend. The actual output of aluminum processing materials in China in 2016 was about 33 million tons, an increase of 10 per cent over 2015. According to the 13th five-year Plan for the Development of Nonferrous Metals Industry of the Ministry of Industry and Information Technology, it is estimated that the output of aluminum products of 40 million tons in 2020 will maintain an average annual compound growth rate of 5.92% from 2016 to 2020. The steady growth of the aluminum processing industry provides a good opportunity for the company to expand its business.
Performance forecast and valuation. Nuclear power will mainly enter a new period of demand growth in the next few years, and the non-nuclear business will open up more market space. It is estimated that the company's income from 2017 to 2019 will be 205 million, 308 million and 419 million respectively, and its net profit will be 23 million, 37 million and 52 million respectively. The corresponding EPS is 0.26,0.41,0.57 yuan, and the corresponding PE is 34 times, 28 times and 22 times respectively. For the first time, it is recommended to give a "highly recommended" rating.
Risk hint. Customer concentration risk; nuclear power industry policy change risk; raw material price fluctuation risk.