China'S First: Policy Oriented &Nbsp; Industry Leader

At present, it is urgent for China to optimize energy structure, promote energy saving and emission reduction and ease energy shortage in China. The government has also introduced some policies to support it. Increasing the proportion of clean energy such as nuclear power in the power structure is one of the effective ways.

We recommend that investors focus on nuclear power equipment: China is the first.

The company is the earliest and largest manufacturer of nuclear pressure vessels in China, and is also the largest company with the largest number of orders.

The company has about 80% domestic nuclear reactor pressure vessels.

In terms of nuclear Forgings Market, the company occupies about 80-90%, forging the world's first million kilowatt nuclear power evaporator cone cylinder with a diameter of 5.75 meters, and took the lead in undertaking the manufacturing task of the world's first third generation nuclear power plant AP1000 nuclear island full set of forgings.

At present, the company has mastered the manufacturing technology of the million kilowatt class nuclear pressure vessel, has the corresponding manufacturing capacity, and is making the first domestically produced third generation nuclear power plant AP1000 nuclear pressure vessel.

The company has obtained the qualification certificate of PWR, low temperature reactor and fast neutron added reactor pressure vessel issued by the National Nuclear Safety Bureau.

The company has the capability to manufacture nuclear power products in accordance with the requirements of the ASME standard and quality system. Meanwhile, the company's ability to manufacture nuclear power products has been internationally recognized.

We expect the company to add an order of 3 billion 500 million yuan for nuclear power equipment in 2010.

In the next two years, the sales revenue of metallurgical equipment will gradually decrease, while the sales revenue of nuclear power equipment and large casting and forging will increase substantially.

At present, China has a full handheld contract order, and the main production facilities are kept at full load.

We estimate that nuclear power equipment and large castings and forgings may become the main engine for the company's future profit growth.

We expect that the contract amount of the company is not close to 17 billion yuan, of which nuclear power equipment and large casting and forging orders are estimated to be more than half.

We believe that the competitiveness of the company in nuclear power equipment and large casting and forging is at the leading level in the world and world-class.

China will benefit from the policy that our government vigorously promotes economic restructuring and the development of strategic emerging industries.

We expect the company's sales revenue in 2010 to grow by 18% compared with the same period last year, with sales reaching 10 billion 800 million yuan, and the net profit in 2010 is expected to increase by 30.7% over the same period last year, with net profit of 1 billion 550 million yuan and earnings per share of 0.24 yuan.

Investors pay close attention to sustainable development.