Category: Money tips Release Date: 2006-03-02
Source: Far East Securities
Wuhan Holdings (600,168): The company is a large-scale water supply enterprises in Wuhan, industry monopolistic advantages highlighted. Water Plant Improvement Project is completed, significant cost reductions, achieving better efficiency. Company's net profit increased 142% the first three quarters continue to maintain rapid growth.
Companies affiliated Zongguan water, Pak Hok mouth water Hankou in Wuhan, a city water supply in the region dominated by the Japanese water capacity of 1.3 million tons, has a monopoly in Hankou District, Wuhan 92% of the water supply, the scale advantage of a very prominent, At present the company's water business No competitors, its regional monopoly characteristics significantly. Companies affiliated Zongguan the transformation of water over the past few years, water technology and facilities and equipment have been comprehensively improved and updated, the cost of a substantial decline in water quality of water supplies significantly increase their competitive advantages more pronounced. April 1, 2006, the company's main regional city of Wuhan City, the price of water rose from 0.71 yuan per cubic meter to 1.1 yuan, the price adjustment, residents will implement water metering water ladder. 2006 half-yearly net profit of the company rose as high as 238.9 percent, while the present price of water will significantly on the performance of the company will pick explosive growth. With water consumption in recent years, substantial growth in Wuhan City, the company's ultra-conventional development will be more worth the wait.
Water companies operating at the same time, the strong involvement of the sewage treatment industry. Sewage treatment industry is a regional monopoly, the company is currently No sewage treatment business competitors and the company in Wuhan Water Affairs with the support of sewage treatment in Wuhan, market-oriented process, to continuously expand its market share steadily, adding new profit growth. Acquisition of Wuhan Shahu Wastewater Treatment Plant is the construction of Wuhan City, running the first two sewage treatment plants, with 5 million tons of daily sewage treatment capacity, service range of 12.8 square kilometers area, serve a population of up to 30 million, the regional monopoly advantage is quite prominent. Wuhan Wastewater Treatment industry has great potential, Wuhan municipal government clearly put forward in the next five years to make Wuhan urban sewage treatment rate reached 70% of the target, which means the company will enjoy the enjoyment of hundreds of billions of high monopoly profits.
China is a scarcity of water resources of the country, as China's population increases, per capita water resources will continue to decline, and hence from the promotion of water conservation, improve drinking water quality, ensuring safe water and other considerations, there is some price of tap water the upside.
The company converted two clear 15,000 cubic meters of water reservoirs have been built in hand operation; two 160 thousand cubic meters, sedimentation tanks, filter project is 160 thousand cubic meters civil works have been completed, can be put into operation in early September. Company controlled by the tunnel construction company building the Yangtze River Yangtze River Tunnel project is progressing well and will become the company's new profit growth point. Sustainable development of companies potentially very strong.
The secondary market, the stock of net assets of 3.15 yuan each, the current share price is also only 3 yuan more than great value for money. At present the Unit has completed the three bottom turnover a moderate amplification, show that part of the funds are being steady stream of bargain-hunting approach. Monday, the stock opened lower income-yang, afternoon is very likely start pulled the main market, cause for concern.
