Event
The company signed "supply contract of Heat shrinkable casing for K1 Cable Terminal of Unit 1 and Unit 2 of Zhangzhou Nuclear Power Plant" with China Nuclear Power Engineering Co., Ltd., totaling RMB 280 million; the wholly-owned subsidiary signed "supply Framework contract" and "2.5MW Conductive Rail (Tubular bus) Sale contract" with Xinjiang Goldwind Science & Technology, totaling RMB 2.1 million.
Brief comment
Many successful nuclear power projects, demonstrating the top strength of the industry.
The company won a total of 282 million yuan in "supply contract of K1 cable terminal heat-shrinkable casing of unit 1 and 2 of Zhangzhou Nuclear Power Plant", "supply frame contract" and "2.5MW conductive rail (tubular busbar) sales contract". It is another order in the nuclear power industry after Zhangzhou Nuclear Power Plant Unit 1 and Unit 2 K1 cable terminal heat shrinkable casing equipment project and Pakistan Karachi K-2/K-3 (Hualong No.1) nuclear power plant project. Aiming at Hualong No.1, the company independently developed 1E class K1 cable terminal heat-shrinkable casing products, which is the only manufacturer that has passed all the testing projects so far, and has been recognized by the industry.
Hualong-1 achieved a breakthrough in research and development and enjoyed the dividend of the third-generation nuclear power development. The first generator of the "Hualong-1" nuclear power project passed the "type test" on the 6th in Dongfang Motor Co., Ltd., marking the successful independent development of the first generator of China's "Hualong-1" and another leap in the independent design and manufacturing capacity of Hualong-1. Hualong No.1 has become the main stack type of the third generation in our country at present. However, China has basically not approved new nuclear power projects in about two years, mainly because the development of the third-generation reactor technology is slow, and it has been difficult to choose the third-generation reactor type for the new approval project, so there has been no approval for the new project for two years. The goal of nuclear television in the 13th five-year Plan is far from being achieved, and there is still a lot of room for development at the coastal site of nuclear power. With the third-generation reactor power generation imminent, nuclear power orders are about to usher in a new round of explosion. Follow-up nuclear power project approval Hualong 1 will become the main reactor type of the third generation in China, the company's market is huge, the company will enjoy the market dividend.
Strong scientific research strength and independent intellectual property rights
The company has 515 authorized patents and is a national high-tech enterprise. The company is committed to the research and development of new materials, new products and the improvement of new processes, and participates in a number of major innovation projects.
And control the cost, start with the raw materials of the product industry chain, improve the product quality and reduce the product cost. Through wind power projects, enhance the ability of innovation, extend the industrial chain, enhance the overall competitiveness.
It is estimated that the company's EPS in 2017-19 will be 0.14,0.20,0.25 yuan respectively, and the corresponding PE will be 48,34,27 times respectively, maintaining a "neutral" rating with a target price of 8.30 yuan.
Risk Tips:
(1) the restart of nuclear power is not as expected; (2) the progress or income of the project is not as expected; (3) the investment is not as expected.