Southern bearings: bearing the main industry sound, automotive + aviation wheel
Domestic needle roller bearings, pulleys are expected to become the company's new revenue growth
In the needle roller bearing industry leader, in recent years, the overall situation of the manufacturing sector decline, the domestic bearing industry homogeneous low-end fierce competition, the company's business in recent years remained stable. In 2015 the company achieved revenue of 302 million yuan, net profit of 65.22 million yuan. Company pulley products are participating in Valeo test, only a durability test has not yet passed, the future is expected to pulley products through the Valeo test will enter the pre-installed market, the main industry to open up new growth space.
Wuxi wing pony into the aviation tire renovation areas, Wuxi pterosaur has a significant qualification advantage
The company will own funds to cash transfer to Wuxi pterosaurs equity and capital increase of 58.7755 million yuan, the company shares after the transaction 36% stake in Wuxi pterosaur. As the aviation tire manufacturing market access threshold is very high, industry concentration is very high, the global aviation tire market share roughly 37% of Michelin, Goodyear 20%, Bridgestone 30%, the remaining 13%. Wuxi Pterosaur in 2005 made the Civil Aviation Administration of China "maintenance permit", after successively obtained Air China, China Eastern Airlines, China Southern Airlines and other airlines to repair business accreditation certificate, and made the Boeing air tires all 23 pieces of 19 Pieces, breaking the qualifications of the restrictions, with a strong competitive advantage.
Aviation tire imports and retread tire penetration continues to increase, the domestic aviation tire industry market in excess of 30 billion
China's aviation tire imports from 2002 to 2015 compound annual growth rate of 20.5% from 2013, the import of its retreading tire growth accelerated significantly, 13,14,15 annual growth rates were 181.7%, 437.4%, 64.3%, 2015 China's import value of retreaded tires has more than half of all imports of aviation tires. According to our projections, the demand for replacement of domestic tires up to 32 million, the market size of about 2.6 billion. Considering the spare parts and other factors in each maintenance, the size of the market can be more than 3 billion yuan.
Earnings forecast and valuation
We expect the company 16-18 years to achieve revenue of 316 million yuan, 334 million yuan, 358 million yuan, to achieve the mother net profit of 75.5 million yuan, 85.15 million yuan, 95.91 million yuan, EPS were 0.22,0.24,0.28 yuan, the current stock price Corresponding to PE were 63.0X, 55.8X, 49.6X. For the first time coverage, give "cautious recommendation" rating.
In the needle roller bearing industry leader, in recent years, the overall situation of the manufacturing sector decline, the domestic bearing industry homogeneous low-end fierce competition, the company's business in recent years remained stable. In 2015 the company achieved revenue of 302 million yuan, net profit of 65.22 million yuan. Company pulley products are participating in Valeo test, only a durability test has not yet passed, the future is expected to pulley products through the Valeo test will enter the pre-installed market, the main industry to open up new growth space.
Wuxi wing pony into the aviation tire renovation areas, Wuxi pterosaur has a significant qualification advantage
The company will own funds to cash transfer to Wuxi pterosaurs equity and capital increase of 58.7755 million yuan, the company shares after the transaction 36% stake in Wuxi pterosaur. As the aviation tire manufacturing market access threshold is very high, industry concentration is very high, the global aviation tire market share roughly 37% of Michelin, Goodyear 20%, Bridgestone 30%, the remaining 13%. Wuxi Pterosaur in 2005 made the Civil Aviation Administration of China "maintenance permit", after successively obtained Air China, China Eastern Airlines, China Southern Airlines and other airlines to repair business accreditation certificate, and made the Boeing air tires all 23 pieces of 19 Pieces, breaking the qualifications of the restrictions, with a strong competitive advantage.
Aviation tire imports and retread tire penetration continues to increase, the domestic aviation tire industry market in excess of 30 billion
China's aviation tire imports from 2002 to 2015 compound annual growth rate of 20.5% from 2013, the import of its retreading tire growth accelerated significantly, 13,14,15 annual growth rates were 181.7%, 437.4%, 64.3%, 2015 China's import value of retreaded tires has more than half of all imports of aviation tires. According to our projections, the demand for replacement of domestic tires up to 32 million, the market size of about 2.6 billion. Considering the spare parts and other factors in each maintenance, the size of the market can be more than 3 billion yuan.
Earnings forecast and valuation
We expect the company 16-18 years to achieve revenue of 316 million yuan, 334 million yuan, 358 million yuan, to achieve the mother net profit of 75.5 million yuan, 85.15 million yuan, 95.91 million yuan, EPS were 0.22,0.24,0.28 yuan, the current stock price Corresponding to PE were 63.0X, 55.8X, 49.6X. For the first time coverage, give "cautious recommendation" rating.