New material of The Times (600458. SH): Share the high speed rail feast

Railway line elastic components business demand exuberant, the company 2008 Bridge support to achieve sales revenue of 200 million yuan, 2009 new signed bridge orders for 400 million ~5 billion, 2010 bridge support orders reached more than 500 million yuan. In the first half of 2009, due to the fierce competition in the industry, the company's gross profit margin fell to below 18%, the bridge bracket by the decline of gross profit margin, the company's 2009 overall elastic component Bracket's gross margin also slipped.　　However, through the recent tender prices, the company bridge bracket price decline situation is contained, gross margin will be stable at the 20%~25% level.　　Combined with the supply and demand of bridge support industry, we expect the company's bridge support business 2010-2012 years to achieve sales revenue of 500 million yuan, 800 million yuan, 1 billion yuan. China, Tibao and China track is the only three high iron production enterprises, the current domestic market share 40%~50%.　　The company is the only supplier of the three railway plate, and with three enterprises to participate in the high-speed railway turnout project bidding, we believe that the company's turnout elastic plate will fully benefit from the import substitution and high-speed rail (high-speed rail civil war) scale expansion. 2008, the company's high speed railway turnout elastic iron plate income of about 50 million yuan, from the company's tender situation, the company is expected to hold a potential handheld orders more than 300 million yuan, and in the next few years the product will maintain more than 50% of the high-speed growth. (Guo Hai Securities Research Institute)