Recently, we went to the company for field research, communicated with the management on the company's development and future development potential, and visited the company's production site.
Main points of investment:
The company is one of the professional suppliers and service providers of coal equipment manufacturing industry in China.
The company's main business is supporting machinery, safety drilling rigs, tunneling equipment and transport machinery and other coal machinery research and development, manufacturing, sales and services. The company is the deputy director of the coal mine support professional committee of the China Coal Industry Association and the member of the shaft equipment branch of the Coal Industry Coal Mine Special equipment Standardization Technical Committee. the company has a total of 82 patents, including 4 invention patents. The company has a high investment in technology, accounting for more than 6% of sales income for several years in a row. In terms of management, the company effectively combines ERP and PLM management systems and is in a dominant position in the field of coal machinery.
The company's overall performance is sound in the near future.
The company's main business grew 33.47% in the first three quarters compared with the same period last year, including 11.85% in the third quarter. The company expects full-year net profit to grow by 10-30 per cent year-on-year (excluding the impact of 20.54 million yuan in share payments in 2011).
The company's leading products are supporting machines and tools, including bolting machines, bolting cars and supporting tools, which can provide complete sets of equipment and services for coal mine bolting construction to meet the needs of various construction environments. The corresponding income of the company's supporting equipment accounted for 60% of the main income in 2011, and the corresponding gross profit margin was as high as 67%. The market share of the company's supporting machinery accounts for more than 30% of the country.
However, since the second quarter of 2012, China's coal prices have continued to decline, affecting the rise in demand for coal equipment. The company's supporting equipment revenue declined slightly in the first three quarters.
The full casting middle groove produced by the company is facing the opportunity of market explosion.
The full-cast non-welding middle groove produced by the company adopts self-developed wear-resistant alloy, which reduces the energy consumption, improves the comprehensive mechanical properties and prolongs the service life of the middle groove. The company started the corresponding technology in 2007, and its products are mature at the end of 2009. The company's corresponding sales revenue in 2010 is more than 20 million yuan, in 2011, the corresponding income is nearly 40 million yuan, and the plan for 2012 is 70 million yuan. The annual revenue is expected to exceed the target.
As the middle slot accounts for 70% of the total cost of the scraper transporter and is an consumable product, the corresponding market scale is more than 10 billion yuan. The company is expected to maintain a growth rate of about 60% in the next few years.
Profit forecast.
The company belongs to the coal machinery industry market segment leading enterprises, the company has certain characteristics in technology, management and other aspects, can ensure the steady development of the overall performance of the company. And the company's full-casting middle groove products have entered a period of rapid development, which will also provide a strong driving force for the company's performance growth. We expect the company's EPS in 2012,2013 and 2014 to be 0. 5% respectively. 41 yuan, 0. 56 yuan and 0.65 yuan, which are 29x, 22x and 18x respectively. We give the rating of "overholding" for the first time, with a target price of 15.12 yuan calculated at 27 times PE in 2013.
Risk hint.
If the market development effect of the company's full-casting middle groove products is weaker than expected, it will affect the future development space of the company.
