Category: Money tips Release Date: 2006-03-07
With the Dongfang Electric Group "listed as a whole," the prelude to slowly pull the group's listed subsidiary of Dongfang Electrical Machinery Company's stock in the secondary market as many investors sought after goal. From mid-December last year, in two months time, Dongfang Electric shares rose from 24 yuan to 26.17 yuan.
5 yuan of net assets of support 46 RMB price
When people inadvertently opened the company's earnings report, but surprised to find that, as a high-priced shares of stock were entering the ranks of listed companies, Dongfang Electrical Machinery Net assets per share was only 5.02 yuan (three quarters of 2006 data).
Even more surprising is that, it is that the net assets of 5.02 yuan per share, even created in the three quarter profit of 1.39 yuan per share, the astonishing record. Dongfang Electrical Machinery follow suit before the three-quarter earnings level, the company's full-year 2006 net profit as high as 1.85 yuan per share, net capital gains rate as high as 36%.
Analysts pointed out that, according to the forecast net profit of Dongfang Electrical Machinery, and the average market price-earnings ratio basis, Oriental Motor's share price is not high. Because, even under a conservative price-earnings ratio of 25 times the calculation of its share price should also be up and down in the 46 RMB. However, this level of profits than people think they can be maintained for how long?
S East, the performance of pan mythology
Dongfang Electrical Machinery performance myths investors can not help but think of Dongfang Electric Group, another subsidiary - S East pot.
In fact, S East, pot also star in 2006 stock performance. The company's 2005 annual report, S East, pot at the time of only 3.94 yuan per share net asset situation, creating a net profit of 2.01 yuan per share. If we consider the end of 2005, when the company's net assets have been included in year profit, excluding profit that year, its net assets yield more than 100%.
For the 2005 performance of surge, S East, pan's management at the time explained: "As power projects around the country have launched, the demand for power generation boilers, two years after the order has been routed, and many parties to pay in advance the way ordering Order so that the size of the company's assets increase, a substantial increase in net profit. "By mid-2006, S East, failing to keep the pot high growth performance, its earnings per share during the first half of 2006 reached only 0.76 yuan, down 25% over the same period.
"The overall market," the expectations of
Zhang, senior market participants note that investors in the company's largest shareholder, "listed as a whole," the expectations is to maintain the Dongfang Electrical Machinery an important reason for the high price.
According to recently released S-dong pot share reform program, Dongfang Electric Group will share the outstanding shares of Dongfang Boiler S shareholders get 2.5 shares of the 10 pairs of prices, while share reform is completed, will be directed through the issuance of its holdings of A shares of Dongfang Electrical Machinery Shares of convertible securities, to sell an unlimited pot S East, the conditions of the outstanding shares of the shareholders to issue convertible offer one share for every S East pot can be replaced with 1.02 shares of the outstanding shares of the shareholders side motor A shares.
Dongfang Electrical Machinery and Electric Co. to the East through the 367 million shares issued A shares, equivalent to about 8.9 billion of funds for the purchase of S-Dongfang Electric Group holds a 74.44% stake in Dongfang Boiler to deduct pay for S East pot after the share reform on the price of shares and Dongfang Steam Turbine 100% stake. Convertible completion of the acquisition, Dongfang Electric Group, Dongfang Electrical Machinery achieved through the overall market.
Zhang Hutchison analysis, according to the above "listed as a whole" program, Dongfang Electrical Machinery's total equity will increase to 817 million shares, net assets increased to 109 billion yuan, net assets per share increased to 12.5 yuan. Zhang remember speculated that the completion of "overall market", the Dongfang Electrical Machinery Zhuanzeng very possible to spread the net assets per share and stock prices lower. However, the injection portion of the assets of listed companies is also has a high rate of return is still an unknown.
