Data:2009-12-12 2:34
Category: Money tips Release Date: 2006-03-08
Yi Hua Wood (600,978 market, information, reviews, search) in 2006 the company realized main business income of 1.157 billion yuan, an increase of 47.12%; net profit of 173 million, an increase of 65.73 percent, earnings per share were 0.48 yuan, slightly higher than than expected.
99% of products exported each year to maintain more than 50% increase in growth of future performance mainly from the export business. Faced with the trend of appreciation of the yuan, the company to lower the costs to ensure profitability through space, but it will be wood, metal parts, the impact of rising freight each year. Wood City is currently undergoing an equipment arrangements, the company expects will soon be put into use, and is prepared to finance the construction of wood City 2. The company's ability to match production and sales capabilities will be a litmus test. For the furniture industry, the skilled workers, design capacity, equipment layout is reasonable, supporting the ability lean management is more important than capacity expansion. The company is a wood City, for various reasons over the delay in scheduled production capacity in this regard also prove that the company still need to improve.
Shenyin analyst considers it desirable to China's Lin Zhen and other domestic businesses are mid-range furniture, which fields a very competitive business, it is difficult to enjoy America grams of pure high-end furniture, high gross margin. In addition, the high cost of furniture stores as well as off-site high maintenance costs will also restrict the company's profitability. 07,08 expects annual earnings per share were 0.61 and 0.77 yuan in 2007 reached 28 times the dynamic price-earnings ratio, we recommend investors to consider the risks associated with, careful rating of "overweight."
