Category: Money tips Release Date: 2007-01-10
Source: Hua Securities Author: Tang Xin
Thursday in Shanghai and Shenzhen stock index continues to hit new high, blue chips are still the mainstream of the market arrived in columns, especially the two blue-chip, in the context of first-line heavyweight finishing, have appeared more substantial upside to attract the market's attention! In fact, from long-term perspective, although the points are not necessarily the end of the Shanghai index rose, but in the short term, due to finishing or too big, from a psychological perspective, there is greater pressure, technical modifications can not be avoided, therefore, the main fund, the adjustment of position is an inevitable choice, lighten up some of the rallies at the same time the value of overvalued stocks, low PE stocks will naturally be their Opening object! This also explains why the second-line blue chips today cause of the outbreak, low price-earnings ratio will be the next period of time the main focus on the object! As a result, funds from the mainstream to consider keeping this part focus on the proposed 000,983 Xishan Coal and Electricity Power, China's largest coking coal production base, the current dynamic price-earnings ratio less than 10 times, a low price-earnings ratio of the blue-chip, which is trading at a clear bottom, by the the main financial concern may be greater, it is worth focusing on.
The nation's largest coking coal base, undervalued!
Company is the 520 key enterprises in China, one of the nation's largest coking coal production base, has been listed 34 key advantages of Shanxi Province, one of the main products fat coal and coke, is the international protection of non-renewable nature of the scarcity of coal mining The main users of Baosteel Group, Shougang Group, Anshan Iron and Steel and other major domestic steel companies and some of the well-known large-scale coking enterprises in the country of similar products, rank first in market share. According to statistics, the company's main fat coal and coke coal recoverable reserves of about 1.332 billion tons, the Group Ida area of 3276 square kilometers, to maintain reserves of 32.6 billion tons, the existing 25 pairs of mines and 16 coal preparation plant with an annual production of coal breakthrough 60 million tons, coke output of more than 4000 million tons. After the delivery of coal production in 2010 reached 100 million tons, and strive to coking coal production accounted for half of the country. Company is also vigorously develop coal chemical industry, and from the base of willow coking coking plants, etc., extending coal - coke - Gas - Delivery of coal - electricity - aluminum - wood two industrial chain to realize the comprehensive development and utilization of coal resources, and the future is extremely bright! Worth noting is that the current A-share market listed companies, the major coal types, the major mines and mining rights owned by more than the listed issuer to obtain free of charge from the Corporation, or way into the group in order to fund its assessment of the value of the coal mining rights far below the current standards promulgated by the Shanxi Province, coal and mining rights market revaluation of the company to face value, Xishan Coal and Electricity is no exception, the company has recoverable reserves of about 1.332 billion tons, is expected to be 104 years of mining life, which corresponds mining rights guesses ran valued at about 1.443 billion yuan per share, corresponding to the value of 1.19 yuan and mining rights, so the intrinsic value of the potential great! In addition, the steel industry against the backdrop of a gradual warming, as a raw material supplier of the coal industry stocks were also expected to trough, the prospects are extremely good!
Technological innovation - is becoming a development guarantee!
In the development of the road, Xishan Coal and Electricity advantage not only by virtue of coal reserves, with most also actively make use of technological innovation, technical superiority wanting a foothold in the domestic market! At present, the technological innovation is becoming the Xishan Coal and Electricity Group, the new economic growth point. In the past three years, a total of 1,500 reported completion of technology projects, of which focus on self-innovation projects 46, 18 patent applications (two patents, utility model patents, 16), through the National Identification Project 13 (the leading international level four, the domestic advanced level 9). Through technical achievements, can increase the effectiveness of 500 million yuan each year. Also work into the company's technical innovation, "the responsibility of legal persons" and examination system, has revised and improved "science and technology project management" "science and technology incentives" and so on. Technology development costs through the implementation of tax policies to increase arrived to strengthen the supervision of the project and process of project efforts, in 2005 alone to enjoy five units of 31 million yuan in technology development fee waiver, more than 520 million in direct tax relief. They have also launched a triple system certification and QC group activities, to achieve better results. 2 QC team which won the National Outstanding QC team title, 8 QC team has been excellent QC team title in Shanxi Province. Implementation of the measuring apparatus weeks inspection system, Zhou inspection rate of 90%, and weekly inspection pass rate of 95%. Implement the building of a conservation-oriented society the spirit of the organization to carry out energy conservation campaign, for coal, electricity, oil, water consumption control and supervision and inspection, energy output fell to 4.8 million tons of standard coal. In addition, the Xishan Coal and Electricity also because its a wholly-owned intellectual property rights and technological achievements of the application, making a comprehensive roadway costs 200 yuan / m; while a technical achievements to make tons of coal costs 16.84 yuan, production increased by 10%, Resource recovery rate of 15%. Can be seen that technological innovation is becoming the Xishan Coal and Electricity of sustainable development as a powerful protection, to imagine there is large room!
Price-earnings ratio less than 10 times, large capital loot!
The secondary market, from the point of view the recent sector rotation, banking, steel and real estate became the three major hot spots, supporting the only reason for its rise in the value of undervalued, price-earnings ratio is significantly lower; In fact, the price-earnings ratio of coal plates are also been not high, it is highly likely to be the main financial target for the next one! In particular, 000,983 Xishan Coal and Electricity Company in 2006 first three quarters of industry earnings per share reached 0.63 yuan, while the stock is only 7.63 yuan, the dynamic price-earnings ratio less than 10 times the horizontal comparison with other coal stocks, but also in being underestimated, out of the value of regression the probability of a great! Trend on the upside this week, after two heavy volume over the past two trading days the stock poised to carry out adjustments, from the morphology point of view, technical adjustments have been basically in place, the market outlook is expected to once again broke out upside, it is worth investors to focus on.
