The Armament Group invested a lot of money to support it, stripped off the assets at a loss, and turned losses into profits.
The losses in 2012 and 2013 mainly came from the new energy industry. The Armament Group invested 4.6 billion yuan to support the company through equity transfer, private placement and asset exchange. The company has stripped off its non-main business assets and returned to the main business of power transmission and transformation, with a net profit of 68 million yuan in 2014 and a positive net asset.
UHV explosive growth benefits leading enterprises
The approval of "two-traffic and five-direct" UHV lines is expected to be completed in 2015, an explosive growth over 2014. As a leading enterprise in the transformer manufacturing industry, the company is the main supplier of UHV AC transformer, UHV converter transformer and UHV high reactance. It has a stable market share and is expected to obtain 4.7 billion UHV orders, corresponding to a gross profit of 1.3 billion yuan, with great flexibility.
Nuclear power restart brings new growth opportunities
2015 nuclear power restart, the proposed approval of units this year will exceed expectations, the later inland nuclear power restart will lead to more rapid growth of nuclear power. The company has profound technical accumulation and significant first-mover advantages in nuclear power plant transformers, with a market share of up to 70%, and will fully benefit from this "emerging" market.
The profitability of traditional power transmission and transformation business is enhanced.
The bid-winning share increased steadily, and the bid-winning capacity of the national network increased by 115% compared with the same period last year, ranking first in a single factory. The product structure has been adjusted, and the proportion of high-end products with high gross margin has increased significantly. The efficiency of the company's operation and management continues to improve, and there is room for a substantial decline in the expense rate.
Follow-up or asset injection may still be possible.
The controlling shareholder may then inject other power transmission and transformation assets into the listed company to integrate superior resources. At the same time, the company may expand the secondary equipment market.
Profit forecast and investment suggestion
It is estimated that the EPS of the company in 2015, 16 and 17 is 0.28,0.53,0.69 yuan respectively, and the PE is 35,18,14 times. It is the first time to give a "buy" rating, with a target price of 14 yuan.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
Comment(0)
Reason For Report