Category: Money tips Release Date: 2007-03-26
At present we give the power industry's rating remains "neutral", but we hope that investors do not be paralyzed by the current situation of the industry. In fact, the leading enterprises have begun to Sudden Impact, prior to a turnaround in the industry, investment opportunities have emerged.
Leading enterprises are expected to stabilize the use of a few hours before in the industry recovery. Shutting down small thermal power installed capacity will help ease the supply pressure, to reduce the competition with large units; operation mode of the implementation of the new generation capacity will tend to large-scale and efficient allocation of units, while the leading power companies, the fundamental by a large and efficient power assets unit composition. Changes in these industries would be very helpful to the leading power companies to use a few hours before the industry stabilized in order to achieve early recovery.
Current performance of the overall market thickened, open space for future development. Central Financial Work Conference referred to the strong support of direct financing, including large enterprises and groups, the overall IPO market. The power industry many companies have a small listed companies, the characteristics of large groups, and the main business line is very suitable for the whole market, thus improving the governance structure and make better use of capital markets. We believe that the overall market for listed companies to bring two benefits: First, current performance thickening. In general, the overall listing of the program will take into account the interests of the old shareholders in the equity expansion, financing amount, earnings per share to balance several aspects of change to the performance of current thickening return to old shareholders. Second, is to open space for future development of listed companies to improve the sustainable management of listed companies and growth sustainability.
By analyzing the price-earnings ratio of the three major driving factors (growth prospects, the investment rate of return on equity ROE, and cost) and comparison of all of the power level of price-earnings ratio of listed companies, we found that the leading power companies should be entitled to higher than the industry average price-earnings ratio, but the reality is that These companies are generally lower than the industry average valuation levels, has been significantly underestimated.
We further believe that the different leading power companies should also be given a reasonable price-earnings ratio of different. Especially those with the overall market and the Group's asset quality is expected to enhance the future growth prospects of the company, should be given a higher valuation. Taken together,
the focus of our recommended companies to vote for the country electricity, Yangtze Power, Huaneng Power International, Shennengyuan. SDIC Electric Power (600,886 market, information, reviews, search): State the power to vote according to forecast the performance of existing assets, their value is significantly undervalued at the same time, the company listed as a whole, there are still expectations.
China Yangtze Power (600.9 thousand quotes, information, reviews, search): Although the underestimation of the extent of their little, but because of our performance forecast does not adequately take into account the acquisition or the overall market expectations (for the time being measured in accordance with acquisition of two generating units), so the actual on the Yangtze Power's actual results will be better than our forecast.
Huaneng Power International (600011 market, information, reviews, search): We expect the Huaneng Power International will be the leading industry leader in the recovery, the company through cost control, net profit for most companies take the lead in 2006 increased.
Shennengyuan (000027 market, information, reviews, search): An overall listing of thickening of the company's current performance is more important is to expand the company's future development. But two points listed in the Shennengyuan publication of the whole period, the market has not been found to underestimate its intrinsic value.
