Tianjin Saixiang Technology Co., Ltd. was founded in 1989. After more than 20 years of development, the company has become a high-tech enterprise integrating scientific research, development, production and trade, developing and manufacturing a series of radial tire production equipment for high-grade opto-mechatronics, such as engineering, load, passenger, aviation and so on. and develop industrial control software and tire enterprise management and control network information system for users. The company's technology center has become a national enterprise technology center, and set up a postdoctoral research workstation. In 2007, the company's "giant engineering radial tire equipment" won the first prize of national scientific and technological progress. At present, the company's main economic indicators rank first in the national rubber machinery industry, and the output value ranks fifth in the world rubber machinery industry.

Considering that the current natural rubber price is low, the overall gross profit level of the tire enterprise is relatively high, and the company's future revenue and profits will maintain rapid growth, according to our valuation model, the company's operating income can maintain a growth rate of about 30% from 2014 to 2016, achieving earnings per share of 0.29,0.35 and 0.41 yuan, with a dynamic P / E ratio of 40.03 times. We believe that the current stock price is far from reflecting the basic situation of the company. With the further improvement of the company's gross profit margin, the company's performance flexibility will be fully released, we are optimistic about the future development of the company and give the company's stock price "overweight" rating.

Risk:

The intensification of competition in the tire manufacturing industry has led to a reduction in gross profit margin and the uncertainty caused by sharp fluctuations in raw material costs.