Category: Money Tips Date: 2007-07-02
Investment Highlights: 2007, high-speed railway construction into the outbreak period! Ministry of Railways planning, "Eleventh Five-Year" period of China's railway infrastructure investment will reach 1.25 trillion, is "15" four times during the period. The 2007 investment 256 billion yuan, growing 64.84% year on year in 2006, formally opened the "Eleventh Five-year" high-speed railway construction in the prelude to the climax!
Benefit from the high-speed railway construction, the company high-speed railway bridge bearing business showed rapid and sustained growth in the next five years, the business model from the current "street business" to upgrade the main "road under the business" oriented. "Eleventh Five-Year Plan" the building of 9800's passenger line (almost all of the 200 km / hour or more high-speed rail), of which over 75% of the roads need to bridge support ,07-10 years of a four-year orders will be larger than 12.0 billion, the company will receive 20-30% of the market share, total 24-36 billion, the company conservatively estimated annual average of 07-10 years of stand alone high-speed rail project orders on more than 600 million yuan. Road under the business (rail infrastructure related) will replace the road operations (locomotives and vehicles related to damping components and system integration products, that the current business) becomes an operational focus, the company is expected to become the great development of high-speed railway to benefit the worst of the A shares company! -50% 0% 50% 100% 150% 200% 250% 300% 350% 1-203-204-205-206-207-208-209-2010-2011-2012-201-20 times and new materials in Shanghai and Shenzhen 300 .. more than 1000 kilometers of high-speed rail service this month by inviting tenders - a powerful catalyst for the short-term stock price increases. The Ministry of Railways to the early end of this month will include the Guangzhou-Zhuhai, Wuhan-Guangzhou, Fuzhou-Xiamen and other 8 passenger intercity passenger rail line and into the concentration of the tender, involving high-speed rail bearings contract bid is expected to reach 2.5 billion, the company is expected to receive about 500 million high-speed railway bridge support contract (07,08 for delivery in use).
The company's main business, elastic components, engineering plastic and other next few years will be maintained more than 20% average annual growth rate. Other high-speed railway-related business (except for high-speed railway bridge support), such as CA mortar, expansion joints have good growth. Integrated expects the company's EPS respectively, 0.31,0.52,0.76 year 07-09 million.
Short-term valuations higher, but in the railway section dynamically in 2009 the lowest PE and PEG of the most attractive, it is recommended to buy a reasonable valuation of 21.2-22.8 yuan! In view of high-speed railway construction to give a good 5-10 years the company's future growth, we believe that 08,09 PE-fold, respectively 40,30 more reasonable, corresponding to a reasonable valuation of 21.2-22.8 million.
