Data:2009-12-12 2:34
Category: Money tips Release Date: 2007-04-02
Hailigufen (600,619 market, information, reviews, search) has announced its two investment programs: (1) 12 million U.S. dollars investment in new small-scale central air-conditioning compressor production line, the initial size of an annual output of 100,000 units. (2) Joint Shanghai Aerospace Industry Corporation co-funded 100 million yuan (Hailigufen invested 50 million yuan), a new 1.5 million refrigerator compressor production line.
With the compressor industry, the company's technical advantages, the first large-scale production of five-power dual-rotor rotary compressor, mainly for residential central air-conditioning, the product price has obvious competitive advantage. The initial size of 100,000 units of production lines will be put into operation in August this year, in addition, the company plans additional investment in 2008, in the year to achieve a 50 million capacity scale. The company has completed its stake in a subsidiary of Zanussi refrigerator compressor holdings to achieve 50 percent stake, not to finance the merger, just enjoy the return on investment. Although the production and marketing company the size of the industry for the highest one, but the design capacity of only 6 million units, and therefore lower depreciation costs; also plans to readjust the industrial structure of small-power compressor production transferred to the labor-intensive areas, to achieve lower labor costs; while the recent copper a marked decline in prices also increased raw material costs this year, reducing the burden earnings growth expectations. In addition, the current "Highly" the proportion of own-brand sales have jumped to Jiucheng, effectively reducing the use of the trademark charges.
Li believes the analyst at China International Capital Corporation, despite the formation of capital and technical barriers to trade high degree of concentration of the compressor, but the expansion impulse led to excessive supply and demand fell, depress corporate pricing power, coupled with the high prices of raw materials embarrass the cost burden of , resulting in Hailigufen profit decline. Limited investment in new capacity will enable even more tightening of the monetary funds, the company intends to ease by issuing stocks or bonds, financial crisis. Given the current valuation is still relatively high level, maintaining a "neutral" rating.
