Longxi shares: high-end joint bearings to replace the import market

Due to its unique ability to withstand heavy loads, adjustable cores, etc., it is widely used in new energy (wind power, nuclear power), aerospace and military, railway locomotives and railway traffic, steel structures, roads and bridges, and large-scale special engineering machinery. Heavy-duty vehicles, water conservancy and hydropower, metallurgy and mining industries. At present, China’s economy is in the stage of industrial upgrading and structural adjustment. New and high-tech industries such as new energy, high-speed railways, large-scale special engineering machinery, and heavy-duty machinery have been identified by the country as key development areas. The development of these fields will provide high-end The joint bearing industry brings new opportunities for development.

Longxi Group specializes in special bearings, gears and gearboxes for joint bearings, etc. The company has grown into the largest supplier and largest exporter of domestic articulated bearings, with a domestic market share of 65 to 70% and an international market share. 13% is in a dominant position in the field of joint bearings in China. The company adopts a low-cost and differentiated competition model. The gross profit rate of the joint bearing is as high as 47 to 48%. The company's R&D capability is strong. It has established the only joint bearing research institute and joint bearing testing experiment center in the country. The company is the maker of national standards and industry standards for joint bearings, and has a stable customer base of more than 500, leading the industry.

Mo panic! The main force is still in the fall? The locked stock is likely to be saved! March stock market is likely to change dramatically? The hidden money behind the tussle! The domestic market for articulated bearings is about 1.6 billion yuan, but one billion yuan for high-end articulated bearings needs to be imported every year. The performance of Longxi Group's products is already at the same level as foreign products, and the price of Longxi's shares is only 50-60% of that of similar products of foreign companies. It has a very high price/performance ratio and has a wide range of import substitution. Therefore, Longxi Group is expected to replace more market share in the domestic high-end joint bearing market in the future.

The 2011-2012 company's special joint bearing technical transformation project began operation, will enable the company to increase the annual output of 2.4 million sets of special joint bearings, will increase sales revenue by 360 million yuan, increase total profit of 132 million yuan, and increase after-tax profit 1.12 100 million yuan, equivalent to 0.37 yuan per share.

As the company is the leading company in the domestic joint bearing industry and is in the leading position in the industry, new special joint bearings will be produced in succession in 2011-2012. High-end joint bearings have the potential to replace imported materials. It is expected that the compound annual growth rate of net profit for 2011-2012 will be over 30%, and the corresponding price-earnings ratio for 2011 will be around 25 times. The market outlook is worth paying attention!