We have different views from the market:
In the market, it is generally expected that the company will enter the high-speed rail brake market in 2012 and will make considerable achievements. Based on the current localization of high-speed rails and the development stage of the company's high-speed rail brakes, we estimate that the company's high-speed rail brakes are expected to be realized in 2013 and beyond. Mass production.
We believe that the growth of the company's performance in the past three years will mainly come from the steady development of existing
Diamond Tools and the doubling growth of power tools. At the same time, we believe that the management team is robust yet flexible in management style and has a wide range of marketing outlets. Strong terminal control capabilities will be an important driver of growth in company performance.
※Diamond tools add new enthusiasm, and steady growth guarantees that diamond tools have always been the company's largest main business, accounting for 82.37% and 78.22% of sales revenue in 2008-2009, respectively. In the subdivided products, the company's diamond grinding tools will gradually replace the traditional silicon carbide abrasive tools in the grinding and polishing of ceramic production. The service life of diamond abrasive tools is more than 20 times that of traditional silicon carbide abrasive tools. The replacement ratio for silicon carbide abrasive tools in ceramic grinding and polishing production is about 60%, and there is still room for expansion. The domestic ceramics production enterprises gradually adopted the method of outsourcing the production line diamond grinding tools, outsourced the purchase and maintenance of the diamond grinding tools required for the production line to the diamond grinding tool manufacturers, and settled them according to the workload. At present, there are more than 2,000 domestic ceramic production lines. According to the substitution rate of 60%, the average demand for diamond grinding tools for each production line is about 2 million yuan, and the overall market size exceeds 4 billion yuan. However, due to this tool outsourcing model requires the contractor to pay a large amount of money. The amount of funds, with strong capital barriers, many small-scale manufacturers in the industry will be kept out.
By the end of 2010, the company has successfully obtained diamond grinding tools for five production lines, and it is expected to exceed 17 production lines in 2011. With years of technology accumulation in diamond grinding tools, first-mover advantage in the outsourcing of diamond grinding tools from ceramic production lines, and strong capital strength after listing, the company has a vast market in the future.
The downstream industries of diamond tools mainly focus on infrastructure construction, construction, and decoration of roads and bridges, benefiting from the country’s road network construction and the acceleration of affordable housing construction in recent years, and the needs of the second generation of baby boomers born after the 1980s. Focused on the release of the decoration and decoration industry, it is expected that the growth rate of the diamond tool industry will be approximately 15% in the next few years. As the leading diamond tool in China, the company ranks first in the industry for consecutive years, taking into account the broad market space brought by new markets and new profit models. It is expected that the company will develop its diamond tools business in the next three years.
