The hottest Tianrun crankshaft desalinates the sin

Tianrun crankshaft: desalinate the single attribute of heavy trucks and export decoration

Tianrun crankshaft: desalinate the single attribute of heavy trucks and export decoration

China Construction Machinery Information

Guide: Tianrun crankshaft today announced a private placement plan: it plans to issue no more than 43 million shares in a non-public offering, the issue price is no less than 25.38 yuan, and the raised funds are no more than 1.08 billion yuan, mainly invested in six projects: Weichai heavy engine crankshaft production line (240 million yuan) Cummins/Xichai/shangfeihong heavy engine production line

Tianrun crankshaft announced its private placement plan today: it plans to issue no more than 43million shares in a non-public offering at a price of no less than 25.38 yuan and raise no more than 1.08 billion yuan, mainly invested in six projects: Weichai heavy engine crankshaft production line (240 million yuan), Cummins/Xichai/shangfeihong heavy engine production line (250 million yuan), Cummins light engine production line (120 million yuan), India Leyland medium engine production line (150 million yuan) Car crankshaft production line (140million yuan) and marine crankshaft forging production line (120million yuan)

in addition, the company issued a performance correction notice: the growth rate of the company's annual net profit attributable to the owners of the parent company, which was specifically calculated in the company's third quarter report in 2010, was increased from a year-on-year increase of 60%-80% to 80%-110%

comments:

the company is the largest independent crankshaft supplier of heavy truck engines in China, and is the leading enterprise in this segment industry in China. The company and Liaoning 518 are a duopoly in the domestic heavy truck crankshaft market, accounting for 90% of the domestic heavy truck crankshaft market share. In the future, the company's industrial layout will start to set foot in the crankshaft, connecting rod and other fields of cars, non road vehicles and ships. Heavy truck engine crankshafts with high gross margins contribute 80% of the company's profits

from the perspective of the investment direction of this fund-raising, about 50% has been invested in the heavy truck crankshaft with high gross profit. The heavy truck crankshaft is still the focus of the company's product strategy, but the expansion of the car, marine and export markets has achieved initial results, and the off-road crankshaft will also become the development direction of the company in the future. This will further weaken the single attribute of the company's heavy truck and reduce cyclical fluctuations

the new capacity is about 670000 pieces, including 200000 heavy crankshafts/year: 50000 pieces/year for Weichai p12 and WD615 heavy engines. It is the capacity of heavy-duty engine crankshafts with 100000 pieces/year for Xichai, Iveco and Cummins L series engines; 150000 light crankshafts:

invite Chinese adhesive manufacturers who encounter technical difficulties in the process of new product development to participate in the

supporting 150000 Fukuda Cummins 2.8L light engine crankshafts/year; 100000 medium-sized crankshafts: mainly supporting the production of India Leyland 6D, 6e series medium-sized engine crankshafts; 200000 car crankshafts: 100000 car engine crankshafts/year for BAIC Saab and GAC Fiat; There are also 2000 marine crankshafts of various models

after all the crankshafts are put into production, we calculate the new sales revenue of 820million yuan according to the unit price of 2800 yuan/piece for heavy crankshafts, 500 yuan/piece for light crankshafts, 800 yuan/piece for medium crankshafts, and 500 yuan/piece for car crankshafts. Assuming that the profitability and actual income tax rate of the last three years are maintained, we preliminarily estimate the new after tax net profit of about 130million yuan

for the future industry competition structure, we believe that with the concentration of downstream main engine enterprises increasing, the concentration of crankshaft industry will also further increase. The company relies on Cummins' strategic support and the flexible mechanism of private enterprises, and the medium and short-term growth space is expected

we raised the company's earnings per share in 2010 and 2011 to 0.94 yuan and 1 extensometer or strain gauge to show the elongation of the standard tensile sample 31 yuan profit forecast. Based on the closing price of 32.60 yuan on December 17, 2010, the corresponding dynamic P/E ratios are 35 times and 25 times. We are optimistic about the competitiveness of the company in the process of improving industry concentration in the future, and optimistic about the happy time when foreign mainstream host enterprises strategically support the development of domestic commercial vehicle supporting parts enterprises, and raise the rating to "strongly recommended"