NEWS BRIEFS
Gem-Year Industrial Finds Success with High Speed Rail Fasteners

Analysts think that Gem-Year’s sales of automotive fasteners and fasteners for high-speed rail in the next 2-3 years will continue to grow, Fastener World reports.

While the China-based fastener manufacturer’s product applications include many markets, half of its current income is from the sales of fasteners for high-speed rails. 

Gem-Year’s orders for high-speed rail fasteners topped RMB$1.9 billion (US$285 million) this year, according to the China Railway Department. 

The construction of high-speed rails is expanding in China. By 2015, the length of high-speed rails in the country will reach 16,000 meters and grow to 24,000 meters by 2020.  

“It is predicted that the present orders can already cover the income of RMB$1-1.2 billion in 2010 and RMB$1.2 billion in 2011,” according to Fastener World.

Gem-Year’s EPS in 2010-2012 is expected to be RMB0.3, RMB0.4, and RMB0.53, respectively. The reasonable stock price is expected to be RMB8.9-10.42. ©2010 GlobalFastenerNews.com