G Jidong 000401 will usher in a strong rise in waves it is recommended to focus on Money Tips

Category: Money tips Release Date: 2007-02-26

Source: Securities Times Author: Zhang Rui

As the Beijing Olympics is approaching, the Olympic Games construction project entered a phase of accelerated, while the face of rare historical event, 7,000 billion yuan in the Olympics economic aggregate, so that the construction of the Beijing Olympic Games-related companies ushered in an unprecedented great historical opportunity for development. G Jidong (000401) as the country's largest cement producer is one of the largest high-grade cement in North China suppliers, the convening of the 2008 Beijing Olympic Games will allow the company into the ultra-conventional development of the gold cycle. At present, the company's leading product "stone shield" brand of cement in the Beijing area more than 20% market share, regional monopolistic advantages is quite prominent. According to the plan, by 2008, Beijing, urban road construction and upgrading 318 kilometers, the new urban rail transit (new eight subway lines) to reach 138 kilometers; the next few years, in urban transport investment will reach 900 billion. Investment required over a large number of cement, will make the company's cement sales volume growth spurt, the company will maximize the sharing of the Beijing Olympic Games a huge "cake."

In addition, G Jidong covered by the "Three North" market facing the region around Bohai economic circle, Binhai New Area and the Caofeidian industrial zone development, the construction of Binhai New Area into around 300 billion, as the "Eleventh Five-Year Plan" in the re - The heavy, heavy investment has brought more than give the company a broad market. We have noted the company's main business the first half of this year 1,233 million, an increase of 23.31%, net profit rose 61% in the first half sales situation is generally good, a total sales of cement and clinker 7.4298 million tons, the company products in North China region is at a shortage situation. With the Caofeidian and Tianjin Binhai New Area in the second half of this year launch its significant infrastructure projects, G Jidong as the region's largest cement supplier, has initially signed a number of large single-supply contracts. The company predicted that sales in September to the winter situation is expected to better than any year in history, so the company valuation levels have the potential to significantly improve.

The Unit is currently less than 4 yuan share price compared with the other cement stocks, have the advantage of outstanding parity. Recent stock trend is very moderate, in full adjustment, has been patiently building up a new channel, Thursday rapid upside unit volume marked amplification, indicating the unit in the full warm-up, will usher in a strong increase in wave , it is recommended to focus on.

Historical Information: G Jidong (000401): Foreign M & A at the bottom of blowout June 23, 2006

Source: Kim Merrill Lynch Investment

G Jidong (000401): The company is the country's largest cement manufacturer, one of main Portland cement manufacturing, sales, leading product is "stone shield" brand 42.5R, 32.5R high-quality low-alkali portland cement, leading cement industry is well deserved. The company by leaps and bounds in recent years show trend, new projects put into operation one after another, a relatively large increase in production and sales. 2005 annual report, the company producing cement 10.4244 million tons, an increase of 26.60%; the company realized main business income of 230,894.35 yuan, an increase of 25.91%; production and operating activities net cash flows generated 50,867.00 million, an increase of 29.06%. Not long ago, the company a notice in the first half of 2006 will significantly increase the performance more than 50%, showing a gratifying growth.
The convening of the Beijing 2008 Olympic Games will provide a significant opportunity for development. Jidong Cement Company is the largest high-grade cement in North China supplier, with more than 20% in the Beijing market share, faced with unprecedented opportunities for development. From the investment scale, the next five years, urban transport investment will reach 900 billion. By 2008, the Beijing urban road construction and upgrading 318 kilometers, the new urban rail transit (new eight subway lines) to reach 138 kilometers. Investment required over a large number of cement demand will directly enhance the economic benefits of Jidong Cement.
In September 2005 the sale of shares of subsidiary shares to a wholly-owned subsidiary of Heidelberg Cement Heidelberg Cement Holdings Hong Kong company, Heidelberg Cement of Germany the world's fourth-largest cement manufacturer, through the introduction of world-class strategy investors to realize a powerful combination, complementary advantages for the company to further improve the conditions provided a strong take-off.
The secondary market, the report showed first quarter of 2006, including the China growth, Hing Wah and a number of investment funds largest holding, indicating that large organizations a high degree of recognition of their investment value. The Unit has been long-term care funds, stocks, after a brief ex change callback turnover shrinking Xipan obvious signs. Thursday to pull the bottom of the Yang Xian, Jin Cha average re-issue buy signals, market outlook is expected to blow out the bottom of the market, can be great concern.