Sinomach Precision Bearing Department is growing rapidly and is optimistic about the field of superhard materials in the future

Sinomach Seiko has achieved remarkable results in its bearing business in the first half of 2023, achieving revenue of 622 million yuan, a year-on-year increase of 19.63%. Among them, special bearings and their parts achieved revenue of 464 million yuan, a year-on-year increase of 26.85%; while technology development and testing services also achieved revenue of 147 million yuan, a year-on-year increase of 12.54%. The company has made significant progress in the field of large (extra large) bearings for heavy machinery, including shield machine bearings and wind power bearings. In recent years, the company has restarted the wind power bearing project and launched in-depth cooperation with Dongfang Electric (600875). In 2022 alone, the company's wind power bearing business achieved operating income of nearly 80 million yuan, mainly focusing on yaw pitch bearings.Looking forward to the next few years, with the increase in demand from the wind power industry and the accelerated market penetration of the company's spindle bearings and other products, the company's wind power bearing business is expected to develop rapidly and become another important pillar in the bearing sector in addition to military special bearings. business. In addition, according to news in the field of superhard materials, the World Lab-grown Diamond Promotion and Trading Center has officially signed a contract to be built in Zhengzhou High-tech Zone in August 2023. The company's superhard materials business will achieve full industry chain coverage, and the coordinated development of upstream and downstream businesses will help the company develop high-end products such as functional diamond materials and semiconductor dicing knives, laying a solid foundation for the company's future development.
Forecasts show that the company's operating income is expected to reach 3.04 billion yuan, 3.281 billion yuan and 3.88 billion yuan respectively from 2023 to 2025, and the net profit attributable to the parent company will also reach 296 million yuan, 357 million yuan and 437 million yuan respectively. The corresponding price-earning ratios are 19.82 times, 16.44 times and 13.41 times respectively. The company has a significant market position in the fields of special bearings and superhard materials.