High-speed rail fasteners made of domestic core components are still short

In 2011, China’s railways will arrange 700 billion yuan for capital construction, of which the high-speed railway is one of the highlights. For domestic high-speed rail industry supporting enterprises, this is undoubtedly a feast.

According to the data of the Ministry of Railways, the total investment of high-speed rail is composed of 40% to 60% of infrastructure (including bridges, tunnels, and station construction, track building, etc.); EMU purchases account for 10% to 15% (including complete vehicles, axles, and (Firmware, control devices and other components); the remaining part of the proportion of 25% to 40% (including communications, signal and information engineering, electricity and electric traction power supply, etc.). In the future, EMU vehicle manufacturing companies and EMU parts manufacturing companies will obviously benefit from the purchase of high-speed vehicles. It is estimated that in 2010 the national railway investment will be 100 billion yuan, which will be used to purchase high-speed trains and other locomotive and rolling stock equipment, which can generate up to 1 trillion yuan in pulling effect on related industries.

Domestic high-speed rail fasteners have been used to realize 100% domestic Orient Securities machinery industry analyst Zhou Fengwu believes that starting from 2008, the railway investment will begin to fully enter the harvest period in 2011, and high-speed rail EMU procurement will enter the peak period.

On January 12th, Tu Zhiqing, deputy general manager of Jinyi Industry (601002.SH), said in an interview that at present, domestic fasteners and fasteners required for domestic high-speed railway production have achieved 100% domestic production and have independent intellectual property rights. At present, domestic 25% high-speed rail fasteners are supplied by them.

"Mainly still have to lay out in advance and seize the opportunity of the country to stimulate domestic demand." Tu Zhiqing told reporters that as early as the beginning of the listing in 2007, Jin billion industry began targeting the domestic high-speed rail market. "Of course, we also have a foundation. We were once the only successful bidder for fasteners on the Qinghai-Tibet Railway."

However, in the case where the entire machine field basically completes import substitution, the independent innovation of high-speed rail core components is still a shortcoming of most domestic enterprises. In the so-called "high-end auxiliary equipment" field, Chinese manufacturers still need to strive to catch up with the pace of high-speed rail. At the same time, they will face the competition of international suppliers.

An industry expert who asked not to be named pointed out to reporters: “This is because the equipment capabilities of domestic companies are indeed inferior to those of people. On the other hand, the Ministry of Railways and some other countries are also import-dependent, and of course, this is mainly due to For safe and reliable choices."

The expert told reporters that the key components needed for high-speed rail operations, such as wheels, axles, and bearings, have not yet been manufactured. Among them, bearings used in EMUs with a speed of more than 160 km/h currently require 100% imports.

This gives foreign investors more opportunities. Previously, Alstom and China’s Ministry of Railways had just signed a long-term strategic cooperation agreement. The two sides will expand new cooperation on the basis of cooperation between existing EMUs and electric locomotives, including intercity vehicles, high-speed trains, locomotives, and other vehicles. Intercity trains, high-speed rail signal system cooperation.

Since high-speed rails are consumables, the average life expectancy is only 2.5 years. With the launch of high-speed rail projects in China, localization of high-speed rails will be the dream of domestic companies continuing to chase.

1. The market share of high-speed rail fasteners has increased to 30%-40%. The company is a leading company in China's fastener industry. Its main products are ordinary fasteners, automotive fasteners and railway fasteners. After several years of development, the company has obtained the qualification of the Ministry of Railways for on-track certification and has become a major supplier of domestic high-speed rail fastener systems. As a leading enterprise in the field of high-speed railway fasteners, the company has obvious technological advantages, and its market share has increased from 20% to 30%-40%.

2. Benefiting from the construction of high-speed railways, high-speed rail fasteners will have a vast market in the future. According to the "Medium-and-long-term railway network plan (adjusted in 2008)", by 2020, more than 16,000 kilometers of passenger dedicated lines will be built. According to current construction progress and planning, the length of China's passenger dedicated lines will probably reach 2020. 24,000 kilometers. From a short-term perspective, as of now, China's high-speed railways are operating at 6,552 business kilometers, and the operating mileage is the highest in the world. The high-speed railway currently under construction is still more than 10,000 kilometers. It is estimated that by 2012, China will build high-speed railways. With more than 40 lines, the total mileage will exceed 13,000 kilometers. According to 200 yuan per set of fasteners, a rough calculation, the future high-speed rail fasteners still have at least 240 billion market space.

3. The high-speed rail business began to be released this year. At present, there are sufficient orders and future performance is guaranteed. The company has high-speed iron fasteners 10 million sets of production capacity, the current order is full. In 2008, the company received a certificate issued by the Ministry of Railways to satisfy the independent research and development of fasteners for passenger dedicated lines. In 2009, high-speed rail fasteners began to gradually contribute to the performance, and the high-speed rail part of the year achieved revenue of nearly 700 million yuan. We expect that the high-speed rail business will be fully released this year. Since the fourth quarter of 2009, orders for high-speed rail fasteners held by the company have reached nearly 2 billion yuan, of which orders for contracts signed in the first five months of 2010 reached 900 million. High-speed rail fasteners are generally used in the track laying phase of railway infrastructure. From the perspective of the progress of high-speed rail construction and the status of the industry chain and the strength of the company itself, the company's follow-up order-taking capability will continue.

4. Auto fasteners are eye-catching, and ordinary fasteners are starting to pick up. The company is a major manufacturer and exporter of fasteners in China. In addition to high-speed rail fasteners, the company also produces ordinary fasteners and automotive fasteners. Ordinary fasteners are mainly exported to the United States, Europe, Japan, South Korea and other countries. In 2009, due to factors such as the international economic environment and trade frictions, the company’s ordinary fastener business has contracted. After experiencing a downturn in 2009, it has now entered the market. The rebound of the bottom rebound is expected to have a growth rate of more than 10% this year. In addition, the company's automotive fasteners performed well. Last year, it achieved a revenue of about 100 million yuan. This year's revenue from this business is expected to double, and it is expected that it will still achieve more than 30% growth in the future.

5. Optimized business structure and improved profitability. It is expected that the company's revenue from high-speed rail fasteners will exceed 50% this year. The company's ordinary fasteners have a gross margin of about 10%, while high-iron fasteners have a gross margin of 20-30%. The optimization of business structure will greatly enhance the company's overall profitability. It is expected that the company's consolidated gross profit margin in 2010 will reach about 22%.