Future High Speed Rail Fastener Industry Leading Trend Forecasting

By Frbiz Tian

General Fasteners export some recovery, but profitability has not yet resumed. High Speed Rail fastener into the delivery of the second half of the peak, high-speed railway construction will delay delivery of warm down. Orders from the current view (in hand orders for nearly 20 million), the company is expected to deliver high-speed rail fastening more than one billion yuan this year. The next two years to deliver the high peak of iron, localization rate of the upgrade will allow the company high-speed rail fastener orders will grow 20% next year. High Speed Rail fastener prices have come down this year, but still more than 25% gross margin.

Started to grow significantly this year, automotive fasteners, annual growth is expected to be around 100%; automotive fasteners production, making the products significantly enhance the profitability of the estimated net rate of nearly 20%, not less than iron buckle Parts of the profits. As our country on the European fastener the early effects of anti-dumping, and promote domestic production of automotive fasteners process, the product may become the iron fastening growth after another, but there are uncertainties.

Comments:

1. High Speed Rail fastener market share has increased to 30% -40%. Company is a leading enterprise in China fastener industry, the main product for the general fasteners, automotive fasteners and rail fasteners. After several years of development, the company has obtained the Ministry of Railways of the Road, certification, and has become a major high-speed rail fastening systems supplier. As the field of high-speed railway fasteners leading enterprise technology companies have obvious advantages, market share has been from 20% to 30% -40%.

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2. Benefit from the high-speed railway construction, high-speed rail fasteners future market is vast. According to “long-term Railway Network Plan (2008 Revision),” 2020 years ago, the construction of passenger line for more than 16,000 km, while the process of building and planning under the current term, to 2020, China’s passenger traffic is likely to reach the length of line 24,000 km. The near term, as of now, China put into operation for the 6552 business-kilometer high-speed railway, business mileage ranks first in the world, and the present high-speed railway is still under construction, more than 10,000 kilometers, is expected to 2012, China will build a high-speed rail Line 40 and the total mileage to more than 13,000 km. Each fastener 200 according to calculation, rough calculation, at least the next high-speed rail fasteners are still 240 billion market space.

3. High Speed Rail business release this year, the current order adequate and secure future results. The company has high-speed rail fastener production capacity of 1 million units, now orders full. Company in 2008 was awarded to meet the Ministry of Railways Passenger fasteners certificate of independent research and development, 09 high-performance iron fasteners contributions gradually, then high-speed rail part of the nearly 7 billion in revenue. We expect high-speed rail service will be fully released this year. Since the fourth quarter of 2009, the company holding the high-speed rail fasteners order has nearly 20 million, of which five months of 2010, orders for a signed contract to reach 900 million. Generally used in high-speed rail fastener rail infrastructure, laying stage, from the high-speed rail construction process and the industrial chain, and the company’s own strength, the company’s ability to follow-up orders will continue.

4. Eye-catching performance of automotive fasteners, general fasteners began to rise. Fasteners Corporation is a major production and export enterprises, in addition to high-speed rail fasteners, the company also produces common fasteners and automotive fasteners. Common fasteners exported the United States, Europe, Japan, Korea and other countries, in 2009 the international economic environment and trade frictions and other factors, the Company’s common fastener business contracted, the downturn experienced in 2009 after it had reached the bottom out recovery channel, this year there will be more than 10% growth. Another good performance automotive fasteners, 1 billion in revenue last year or so, this year is expected to double the income of the business is expected to continue to achieve future growth rate of more than 30%.

5. Business optimization, improve profitability. This year’s high-income share of iron fasteners will be well over 50%. General Fasteners Company’s gross margin was 10%, while high levels of iron fasteners can reach 20-30% gross margin. Optimization of business structure will significantly enhance the company’s overall profitability. Expects consolidated gross margin in 2010 can reach 22%.

Hengshui, China Railway Construction Engineering & Rubber Company is mainly engaged in railway, highway, rail transportation, municipal engineering, water conservancy and other infrastructure, supporting product development, manufacturing, sales and service. Products related to plate bridge bearing, bridge bearing basin, bridge expansion joints, water stop, embankment protection, roadway, tunnel water, reservoir seepage, waterproofing, steel structures and other ten series, nearly 3000 specifications variety, its domestic market share of engineering rubber over 50%.

At present, the company’s total assets reached 500 million yuan, annual production capacity of 1 billion yuan, the comprehensive strength in the national forefront of the industry. In the high-iron products, Hengshui, China Railway Construction Engineering & Rubber Company has introduced and developed independently YZM, TGPZ, KTPZ, CKPZ Railway Bridge bearings, expansion joints dedicated high speed railway, highway with water basin seismic tension bridge bearings , self-adhesive polymer waterproof materials, lost foam casting a dozen patents, the product’s main rival for the era of new material.

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