Oriental zirconium industry: Nuclear grade sponge zirconium open up space

Traditional business growth, nuclear-grade sponge zirconium space Huge, "buy" rating. Zirconium industry is currently in the high-speed growth stage, the Oriental Zirconium industry expansion Project prospects, the traditional business is expected to maintain 50% or so compound growth. The company acquired Chaoyang Parkson Fast into the nuclear-grade sponge zirconium field, nuclear-grade sponge zirconium in the next 5 years total demand of more than 4000 tons, growth space is huge. We calculate, 2010-2012 company earnings per share of 0.28 yuan, 0.61 yuan and 1.05 yuan, composite growth of 80%.　　Given that the company's nuclear-grade sponge zirconium is expected to enter the outbreak in 2012, we give the company 45 times times 2012 valuation, the target price of 47 yuan. Nuclear-grade zirconium: the nuclear power industry's preferred target, the only demand for accelerated growth. Products in general nuclear power equipment will be in the next few years to usher in the growth of the peak, followed by stable growth. But the zirconium material is different, as the nuclear power plant most important consumables, the nuclear power installed scale unceasing rise: On the one hand will produce the zirconium material the new demand, on the other hand the annual zirconium material renewal demand will unceasingly increase. Two aspects of the superposition, determines the nuclear-grade zirconium material growth will continue to 2020 years.　　We calculate 2010-2015 nuclear-grade sponge zirconium total demand will exceed 4000 tons, compound growth rate of 60%, is the nuclear power industry's preferred target. The acquisition of Chaoyang Parkson, leap into the nuclear-grade sponge zirconium field. The company completes to the sponge Zirconium leader Enterprise Chaoyang Parkson's acquisition, Chaoyang Parkson has the current domestic biggest nuclear grade sponge zirconium production line, the production capacity reaches 150 tons, in addition has 600 ton industrial grade sponge zirconium production capacity. Simple calculation, if the existing capacity is fully utilized, the sponge zirconium business will contribute to the eastern zirconium industry nearly 0.30 yuan.　　Chaoyang Parkson nuclear-grade sponge zirconium all parameters have reached China and the United States nuclear-grade sponge zirconium requirements, is expected to quickly achieve sales. Nuclear grade sponge zirconium: approximate oligopoly market to maintain high gross margin. At present, including Huachang, the United States Westinghouse, including the four major sponge zirconium plant accounted for the global market share of sponge zirconium nearly 80%, the entire market approximation oligopoly market pattern, nuclear-grade sponge zirconium to maintain a 5% annual price increase, gross margin of nearly 60%.　　We calculate that the 2011-2013 nuclear-grade sponge zirconium business will be the Oriental Zirconium industry contribution EPS 0.08, 0.18 and 0.39 yuan respectively. For the Australian zirconium ore, oriental zirconium industry is expected to become the most cost advantages of the zirconium factory. Oriental zirconium Industry and DCM Company signed cooperation intention to jointly mining the Australian zirconium ore. The zirconium ore belongs to concentrate, with zirconium content of 66%, reserves 3.5 million tons. In the case of keeping the yield of the yield unchanged, the zirconium content of zirconium ore is increased by 1%, which will reduce the cost by 3%-5%. Oriental zirconium industry is currently the highest gross domestic product of zirconium manufacturers, compared to foreign competitors, the company's product prices are nearly 30%.　　If the zirconium ore in Australia can be discussed, the cost advantage of the Oriental zirconium industry relative to domestic and foreign competitors will be more obvious and be advantageous to master the pricing power of products. When traditional business expands, high growth is expected to continue. Oriental zirconium industry is the most complete domestic zirconium product line of enterprises, the current zirconium industry is still in a high-speed growth period, the company's complete product line to the mostLarge-scale beneficiary industry growth. In addition, including artificial gems, ceramic knives, high-end ceramic ware, including the rapid growth in demand for new products, the company in zirconium silicate, composite zirconia expansion Project prospects, the traditional business is expected to maintain a 45%-50% composite growth rate.