Tire demand still has strong support. From 2005 to 2013, the output of passenger cars in China grew at a compound annual rate of 21%, the annual compound growth of commercial vehicles was 11%, and the number of cars retained nearly quadrupled. However, the per capita possession is still relatively low, and there is still room for further growth in the future. Drive demand for tires to grow. From 2005 to 2014, the turnover of highway freight increased by 6 times. The rise of e-commerce to stimulate the rapid development of logistics transportation will also support the growth of tire demand.
The fall in raw material prices has increased profitability. In 2014, the average price of natural rubber fell by 33% compared with that in 2013, and the price of synthetic rubber also fell at the same time. The two types of rubber accounted for 70% of the total cost of raw materials. Tire product prices fell by about 10% in 2014 compared to 2013. As a result, the spread between raw materials and finished products expanded and the company's gross profit level improved.
Management innovation, intensive cultivation. The company through the brand building, quality tracking, promotion of services and e-commerce marketing and other management measures, to become more extensive management of fine management, management efficiency. In the past three years, the overall operating rate of the whole industry was 65%-70%. The company's capacity utilization rate has remained above 95%, which is the highest level in the industry. At the same time, the gross profit margin and net profit rate have also increased year by year.
The background of the state-owned enterprises shoulders an integrated mission. The company’s actual controller, China National Chemical Corporation, has another three tire companies. To solve the competition problem in the industry, the company promised to propose a plan to integrate the remaining three tire companies with Aeolus shares as a platform by the end of 2017. At the same time, China National Chemical Corporation has the potential to improve the company through international mergers and acquisitions and internal and external synergies.
Earnings Forecast and Investment Rating: We expect the company's operating income for 2014-2016 to reach 80.01, 83.16, and 9.217 billion yuan, respectively, an increase of -6.29%, 3.93%, and 10.84% ​​over the same period of last year. Net profit attributable to shareholders of the parent company will be 3.74, 4.80, respectively. 604 million yuan, an increase of 19.41%, 28.44%, 25.78%, 2014-2016 EPS reached 1.00 yuan, 1.28 yuan and 1.61 yuan, respectively, corresponding to the dynamic PE of March 19, 2015 closing price (19.55 yuan/share) It is 20 times, 15 times and 12 times. The absolute valuation given in accordance with the DCF valuation method is 21.77 yuan per share, referring to the company's closing price of 19.55 yuan on March 19, 2015, and the first time it was given an "overweight" rating.
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With good service, unique philosophy,
professional team and reliable quality, we win the worldwide customers`
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than 40 countries such as Germany, U.K, Spain, Italy, Turkey, Brazil,
Argentina, Mexico, Iran, India, Vietnam, etc. Among the customers, many of them
are the world-renown companies.
Ball Bearing
Ball Bearing,Deep Groove Ball Bearing,Roller Ball Bearing,Full Ceramic Bearing
Ningbo Nide Mechanical Equipment Co., Ltd. , http://www.nide-auto.com