The company's main business is titanium and titanium alloy manufacturing, which is different from other non-ferrous metal smelting. The profits of titanium industry chain are concentrated in processing links, and raw materials can be seen everywhere. Processing titanium dioxide or sponge titanium requires certain technology, and the highest technology is titanium alloy and titanium plate, which are mainly used in high-end fields such as chemical industry, aerospace, military industry and ocean. Baoti Co., Ltd. has the core technology, the existing technology is leading in China, and it also has the strength to enter the top five in the world. Within one year, there are no domestic competitors in the high-end field (the only potential competitors are western titanium alloy and titanium plate technology, and the rest titanium enterprises are engaged in rough machining and finished product reprocessing).
There are two reasons for the company's sluggish performance in 2009, one is the high-priced raw material procurement in 2008, the other is the investment during the construction period and the high cost transferred by major shareholders.
Opportunity: the steady growth of a company's main business income shows that sales are smooth, and the problem is only in the profit rate link; The second company's additional issuance projects will be put into production one after another this year, and the production capacity will double within three years.
With the recovery of large aircraft projects and the international aircraft market, the performance elasticity is high, and the current downturn is a good opportunity for long-term intervention.