South China Heavy industry pioneer of metal pipe fittings

According to our profit forecast, China South Heavy Industry (002445) 2010-2012 earnings per share were calculated as 0.71, 0.90 and 1.62 yuan after the issuance of equity.　　We give the company 2010 earnings per share of 26-34 times earnings ratio for inquiry basis, the proposed network under the inquiry range of 18.6-24.3 yuan. Downstream industry rapid development, strong demand. China has strong momentum in the fields of petrochemical, shipbuilding and electric power, but lacks the competitive power in some key equipment and supporting components.　　Taking nuclear power auxiliary equipment as an example, the nuclear-grade pipe fittings needed in the construction of nuclear power plant are not available at present, which provides a wide space for the enterprises with higher technical content and larger market size. National Industrial Policy encourages the improvement of industry quality. The National industrial policy encourages industrial metal pipe fittings industry to upgrade, improve the overall technical content, production of large caliber, composite materials, high-performance, special stainless steel, alloy steel industrial metal pipe fittings, expand the size of enterprises.　　These industrial policies will promote the overall quality of industrial metal pipe industry, increase the technical content of products, enhance the scale effect of industrial metal pipe industry, and enhance the international competitiveness of China's industrial metal pipe fittings industry. Company is currently the largest manufacturer of industrial metal pipe fittings, with large caliber, composite materials, high-performance pipe production capacity.　　The company developed composite metal pipe in mass production stage, production technology has reached the domestic industry leading level, 2008 subsidiary heavy industry equipment to become Sinopec's largest composite pipe supplier. The Yangtze River Delta region is one of the most economically developed regions in China, and the geographical features of the company bring the advantages of purchasing and market demand. Yangtze River Delta region concentrated on a large number of pipe industry downstream enterprises, is China's shipbuilding industry, but also Sinopec, PetroChina Oil and gas pipeline network investment focus, there are Yangzi petrochemical, jinling Petrochemical, Yizheng chemical fiber, such as many of the leading enterprises in the industry. Power shortage in the Yangtze River Delta, Shanghai, Jiangsu, Zhejiang Electric Power industry construction and development will be accelerated. The region's huge market demand is conducive to the expansion of the company's business.　　The company is located in Jiangyin and the surrounding area is also the steel pipe industry gathering place, the company's raw material suppliers mainly concentrated in the vicinity, the company to compare the way of procurement, can effectively reduce costs, to ensure that the company stable and reliable supply of raw materials. Risk tip: Affected by the fluctuation of the downstream industry risk, industry competition risk, technology development lag risk, the main raw materials and product price fluctuations affect the risk.