Machine tool industry private enterprise pioneer, close to customer demand leading market. Compared with many other domestic machine tool companies, especially Shenyang Machine Tool (000410, stock bar), Kunming Machine Tool, the company does not have cutting-edge technical advantages, but the company closely tracks the needs of customers, a profound understanding of the industry, making the company quickly respond to the market, to seize other Contender site.

With a numerical control rate of 100%, a single machine tool will be digitized in the future. The company is a rare domestic machine tool company that only makes CNC machine tools, and its product gross margin level is also at the leading level in the industry. With the continuous improvement of the automation level, the company is expected to take the lead in completing the transition from a single machine tool solution to a digital multiple machine tool solution. The company is seizing the opportunity of market segmentation in the machine tool industry and specializing in refined products. The company focuses on the research and development, production and sales of high-end popular CNC machine tools. Among them, the market share of CNC hub lathes ranked first in China, and machining centers have entered the top 10 for many years. In the future, mid-range machine tools will be imported and replaced.

Raised investment projects helped boost performance. The fundraising projects are the RF series CNC machine tool transformation project and the bearing mill super-automatic line reconstruction project, which require a total of 197 million yuan of funds to be raised. The construction period and the production period are both two years. After the formal production, the company's annual income and net profit It will increase 400 million yuan and 54.61 million yuan respectively, and contribute 0.85 yuan for the company's EPS.

Forecasts and recommendations: We expect the diluted EPS of the company from 2010 to 2012 to be 1.08 yuan, 1.43 yuan, and 1.88 yuan respectively. During the twelve-year period, CNC machine tools will usher in rapid development. The company's corresponding PE in 2011 is 35 times, giving the company "recommendation Ratings.