High-strength infrared military leading edge to lay the growth

Gold Infrared is the domestic infrared thermal image instrument industry leader, temperature-measuring products ranked fourth in the world, ranked first in the country.　　Overall infrared thermal image instrument sales revenue in the domestic enterprises ranked first, is the domestic infrared thermal imager industry leader. Infrared Thermal Imager industry has high technical barriers, industrialization difficulties, procurement of raw materials and other barriers to entry, from the new entrants threat is very small.　　At present, regardless of military field or civilian field, the application of Infrared Thermal Imager is still in the primary stage, the future growth space is still very large. The military market is not a fully competitive market. The domestic military market, on the one hand, because of export embargo, on the other hand, the need for security, only through the military qualification certification of local enterprises can participate. In many developing countries, because they do not have the ability to manufacture infrared imager, Chinese enterprises are also the main players in the military market.　　These military market demand for rapid growth, to the domestic Infrared Thermal Imager enterprises to provide a fertile ground for rapid growth.　　2009 is the gold in the domestic military market breakthrough year, follow-up rapid growth can be. Because of the complex application environment, the military market needs to be highly customized, and attaches great importance to product quality and performance. More importantly, also need to participate in the enterprise has a complete military qualification certification. And the German infrared over the years to customize the research and development capacity has a very deep accumulation, product quality and performance is also clearly leading the domestic major competitors, and has a complete military qualification certification. Therefore, the military market is a very suitable area for the development of the company.　　It is also proved that the company's performance in this field is very outstanding. According to our calculations, the 2009 company in the military market sales of about 160 million yuan, in the domestic private Infrared thermal imager enterprises in the absolute leading position.　　We believe that the 2009 is the company in the domestic military market breakthrough in the year, follow-up with the new military models gradually stereotypes, the company will be under the support of military orders rapid growth.　　The company's IPO projects include infrared optical Processing center project, infrared Thermal Imager industrial base project, research and Development and experimental center projects, such as three projects, a total investment of 475 million yuan. IR Thermal Imager Industrialization Base project will make the capacity of Infrared Thermal imager from 2539 to 8450 units of scale, will greatly alleviate the current company's capacity bottlenecks; Infrared optical processing Center project is the main product for the company infrared imaging products supporting infrared optical lenses, The project will produce an annual production capacity of 42250 pieces of infrared optical lenses. Infrared Thermal Imager capacity of 8450 units to be equipped with more than 40,000 pieces of lenses, the company's current external manufacturers in the number of products, quality, delivery time can not meet the requirements, so the Infrared optical Processing Center project will effectively solve optical parts supply problems, and can save costs 16.85 million　　The research and Development and Experiment Center project aims at enhancing the development of new products and new technologies, providing hardware and software support for product development, and further strengthening the company's technology research and development advantages. We expect 2010, 2011, 2012 EPS respectively: 0.67, 0.87, 1.07. Yuan. Given the competitive advantage of the company and the fact that the company is essentially a military electronics unit, it can offer a higher valuation than the average electronic unit. We believe that the company's reasonable valuation of 29.90-33.30 yuan, equivalent to 2010 45-50 times PE.