Category: Money tips Release Date: 2006-05-15
Source: Zhejiang, Li Jie
Wednesday broader market continues to shock rise, Stock Quotes eye-catching performance. Strength of the market structure has been further extended, from the recent financial and non-ferrous metals and other types of hair blue-chip power can be seen, the mainstream funding has played a most significant role in promoting. Blue chips also will be the greatest engine for the current round of Quotes, G Lutai A (000726) as the textile industry of the blue-chip blue-chip variety, is bound to an outbreak of a new round of limit-strength.
One of the highlights investment in the textile industry, the leading competitive advantages are obvious
Yarn-dyed Fabric company is Asia's largest production base, the world's largest manufacturer of Yarn-dyed, over 80% of products exported. COM's advanced level of production of fine count spun knot-free yarn is currently the world's most advanced spinning technology; "wave of cross-linked non-iron cotton fabric ammonia" is the first development;'s shirt in the sewing technology, high-grade on the right to use patents owned moldings with a very strong international competitiveness. The company has the industry's most complete industrial chain: long-staple cotton cultivation and processing, and liquid ammonia finishing matching Com spinning, dyeing and finishing technology of liquid ammonia, shirt production, cost advantages are obvious, the company's ammonia finishing technology has a certain industry barriers , the company under the premise of the technical advantages of building high-scale expansion is equal to the industry's entry barriers.
Investment Highlights of the two, performance is extremely good to maintain a continuous growth in
Excellent performance of the company, the first half of 2006 sales revenue of 1.3 billion yuan, up 19.2%; main business profit of 360 million yuan, an increase of 2.2%; net profit of 170 million yuan, an increase of 4.0%; to achieve earnings per share of 0.41, Gross margin fell in the first half, but rebounded in the second quarter. 2005 4-quarter gross margin from 27% to 2006 Q2, 28.4%, indicating that the company has a strong cost control. Corporate Finance in good condition, adequate cash flow from operating activities. In the first half cash flow from operating activities per share, 1.4 yuan, an increase of 116%, is 3.4 times the earnings per share, cash flow is very healthy. The company has strong core competencies, the traditional textile industry in China has abundant labor resources, market competition, full, industry average gross margin of about 10%, net profit margin of only 2.5% of GDP, the Lutai years in a row the company was able to maintain 30% gross margin, net profit margin of more than 5-6 times the industry average.
Investment Highlights of the three, out of the industry, the plight of chase the international market
From the fundamental point of view, the company's most difficult period is now over, with the July 2006 the gradual release of Yarn-dyed production capacity, the company's financial position and the dividend is expected to be effective in improving the company's most difficult period has passed. As with strong international competitiveness and the global production of Yarn-dyed first industry leader, 2007,2008, the company is expected to enter a new round of growth. Lutai A super-international competitiveness, the next three years will continue to maintain rapid growth. Lutai A breakdown of the industry as a Yarn-dyed Fabric is a global leader, which accounted for 12% -13% global market share, If only the 100% cotton Yarn-dyed for the raw materials, production capacity, Lutai market share rises to 17% -18%.
Investment Highlights of the four, is bound to an outbreak of serious underestimation of the value of a rebound
Its first-half earnings per share reached 0.41, at the forefront of the textile industry, the stock was relatively low, compared to the early gains were, the unit clearly lagging behind the general trend. Change from the stock list of major shareholders before the point of view, led by Fortis Bank QFII, as well as major insurance organizations competing to grab chips, compared to stock before the share reform, the stock is very limited gains. Also makes the body does not appear involved in the realization of a good opportunity, while the volume shrinkage of further demonstrate agency Xishou mentality. Good fundamentals even the possibility of catalytic sector bargain-hunting Masukura recently begun to turn the unit obviously stronger Wednesday pulled a straight-line intraday trading, institutions pulled this program has started to actively look at high-line market outlook.
