Investment rating and valuation: give an "overweight"

Investment rating and valuation: give an "overweight" rating. We expect the company's net profit attributable to parent company 2013-2015 was 048 million, 068 million and 087 million yuan in the next three years, net profit compound annual growth rate of 31%, 2013 - 2015 corresponding to EPS of 0.55 yuan, 0.78 yuan and 1.00 yuan. Long dimension, the company is the domestic auto parts quality targets under the import substitution; short-term horizons, because the old and new products quickly bang, the next few years will significantly enhance the growth performance, we give overweight rating. OAP products into the harvest period. OAP product performance received OEMs favor, the future will continue to enhance penetration, our estimates 2015 global market size of nearly 10 billion OAP. Prior to the OEM market OAP INA and Leiden, as almost monopoly of foreign manufacturers, the company had eight years of research into the accumulation, OAP products already have the ability to supply large quantities of the next three years will enter the fast delivery stage; we expect 2013-2015 South bearing OAP were achieved sales 400,000, 1,000,000, 1,800,000 units, bringing revenues were 028 million, 070 million, 126 million yuan. Alternative to enhance the high-end needle Taper bearing double room for growth, gradual application of hybrid expansion needle bearing market. We believe that needle roller bearings with light weight, small size and other characteristics of domestic consumption in the future upgrades and energy saving in the background, will continue to enhance its penetration; hand localization rate of needle roller bearings are also steadily , but still lagged behind the overall industry, the future still import substitution space; addition, energy progressively more stringent environmental requirements in the context of hybrid passenger cars is expected to accelerate the start-stop system applications, the core components of the enhanced starter motor applications will increase substantially corresponds to a single motor needle bearing demand will be doubled. New customers and new areas of support the company's continued growth in sales of traditional needle roller bearings. With Denso, Remy and other pioneering new customers as well as ABS, throttle and other applications to further expand, we expect the company's sales 2013-2015 needle bearings will achieve 084 million units, 1.05 million units, 1.25 million units, compared corresponding income was 180 million yuan, 225 million yuan and 268 million yuan.