Event:
As part of our recent research on Kunming Machine Tool, we communicated with management concerning the company’s latest progress and future prospects.
Comments:
Primary products have a clear advantage. Kunming Machine Tool is the leading domestic manufacturer of large-/mid-size precision boring and milling machines. In 07, its core products — vertical and horizontal boring and milling machines — made up 85% of machine tool revenue, showing significant growth. As the first producer of horizontal boring and milling machines in China, the company ranks second in the common series with a full spectrum and excellent quality. Although the company didn’t get its feet wet in the area of vertical boring and milling machines until the late 1990s, it showed impressive performance and raised its market share year by year. In addition, there are no other competing manufacturers of NC boring and milling machines in China. Our projections of 08-10 revenue for horizontal machines are Rmb554m, Rmb720m and Rmb9m; for vertical machines: Rmb687m, Rmb962m and Rmb1.25b.