The most firepower source is the integration platf

Liyuan Hydraulic: the integration platform of the equipment manufacturing assets of the first aviation group

Liyuan Hydraulic: the integration platform of the equipment manufacturing assets of the first aviation group

but in general -14 China Construction machinery information

Guide: in 2006, the growth rate of China's machinery industry was as high as 29.57%, effectively driving the upstream and downstream demand. Among them, construction machinery increased by 34.17% and hydraulic and pneumatic parts increased by 40.31%. It is expected that this high growth trend will run through the whole Eleventh Five Year Plan period. The company's main hydraulic components of the core components column

in 2006, the growth rate of China's machinery industry was as high as 29.57%, effectively stimulating the upstream and downstream demand. Among them, construction machinery increased by 34.17% and hydraulic and pneumatic parts increased by 40.31%. It is expected that this high growth trend will run through the whole "Eleventh Five Year Plan" period

the company is mainly engaged in plunger pump/motor, the core component of hydraulic components, and the downstream is mainly supported by cranes, excavators and other construction machinery. Under the catalysis of the group's asset injection, the compound growth rate of EPS during the "Eleventh Five Year Plan" period is expected to be 50.48%

at present, the company is mainly engaged in plunger pump/motor, which has a wide space to replace imports. At present, the domestic medium and high-end import dependence is as high as 70%. The company has a military background. The first piece of plastic sent ashore will become an important milestone. It has a solid technical foundation and a complete quality assurance system, and there is a broad market space for import substitution

the actual controller of the company, China aviation industry first group, has positioned the company as an integration platform for the equipment manufacturing assets of China aviation industry first group. First, through private placement, it will be loaded into heavy machinery related assets such as Guizhou Airlines Group, AVIC investment, Jinjiang company, and then the equipment manufacturing assets will be integrated within the framework of China aviation industry first group

catalyst: private placement asset injection and further integration of the company by AVIC 1

risk factors: the integration of military assets will inevitably involve confidentiality issues. In the process of the integration of the company, avic-1 group still has uncertainties in communication with the Commission of science, technology and industry for national defense and the China Securities Regulatory Commission; Military enterprises' ability to control costs and period expenses is relatively weak, and they lack the initiative to update products to adapt to the market, which will bring uncertainty to the company's future performance growth

based on the above factors, we give the company a valuation level of 0.8 times peg and 40.38 times PE, corresponding to the estimated EPS share price of 16.96 yuan in 2008 after dilution and 32.30 yuan in 2008 before dilution. At present, there is a great controversy about the share price positioning, but considering the positioning of the company's equipment manufacturing asset integration platform of avic-1, we give an increase investment rating