Diamond tools have great opportunities for future development
October 08, 2018
After 20 years of development, China's diamond tool industry is gradually becoming mature. At present, its major downstream industries are in a stage of rapid development (China has now become the world's largest stone production and processing country; China's construction industry also exceeds 20% per year Growth, etc., together with the acceleration of the process of the world's diamond tool industry's transfer to China's industries, will face greater development opportunities in the future (we expect the domestic market's demand to increase by 15-20% in the next three years).
Boshen Tools, as a leading enterprise in diamond tools in China, has obvious advantages in terms of scale, technology, sales network, etc., and has a relatively high gross profit margin. We expect Bossin’s performance to increase significantly faster than the industry’s overall level. The increase will be at the upper limit of industry growth, slightly higher than 20%.
In addition to diamond tools, Boshen tools will see more growth in the next three years. We believe Boss Tool’s main focus in the next three years is: high growth of power tool products (as labor costs increase, power tool products that increase labor efficiency will gradually increase demand); the development of high-speed rail market (2-3 years Post-Boshen tools may enter the localization market for high-speed rail brakes; the slow recovery of developed countries will bring opportunities (providing Boss tools with low-cost M&A opportunities; anti-dumping pressure will be reduced, and Boshen tools have passed the worst ). Boshen Tools is in the stage where the scale effect shows the most obvious, and the income growth will be fully reflected in the profit growth.
