Main points of the report
Event description
Baoding heavy Industry announced that its ASTM A517 Grade Q Modified semicircular plate product test has been approved by the American Classification Society.
Event comment
The semicircular plate product test has been approved by the American Classification Society, which is helpful to open up the foreign market of offshore platform products. The semicircular plate is mainly used for the pile leg structure of the Jack-up drilling platform (the pile leg unit is an important part of the lifting system, which can support the hull on the water surface for water drilling operations and adjust the height according to the regional conditions.) The product is characterized by low carbon and high strength, low temperature resistance and strong corrosion resistance. At present, only a few domestic enterprises have production technology and capacity, which is one of the key new products developed by the company and has great potential for development. There are full orders for marine castings and forgings, and the volume of new products is gradually expanding. It is expected that the performance will increase significantly in the next three years. The substantial improvement in performance is mainly due to two aspects:
A) orders for ship castings and forgings have rebounded and the current production state is relatively saturated
B) finishing and new product development. Its semicircular plate products have been approved by the factory of China Classification Society and certified by American Classification Society. Follow-up orders are worth looking forward to, and marine products are expected to become the main growth pole in the next few years.
The steady progress of epitaxial expansion will help to smooth the strong cycle and asset characteristics of the casting and forging industry, and create new performance growth points.
Performance forecast and investment suggestions: the investment project "Annual finishing 20000 tons large casting and Forgings Construction Project" was officially completed in March this year, resulting in a substantial increase in depreciation costs and difficulties in fully reflecting efficiency at the initial stage of the new project, restricting the rebound in net profit in 2014.
It is estimated that the sales income in 2014-15 is about 4.5 yuan and 750 million yuan respectively, the net profit belonging to the parent company is about 0.3 yuan and 90 million yuan respectively, the EPS is about 0.1,0.3 yuan per share, and the corresponding PE is about 68 and 23 times respectively. At present, the market capitalization is only 2 billion yuan, which has more room for expansion and maintains the "recommendation".
Risk hint
The progress of the profit contribution of the fund-raising project is lower than expected? The speed of epitaxial expansion is lower than expected.
