Investment Highlights:
The company is the largest and most powerful Nd-Fe-technology manufacturing enterprises, total capacity of about 9000 tons, the global market share of over 10%. Our products are mainly used in wind power, hard drives, cars, mobile phones and other consumer electronics, industrial motors and other fields. Company's products are mainly high-end, 60% -70% exports, in 2009 orders down by the financial crisis, the current recovery as demand, order has emerged full recovery.
NdFeB is the best in performance, permanent magnet materials, NdFeB motor manufacturing, high efficiency, lower power consumption, light weight, coming in the automotive, compressors, wind turbines and other areas of application will be increased significantly.
In 2008 the world's total installed capacity of wind power 120 million kilowatts, the total installed capacity in 2020 is expected to reach 12 million kilowatts, of which 20% if the use of direct-drive permanent magnet motor, NdFeB demand for 18,000 tons per year, far exceeding the 2008 level of 4,000 tons .
In 2009 China's air conditioners, refrigerators, washing machines, the total output is expected to reach 200 million units. If the next three years, of which 30% of the DC inverter technology, the need NdFeB 11,000 tons per year. With the government subsidizing the high-performance home appliances, the application of NdFeB in the market has already started.
2009 global vehicle sales for the 62 million, by 2014 will reach 80 million, if the proportion of new energy vehicles to reach 15% of the annual demand for NdFeB reach 18 thousand tons by 2020, consumption of up to Nd 45 thousand tons.
Company is the leading domestic industry, the ability to benefit from the stronger NdFeB demand growth forecast 2009-2011 EPS and 0.36 for 0.18,0.29. We give the company "recommended" investment rating, target price of 11.6 yuan, 40 times the corresponding 2010, 2011, 32 times PE.