Southwest Securities Co.Ltd(600369) maintain China Tungsten And Hightech Materials Co.Ltd(000657) buy rating: the annual performance is slightly lower than the expected target price of cutting tool leader in the future, 20.10 yuan

According to the research report released on January 28, the purchase rating of China Tungsten And Hightech Materials Co.Ltd(000657) (000657.sz, latest price: 13.13 yuan) was maintained, and the target price was 20.10 yuan. The reasons for rating mainly include: 1) the production and sales of main products are growing rapidly, reducing costs and increasing efficiency and improving the company’s performance; 2) The company is the leader of CNC cutting tools in China and the global leader of PCB cutting tools, with the advantages of cemented carbide industry; 3) The reform of state-owned enterprises continued to deepen, with great potential for performance release. Risk tip: manufacturing investment has fallen sharply; The company’s capacity expansion is lower than expected; The competition pattern of the industry has deteriorated.