Main points of investment

1. The traditional main business hit bottom and rebounded, and orders for computerized flat knitting machines grew faster than expected. Renewal demand led to higher-than-expected growth in orders for computerized flat knitting machines. The natural renewal life of computerized flat knitting machine is 8-10 years. At present, there is 50-600000 stock in the market. China's computerized flat knitting machine market is growing rapidly in 2008-2011, and the natural renewal cycle is 2016-2019. Computerized flat knitting machine orders are full, scheduled to the end of April, the shortage of upstream spare parts has become the main factor affecting production capacity.

two。 Under the background of the establishment of the popular trend of flying weaving shoes and the upgrading of consumption, more and more second-line sports shoes brands begin to promote full knitted uppers, driving the explosive growth of the company's vamp machines.

The flying knitted shoes with knitted uppers lead the trend, and the company's vamp machines are growing explosively. Adi Nike launched flying knitting shoes in 2012, which was popular last year, and many second-tier brands also began to use knitted uppers, driving the explosive growth of the company's vamp machines.

3. Robot automation business and Internet business are progressing smoothly.

The company's holding robot automation companies Dongguan Zhongtian and Suzhou Dingna are currently running smoothly with full orders and are expected to contribute about 20 million this year.

It is expected that most of the Internet companies acquired last year will fulfill their promised results with Le and YouTou Technologies, contributing 105 million of their profits this year.

4. Investment advice:

The company is expected to achieve net profit of 130 million, 330 million, 427 million in 16-18 years, corresponding to EPS0.16, 0.41,0.53, and PE72X, 28X, 22X, which are highly recommended.

5. Risk Tips:

The persistence of the order is not as expected.