Main points of investment:
Domestic prestressed steel faucet, product application field is wide
1) the company is a leading enterprise of prestressed steel products in China, the main products include prestressed concrete steel strands, steel wires, steel rods, galvanized steel wires, steel strands, and high-speed rail slabs, etc., with an annual production capacity of 670000 tons of prestressed steel. 2) the upstream suppliers of the company are mainly major steel mills, and the downstream mainly correspond to infrastructure related projects. The products are widely used in many fields, such as railway, water transmission and distribution engineering, highway, bridge, civil and industrial construction, transmission and distribution engineering and prestressed special structure engineering. 3) at present, the company's products have been exported to more than 90 countries and regions, and have passed the strict certification of more than 10 countries. In 2017, export business accounted for about 30% of the company's revenue.
CRTSIII type high-speed railway track plate production enterprise with strong technical strength
1) the company is one of the main R & D units of CRTSIII type high-speed railway two-way pretensioned prestressed concrete track plate, and independently developed track plate automatic intelligent chemical equipment and track information series products. It is the only private enterprise in the domestic high-speed railway track plate production company, and the company has formed a comprehensive competitive advantage from material supply to industrial services. The products are widely used in Zheng Xu, Beijing-Shenyang, Zheng Fu, Shanghe-Hangzhou, Jingxiong and other high-speed railway lines. 2) the 13th five-year Development Plan of the Railway proposes that by 2020, the mileage of the national railway should reach 150000 km, including 30,000 km of high-speed railway. at the same time, according to the working meeting of the China Railway Corporation, the national railway fixed assets investment will maintain the intensity scale in 2019 and ensure that 6800 km of new lines will be put into production, of which 3200 km of high-speed railway will be calculated according to the length of a single track plate and the unit price of 8000 yuan. The market scale of high-speed rail plate is expected to reach 4.57 billion yuan in 2019, and the company's products have a broad application market. 3) in terms of subway, the company has developed a two-way pretensioned prestressed concrete composite damping track slab which can reduce vibration and noise, and can be adjusted and replaced. the initial test section is laid on Tianjin Metro Line 5, Line 6 and Urumqi Metro Line 1, it is expected to replace the existing cast-in-place concrete technology of subway track bed in the future, and the development prospect is worth looking forward to.
Profit forecast, covering "overweight" rating for the first time
We believe that, as a leading enterprise of domestic prestressed steel products, the company has a wide range of product applications, and the business development of high-speed rail and subway track plates is worth looking forward to. At the same time, with the increasing downward pressure on the economy, the strength of infrastructure deficiencies is expected to continue to increase. The company is expected to benefit first. In 2018-20, the company is expected to achieve an operating income of 23.10 pounds 26.16 pounds per share, an increase of 6 percent, 13 percent, 9 percent, and a net profit of 1.25 percent, 174 percent, and 29 percent, respectively, with a year-on-year increase of 5 percent, 40 percent, 29 percent, and an EPS of 0.15, 0.21, 0.27 yuan per share, respectively, giving the "overweight" rating for the first time.
Risk hints: rising risk of raw materials; lower-than-expected investment in infrastructure; export anti-dumping