The localization of the most popular Zhonghe elect

2022-09-23
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Zhonghe electromechanical: accelerated localization of rail transit signal system

Zhonghe electromechanical: accelerated localization of rail transit signal system

China Construction machinery information

Guide: I. event overview Zhonghe electromechanical (000925) released its 2011 Annual Report: in 2011, the company achieved an operating revenue of 1.373 billion yuan, an increase of 31.07% year-on-year; The total profit was 38 million yuan, a year-on-year decrease of 45.65%; Net profit attributable to shareholders of the listed company after deducting non recurring profits and losses 0

I. event overview

Zhonghe electromechanical (000925) released its 2011 Annual Report: in 2011, the company achieved an operating revenue of 1.373 billion yuan, an increase of 31.07% year-on-year; The total profit was 38 million yuan, a year-on-year decrease of 45.65%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 18 million yuan, a year-on-year decrease of 58.01% from the perspective of sustainable development of enterprises

II. Analysis and judgment

desulfurization business dragged down the company's profits. During the reporting period, the company's flue gas desulfurization business achieved an operating revenue of 710 million yuan, an increase of 17.71% year-on-year; The net profit was -16.82 million yuan, a year-on-year decrease of 146.38%. The main reason is that the thermal power desulfurization market capacity gradually shrinks, the industry competition is fierce, and the company's accounts receivable increases, and a large amount of impairment reserves are accrued, resulting in a sharp decline in operating profit

optimistic about the localization process of rail transit system. During the reporting period, the rail transit business achieved an operating income of 510 million yuan, an increase of 70.06% year-on-year; The net profit was 30.67 million yuan, an increase of 120.47% year-on-year. At the same time, the CBTC system independently developed by the company has passed the certification of Lloyd's railway (Asia), which will significantly improve the company's comprehensive competitiveness and profit margin. The rail transit signal system market is in an oligopoly state, and the barriers to entry are extremely high. At present, the company's market share is about 25%, and its main competitors are Casco (joint venture between China railway signal and ALSTOM,% market share) and China railway signal (about 25% share). According to the national plan, 79 subway lines will be built by 2015, and the company will fully benefit from the rapid development of the rail transit market in the next few years

the rail transit business company mainly focuses on the R & D and application of independent systems. At present, about 35% of the company's contracts are subcontracted to foreign parties, and the subcontracting business is mainly the core software part and service part of the signal system. If the company wins the bid for the new metro project and adopts the independently developed system, this gross profit margin will be increased to more than 35%, which will significantly increase the company's performance

semiconductor monocrystalline silicon increased steadily. During the reporting period, the company's semiconductor energy-saving materials business achieved an operating income of 149 million yuan, an increase of 4.26% year-on-year; The net profit of 30.35 million yuan can not only reduce the quality of parts by about 40%, but also increase by 2.25% year-on-year. Due to the high barriers to entry, the fierce competition of semiconductor grade monocrystalline silicon is far less than that of solar grade polycrystalline silicon, and the downstream demand is relatively stable. The company's existing capacity is 60 tons of monocrystalline silicon per year, and the silicon grinding wafer is about 6 million pieces per year. We expect the company's semiconductor monocrystalline silicon business to grow steadily in the future

III. profit forecast and investment suggestions

considering the great uncertainty of whether the company's independently developed signal system can win the bid, we lowered the company's profit forecast, with annual EPS of 0.32, 0.45 and 0.63 yuan, and the corresponding P/E ratios of 32, 22 and 16 times respectively, maintaining the investment rating of "prudent recommendation" of the company

IV. risk tips:

the desulfurization market continues to decline, and the construction of rail transit slows down

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