Data:2009-12-12 2:34
Category: Money tips Release Date: 2007-02-24
Fenghua Hi-Tech (000,636 market, information, advice, more) business scope includes capacitors, resistors and other components, products, main products MLCC production in the domestic enterprises ranked first. As the industry boom degrees better, the company in 2006 quarter 1 to 3 main business income of 1.3 billion, an increase of 43%. Compared with the Japanese company Murata Manufacturing ahead of market demand, raw material development to achieve 10 years of planning and preparation, Fenghua Hi-tech R & D and deployment of raw material powder are still far from the Japanese giant, which restricted their products high-end technology and competitiveness of the improved.
Fenghua Hi-Tech failed to re-finance under-investment and growth rates lag behind its competitors in Taiwan, MLCC's global market share in 2000, dropped to fifth place in 2005 to seventh place. The majority shareholder in 2006 in order to cover the stock and fixed assets of listed companies 350 million liabilities. In recent years as the company is expected to cover the major shareholders not to sell 1,000 acres of high-tech development zone land, but a return each year from Kae power is only about 100-200 million, the proceeds of bonded fixed assets to enhance the performance of listed companies is not obvious. Companies face market competition, enterprise management mechanism and a variety of risk factors, including the operating mechanism is the relationship between power and business value of investments of the important factors. If in 2007 the company greater clarity of property rights and incentive mechanisms for implementation, company is expected to enhance the vitality and momentum, thus reversing the declining competitiveness and profitability in previous years, low levels of the situation.
GF Securities analyst Zhou Jin assumptions, three kinds of state in 2007 under the company's earnings per share were 0.11 yuan, 0.19 yuan and 0.31 yuan. Thus, compared with 2005 and 2006, corporate net profits there may be major changes for the better. The current risk factors and their impact on the operating performance is hard to determine precisely; the other hand, the current share price 3.5 per close to their net asset value per share, and the risk of the substantial drop in corporate profits is not significant. Taking all these factors to give a "hold" rating.
