Science and Technology Board Purchase Strategy: Broad Specialty (688186)

Science and Technology Board Purchase Strategy: Broad Specialty (688186)
This report reads: We recommend that the reference range of the special materials is between 0% and 12%, corresponding to the price of 16.73 yuan-17.33 yuan, it is recommended to purchase the first time. Abstract: At present, small-scale accounts of less than 300 million are close to 50%. Under the quotation strategy of small-scale accounts that reduce the risk by 1 cent because of the scale elimination risk, the market enters the stage of effective information and low-price gaming among institutions.The actual quotation center of the science and technology board company Dongfang Biological on January 13 has fallen to the 11% -12% quantile. According to the institutional game and the logic of quantification decline, the majority of special materials quoted on January 1The quantile will be considered downwards at the 12% quantile. Taking into account, it is expected that the inquiry range for tomorrow’s vast special wood will be between 0% and 12%, corresponding to the price of 16.73 yuan-17.33 yuan. The company is an advanced enterprise with high-quality special alloy materials as its core business. Its products have the characteristics of “small batches, multiple varieties, and high efficiency”.The company focuses on the distribution of special alloys, special stainless steel and other products. The proportion of special steel materials revenue reached 87.24%, of which gear steel accounts for 66.88%, special steel products accounted for 12.76%; At present, it has formed a stable cooperative relationship with high-quality customers such as Yakai Group, Jiangsu Jinyuan, Jiangyin Zhenhong, 杭州桑拿洗浴会所 and the top five customers accounted for 37% of sales revenue.74%.Gear steel technology constitutes the company’s core competitive advantage.The company’s gear steel technology level has reached the domestic advanced level, the product particle size reaches 8-9, the content of inclusions is low, and the performance meets international verification standards. In 2018, the company’s global market share of wind power gear steel reached 14.50%, the national market share of rail transit gear steel and mold steel materials reached 23 respectively.69% and 10.60%; In addition, relying on core technology, the company integrates key process conversions of smelting, special alloys, special stainless steel products, major defense industries, marine petrochemical equipment, and other high-demand areas. Combining the company’s scale, 合肥夜网 product performance, market positioning and other characteristics, Fushun Special Steel, Gangyan Gaona, Yongxing Materials, Japan Datong, American Carpenter, and Tongyu Heavy Industry were selected as comparable companies for special materials.The average PE value of the company’s 2019 forecast is 21.66, it is estimated that the majority of special wood after the market is ranked 27.57-35.84 ppm, corresponding to an issue price range of 16.73-21.75 yuan, corresponding to the 18-year deduction after returning to the mother’s net profit range is 22.81-29.66 times, corresponding to the 19-year return net profit PE range is 19.98-25.97 times. Risk reminders: (1) The company is sensitive to fluctuations in the purchase prices of main raw materials scrap and alloys, and the downstream market demand is highly correlated with the macro economy.(2) The current market quotation has entered the game of information validity, and guard against 10% high price rigidity to eliminate risk.