Category: Money Tips Date: 2007-01-27
Source: Galaxy Securities Author: XU Xiao-Yang
Blasting industry to promote the development of dual-positive
Relevant state departments in June 2005 and January 2006 China has twice raised its base price of explosive products, making China the industry profitability markedly enhanced blast. The first half of 2006, civil explosive sector core revenues grew 37%, gross profit increased by 116.6% higher than the corresponding main income of the oil and chemical industry 31.8%, 28.2% of the total profits of the overall growth. COSTIND Ju-Sheng Lin Explosive Materials Supervision and Control Bureau, said: Eleventh Five-year civil explosive sector reform and development during the Eleventh Five-Year Plan unequivocally my people bursting business from the current 404 to adjust into less than 200. Foster a number of companies across the country in scientific research, production, sales, demolition services, as one of the large-scale enterprise groups. G Thunder (600,985) is China's largest production base of water, plastic explosives, is expected to become bigger and stronger in this round of consolidation, it is worth focusing on.
A unique and vast development of the industry
Blasting Equipment Industry Association, according to Chinese statistics, the water company's leading product sales accounted for about plastic explosives, plastic explosives, national water 40% of total sales, production, sales volume ranking first in the country. Company is through the Ministry of Science and Technology Torch High-tech Industry Development Center of the State Torch Program identified key high-tech enterprises, high-tech enterprises in Anhui Science and Technology Commission identified, the company produced Explosive Materials products are sold to 21 provinces, municipalities and autonomous regions, and some exports. Company's existing products have entered the mass production stage, and their water-leading products such as plastic explosives, won the national silver medal honor the country's leading technical content, water, plastic explosives, the production scale ranks first in the country, security, performance is better than the original DuPont Company similar products, explosive performance is better than the other varieties of explosives. At present, the country is being carried out by the new large-scale rural infrastructure and the construction of major transport energy, which are explosives would provide more room for market space.
Industry consolidation company strong Hengqiang
COSTIND supporting the superior and eliminating the inferior, to industry restructuring, especially mergers and provinces to implement incentive policies. China Explosion industry are "small, scattered, low" phenomenon, in large part restricted corporate safety in production. COSTIND adhering to the "government guidance, enterprise voluntary" principle, China will take measures to promote re-adjustment of explosive sector. COSTIND through macro-control and market mechanisms to play a role in promoting the company through joint, merger, bankruptcy reorganization of assets, so that the allocation of resources to the advantage of enterprises are concentrated. Meanwhile, the National Defense Science, Technology on mergers to take concrete incentives for mergers in the province, and can give some incentives to the provinces merger, then the greater reward efforts. Plans to the end of 2008, reduce the number of manufacturing enterprises for more than 100 operating companies to reduce 500 more than the number of manufacturing enterprises by the end of 2010 further reduced to 200 less than the number of enterprises and further reduced to less than 800-1000. As the industry leader G thunderous blast China will stand out in this round of consolidation.
Quotes have been ahead of the advent of accelerated eruption
The Unit is currently priced at 5 yuan multi-level, the price is not high is also a small-cap stocks, the industry is more distinctive. Current Liutong Pan 53.28 million, the total share capital of just 90 million. G thunderous concussion early post-consolidation share reform, the formation of bottom stabilization trend. Since then shares steadily climbed, the amount of amplification can be mild, while the process of finishing up the unit has the typical characteristics of heavy volume and the callback Su Liang, the main characteristics of capital Kongpan obvious. Shares of several recent years, under wear line, in the years of repeated shocks pose a short line below the trap, Kongpan the main signs of the desire to collect bargaining chips very strong. With all the recent good returns, for the Unit once again regroup, stock sign of strengthening significantly, continuous recovery of a number of long-term averages. Today's stock price is up 3.46% advantage of the opportunity to accelerate, in one fell swoop all the averages in the bag and speed up the eruption of violent Quotes come ahead of schedule.
