Category: Money tips Release Date: 2006-08-14
Event: Qian Luntai 18, issued a public notice, to be non-public offering of 6,000 million new shares, issue price of about 4.3 yuan
In our opinion:
Qian Luntai The non-public offering to raise funds is expected to raise 258 million yuan, the total investment, "an annual output of 400,000 high-performance all-steel radial truck tire production line technological transformation projects." The project put into production, you can add all-steel radial truck tire 400,000 / year of production can be.
Qian Luntai wheel truck radial tires and mechanical engineering research and development of tire technology is the leading domestic level, the company's future development strategy will focus on heavy-duty radial tires and engineering market segments. The company already has 1.5 million and 200,000 heavy-duty radial tire OTR tire production capacity in a market with two segments in the industry forefront. The targeted implementation of the project will allow the company additional truck tires and engineering in the field of competitive position tire has been consolidated. .. By the main raw material of natural rubber, synthetic rubber and carbon black prices continued to rise the impact of tire industry profits in 2006 fell sharply. In the future, the basic raw material prices are likely to enter the global downward trend, the domestic auto industry, the rapid growth driven by favorable conditions, the tire industry's future profitability will rebound; with capacity expansion, Qian Luntai next three years, profits are expected to grow steadily.
In the non-public offering is completed, the maintenance of Qian Luntai 0.27 per share for 2006-2008 yuan, 0.35 yuan and 0.48 yuan Forecast ,2006-2008 three-year net profit CAGR of 35%.
And Aeolus, tire rubber, the Yellow Sea stock and other comparable companies in the industry, compared Qianlun Tai PE and MB ratios relative valuations in the tire industry's most low-end, to maintain "overweight" rating.
New Project to consolidate a competitive advantage truck tires
Qian Luntai The non-public offering to raise funds is expected to raise 258 million yuan, the total investment, "an annual output of 400,000 high-performance all-steel radial truck tire production line technological transformation projects." The project put into production, you can add all-steel radial truck tire 400,000 / year of production can be.
Qian Luntai former rubber factory was established in Guizhou in 1958, is the focus of the country's earliest professional tire manufacturing facility. After many years of technology accumulation, the company radial truck tires and mechanical engineering tire wheel developed technology is the leading domestic level, all kinds of tire production capacity to 4 million on sales of global enterprise ranked No. 38 and the top ten domestic enterprises.
Combination of tire competition in the industry trends and its own technical advantages, Qian Luntai future development strategy will focus on heavy-duty radial tires and engineering market segments, the recent capital spending mainly for these two types of products, the building expansion. The company already has 1.5 million and 200,000 heavy-duty radial tire OTR tire production capacity in a market with two segments in the industry forefront. The targeted implementation of the project will allow the company additional truck tires and engineering in the field of competitive position tire has been consolidated.
Qi Wen raw material prices and capacity expansion of a favorable profit growth
By the main raw material of natural rubber, synthetic rubber and carbon black prices continued to rise the impact of tire industry profits in 2006 fell sharply. In the future, the basic raw material prices are likely to enter the global downward trend, the domestic auto industry, the rapid growth driven by favorable conditions, the tire industry's future profitability will rebound; with capacity expansion, Qian Luntai next three years, profits are expected to grow steadily.
Maintain Overweight
In the non-public offering is completed, the maintenance of Qian Luntai 0.27 per share for 2006-2008 yuan, 0.35 yuan and 0.48 yuan Forecast ,2006-2008 three-year net profit CAGR of 35%.
To January 17 closing price of 5.39 yuan terms, Qian Luntai 2006,2007, the dynamic price-earnings ratio in 2008 were 20 times, 15 times and 11 times, the dynamic book value, respectively 1.3 times, 1.2 times and 1.1 times. And Aeolus, tire rubber, the Yellow Sea stock and other comparable companies in the industry, compared Qianlun Tai PE and MB ratios relative valuations in the tire industry's most low-end, to maintain "overweight" rating.
Risk Warning
Tire rubber raw material price changes mainly dramatic, rubber prices forecast future trends affecting the accuracy of company profits.
Qian Luntai the fourth quarter, operating expenses and management costs of rapid change, the actual cost of the fourth quarter of 2006 took place, may be a greater difference between predicted values; the same time, the balance of accrued expenses in the first three quarters reached 34.6 million yuan, the ending balance changes will affect the whole annual profit forecast accuracy.
