Category: Money tips Release Date: 2006-02-28
Source: and News
Rapid pulled up early
Transaction reasons: It is learned, G blond in the first half product sales have been over 10 million tons, annual sales volume is expected to be breaking through the 20 million tons, which will further widen the gap with domestic counterparts, the company will continue to maintain a modified plastics industry leader to the status.
Investment Highlights:
1, the company is the world's products cover the types of modified plastics industry's most complete one of the enterprises is currently the largest and most complete modification of plastics products manufacturing enterprises, with flame-retardant resins, strengthening and toughening resins, plastic alloys, functional home degradable plastic beads and 5 series more than 60 varieties of more than 2,000 brands of products, the leading market share in the forefront of place among China's market, competitive advantages are obvious.
2, the company has the domestic first-class R & D facilities, with state-level enterprise technical centers, post-doctoral research fellow workstations and workstation platform for technology research and development.
3, the company developed a new flame-retardant thermoplastic resin products of the R & D and industrialization projects won the State Scientific and Technological Progress Award.
Risk Tip:
1, the company prices of major raw materials by the rising international oil prices affect long-term hovering at a high level, the company's main business costs caused by certain pressure.
2, due to the company's products market positioning in the high-end market, the company faced competition mainly from abroad, and strength of large enterprise groups, some of our competitors also have the upper resin production plants, their collection of capital, technology, brand and resource advantages to the company's product sales caused great stress.
Investment advice: The company is stable reshaping the leading high-growth enterprises, capacity expansion, market development to promote rapid growth performance of the operation on the bargain-hunting interest. The first reference to target a 21 yuan.
Historical Information: G Blonde (600,143): the next two years to maintain the performance of growth accelerated a "buy" investment rating on June 4, 2006 Source: Hai Tong Securities institutional clients a recent visit to promote G blond hair, and once again, and G blond hair executives exchange. June 5 -6 9, I visited Shenzhen, Guangzhou, a total of 13 institutional clients, institutional investors collected some of the queries for the G blond; and on June 8 and G blond secretaries to directorate, chairman of the exchange, it issues of concern to institutional clients asked the company's executives view. That is, below the main issues raised for the customer to make answer.
About the company and downstream customer bargaining power. As the company's downstream customers are well-known large enterprises, the company's bargaining power to become one of the main issues of concern to investors. According to our further communication and the company's clear that we pass the cost of the company's ability to pre-judgment is a fundamental right. Namely: because the company product quality, and the supporting ability, the downstream business is not easy to replace supplier to downstream customers so the company has a strong bargaining power. According to the company and downstream customers signed a contract, when the plastic raw material price increases to a certain extent, companies can raise prices and downstream consultation, and downstream customers to the company's requirements generally do not reject a reasonable price increase. Enterprises are still a part of its commitment to raw material prices, and downstream customers in order to maintain long-term cooperative relationship, and commitment to this part of the enterprise's own costs, but also by improving the process can be basically carried out by means of savings. This is the company's gross profit margin to be stable for many years the main reason.
About the company's industry barriers to entry. China has thousands of modified plastics manufacturing enterprises, most of the production of low-end material, the surface is not high trade barriers, but the modified plastics industry characteristics determine the barriers embodied in the formula of its R & D capabilities and marketing capabilities combined. This type of barriers to allow enterprises to enter this industry is very easy, but to do large-scale, making high-quality, it must have a strong technical strength and market development capabilities. Blond their own structure and makes it strong ability to CTSP talent, while the concentration of talent combined with the effective management methods, will produce an excellent R & D capability and marketing capability. It is also our home many other modified plastics industry was never able to go beyond the main reason for blond.
The company's future will have more original product appears. Company had raised funds mainly invest in a PS-like materials (mainly for home appliances field), this year polyolefin materials (used in cars, home appliances area) sales of more than PS type of material the company main product categories. In the future it will gradually develop some original products in order to enhance the company's gross margins and product competitiveness. On the original range of products, will still avoid areas of expertise of foreign enterprises (such as PP, PC, nylon, etc.), but no large-scale foreign companies to choose some new types involved. The company has a number of technologies for these products, we expect around 2010, revenues increased to 100-150 billion the size of the time, original products in the company's profits will begin to occupy an increasing composition ratio.
Performance this year, maintained a rapid growth. Performance this year, is expected mid-year report net profit grew to reach 50%, full-year results can also maintain this rate of increase exceeded our previous expectations. According to information provided by the company executives present, Guangzhou, Shanghai and the two bases to maintain full capacity, and a greater number of backlog orders. Is a great demand as customers, the company is based on customer class (A, B, C grade) to selectively supply as much as possible to ensure A-level customer needs. This situation makes the Guangzhou and Shanghai, three second stage of construction may be accelerated, leading to accelerated growth performance of the next two years.
With regard to financing matters. Shanghai blonde base, as well as two construction projects in Guangzhou headquarters building will be the future of the company four years to major capital expenditure items. As the company's investment in fixed assets for production is small, so in respect of financing, the company's advice is to try not to take equity financing, instead of using credit, corporate bonds and other forms needed to solve its funding problems.
Increase in earnings estimates. We have slightly increased the company's profit forecast, expects diluted earnings per share of 06-08 years were 0.78,1.05,1.33 yuan, according to 2007 mid-term results of measuring the company a reasonable price 21 yuan, maintaining a "buy" investment rating on .
The major uncertainties. A relatively large amount of accounts receivable cash flow caused by pressure; the current tax incentives exist to change.
