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Huixinlong refractory: the most complete refractory manufacturer
Zhengzhou huixinlong refractory
In the future, the company will actively develop refractories for cement kilns while stabilizing the position of refractories for glass kilns.
The company is the most complete manufacturer of refractory materials in building materials industry, whose products are mainly used in glass kilns and cement kilns. It is also the only enterprise in China that has the ability to provide complete sets of supply for glass kilns and cement kilns. At present, the company has a production capacity of 20000 tons of fused zirconia and corundum, and a production capacity of 5100 tons of fused alumina. It occupies 30% - 40% of the middle and high-end market of refractories for glass kilns, ranking first in China. In the future, the company's strategic focus is to actively expand refractories for cement kilns. The company has formed a high-grade amorphous refractory production capacity of 100000 tons / year; Henan Ruitai has two environmentally-friendly alkaline refractory production lines with a capacity of nearly 40000 tons, and the third production line has been under construction; Zhengzhou Ruitai has an annual capacity of 100000 tons of alkaline and aluminum silicon refractories; Zhejiang Ruitai has an annual capacity of about 15000 tons of aluminum silicon refractories, realizing the rapid development of production capacity.
The company has the advantages of brand and quality, technology and R & D as well as the background of major shareholders. The performance and quality of the company's products have reached or close to the international advanced level. The products are positioned in the middle and high-end market, with high reputation and good brand effect. As a listed company controlled by China Academy of building materials science, the company has the advantages of technology research and development, and is also the centralized unit of China building materials and refractories industry standard formulation and revision technology, refractory branch of China Building Materials Federation and other units, with the industry advantages of mastering the latest industry trends. In addition, the company has the background of China Building Materials Group, and has certain background advantages in striving for new customers. At the same time, there are many glass and cement enterprises under China Building Materials Group, which will provide greater support to Ruitai in the future expansion of cement field.
There is still much room for the development of refractories in the future. In terms of refractories for cement kilns, since the replacement period of refractories for cement rotary kilns is 8 months to 1 year, and the rotary kilns are the most frequently used and replaced parts in the whole cement production line, there will be a large space for only the replacement part in stock in the future. Taking 2010 as an example, we calculated that the stock replacement volume of refractories for cement kiln in 2010 was about 860000 tons, the new line usage was about 560000 tons, and the total usage of refractories was about 1.4 million tons; by the end of October 2011, the new production line corresponding to the usage of refractories was nearly 200000 tons. In terms of refractories for glass kilns, the structural adjustment and product upgrading of glass industry will promote the development of refractories for glass kilns, especially alumina.
Valuation and investment advice. We expect the company's operating revenue in 2011-2013 to be 1.303 billion yuan, 1.557 billion yuan and 1.805 billion yuan respectively; EPS to be 0.60 yuan, 0.70 yuan and 0.86 yuan. 25 times of PE will be given to the company, with a six-month target price of 15 yuan, and the company will be rated as "overweight".
Catalyst of stock price: 1) the price of zircon sand and industrial alumina, the main raw materials of the company, decreased significantly; 2) the demand of downstream industries such as glass and cement increased rapidly.
Risk tip: 1) the price of raw materials rose sharply; 2) the growth rate of downstream demand was lower than expected.