Category: Money tips Release Date: 2006-11-22
In the "enhanced policy support", the "Eleventh Five-Year" period of China's large-scale, precision machine tool alternative to imports of space will be opened, is expected to average annual growth rate of more than 30%. China Precision Machine Tool Company is the leading enterprise, its gears grinding up to 50% market share. Four decades of unswerving self-innovation, take-off for the company to lay a solid foundation.
From the Y7032A, Y7125A, YK7232 to YK73125 and VTM180, relying on independent innovation, the company gear grinding machine manufacturing technology has entered the world advanced level. Import substitution, industrial upgrading and export expansion and so on, will pull the company into a high growth track, expects net profit compound growth rate of the next five years, 37.8%.
Over the next decade, China's gear industry's compound annual growth rate up to 7% or more, along with industrial upgrading, to the high precision gear machining is the development would help boost growth in demand for gear grinding machine as high as 30% or more; .. At present, China's import dependency gear grinding machine degree as high as 50% or more, the greatest room for import substitution. Companies rely on cost advantage and international level products, has been knocking on the door to European and American markets, international market development for the company's high-growth icing on the cake the next five years; .. horizontal merger integration, to achieve large group strategy, and use it as the incubator for The gear listed companies and processing equipment, total solution development strategy. In addition, the company is planning to build a heavy-duty assembly plant and two heavy-duty machining center workshop, affect the company's bottleneck is expected to increase production capacity in 2007 gradually resolved.
Tax incentives, stripping machine Qin main business and other non-public assets, and large groups under the strategy of the reorganization and integration, is to stimulate an active catalyst for company's share price.
Risk factors: Gear grinding machine export market growth and company expansion lower than expected;'s low percentage of bad debt accrual, there are certain financial risks.
Without taking into account tax benefits, and mergers and acquisitions context, DCF and PE valuation results show that the value of the company's goals for the 9.00 - 10.00 yuan, the current share price undervalued, investment advice buying.
