G standard (600302): another bright pearl in the machinery industry

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The market is quietly changing. In the narrow range of the index, stocks are extremely active. In particular, some of the up-front funds are involved in obvious stocks. Once they have been fully accumulating, their outbreaks are quite large. If you use some of these themes, It started to go crazy. Due to the high expectations of foreign capital mergers and acquisitions, the machinery and equipment manufacturing industry has also been favored by market funds in the near future. G Sanyi, G Shenji and Zhonglian Zhongke are all similar products. The G standard (600302) we analyzed today is also a bright pearl in the mechanical equipment industry. As the leading enterprise of industrial sewing machines in China, the company is a stable industrial sewing machine leader. Its products have been exported to 125 countries in Europe, America and Southeast Asia. There is a more obvious monopoly advantage. According to our forecast, the company's 2006 earnings per share will reach 0.38 yuan, while the company's current share price is only 3.51 yuan, the value is relatively obvious underestimation, since the stock has changed since the resumption of trading, there has been significant incremental capital intervention, the trend has also formed The slow cattle push up trend, according to the current market situation analysis, the stock may accelerate in the near future, investors can pay close attention to the current market conditions.


First, the industry has ushered in a new round of development opportunities


With the accelerated transfer of the global sewing equipment industry to China and the rapid development of the domestic textile industry and the need for technological upgrading, China's sewing equipment industry has ushered in a new round of development opportunities. The global sewing equipment industry has accelerated the transfer of opportunities for domestic industrial upgrading and expansion of exports. After several rounds of adjustment and industrial transfer, the global sewing equipment industry has become the world's leading sewing machine production base, accounting for about 50% of the world's total output. At present, with the transfer of high-grade sewing machines and special machines, the domestic sewing equipment industry has been upgraded, and industrial sewing machines have been developed in the direction of high-grade, multi-variety and serialization, with the proportion of mechatronics products with high precision, flexibility and intelligence. Big. Although China's sewing machine exports account for 40% of the world's trade volume, the transaction volume only accounts for 5% of the world's (US$6-7 billion). Therefore, industrial upgrading will help broaden the export growth space of China's sewing equipment. According to the light industry industrial development plan, by 2015, China's sewing equipment exports accounted for 70% of international trade volume, and 50% of international trade volume, truly becoming a world's sewing equipment production power.


Second, the leading domestic industrial sewing machine


The G standard (600302) has achieved stable performance since its listing. From the listing in 2000 to 2005 (predicted), the main business income and net profit increased by 82% and 98% respectively, but the company's share price did not maintain the same. Growth, and behind the overall market, from 2000 to 2005, the company's secondary market share price fell 55%. From the simple analysis results of the above data, the company's undervaluation has been established. In the first three quarters of 2005, the company's earnings per share was 0.24 yuan. It is estimated that the EPS in 2005-07 will be 0.30 yuan, 0.38 yuan and 0.45 yuan respectively. Considering the brothers' standard of the participating companies, they will start to enter the industrial development direction of oil-free direct-drive sewing machines. It is expected that the recovery of investment income reflected in this year will promote the substantial increase in the total net profit growth, so we give the rating of “overweight”.

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