Category: Money tips Release Date: 2007-06-30
Investment Highlights:
Only shipbuilding Shipbuilding Group listed company, the biggest beneficiaries of development of the industry. In August 2006, Premier Wen Jiabao chaired a State Council executive meeting examined and adopted in principle, "shipbuilding industry and long-term development plan" to vigorously support the shipbuilding industry, China's shipbuilding industry will usher in a golden period of 10 years. A-share market as the only shipbuilding companies, Guangzhou Shipyard International will be a great development of shipbuilding industry the biggest beneficiary.
Order has been routed to 2010: orders for the fourth quarter of 2006 is still hot. The fourth quarter of 2006, Guangzhou Shipyard International recently signed 15-16 boats, about 60 million deadweight tons, setting a single-season then ship a new high, single-vessel prices have continued to lock the high (4000-4500 million), the current handheld shipbuilding orders 55 total contract amount of approximately 1.7 million dwt, remained best level in history, the company in 2010 orders have been signed over.
Transformation dock production, sub-plant construction will allow the company production capacity by 30%. The improved dock capacity from 10000 to 50000 dwt dwt ship, and was put into operation in October 2006, 2007,2008, the company's production capacity will increase by 20% -30%, an increase of 3 -- 4 vessels / year production capacity. Company's 2008 production goal is to produce 16-17 boats, one Handymax tankers weight 1.4 million tons, 1-1.1 million tons of sub-weight, so that in 2008 demand for production capacity of sub-hull 160,000 tons / year or more, while the company's current manufacturing capacity is only 10-14 sub-tons / year.
Therefore, the Guangzhou Shipyard International plans to invest 40 million manufacturing plant in the Zhaoqing section construction, production capacity of 5-7 million tons / year, so the total production capacity will meet the production requirements section.
Longxue shipbuilding base in long-term would be injected into a listed company. Longxue Shipbuilding Base started construction in 2006, is expected to put into operation by the end of 2008, became profitable in 2011, capacity 200-300 million tons. The base into the listed company is only a matter of time.
We expect the company from 2006 to 2008 earnings per share were 0.51 yuan, 0.80 yuan, 1.02 yuan. By January 15 closing price, from 2006 to 2008 respectively, the dynamic price-earnings ratio of 39.25 times, 25.02 times, 19.63 times. Taking into account the characteristics of high growth performance of the company, we believe that given the company in 2007 to 30 times 2008 25 times more reasonable, that is a reasonable price for the 24-25.5 yuan. So give the company "recommended" rating.
