Category: Money tips Release Date: 2007-04-07
Source: China Securities Journal
United Securities Research Institute Huan expected, G Yi-hua (600,978) this year net profit growth of 52%, which will enable the company export simultaneously have good growth potential. Huan pointed out that high-end solid wood furniture has become a luxury trend, dominant production enterprises can maintain a high level of profitability, capital markets should be given a higher valuation of the industry. "Resource + high-end consumer products to create" a reasonable position allows the company share price of 12 yuan or more, it is recommended "overweight."
G Yi Chinese export situation optimistic about the next 3-5 years. Continuation of China's furniture industry exports in 2002 the rapid growth since 2005, China's furniture export value grew 32.98%, reaching 13.767 billion U.S. dollars, is expected to also grow this year, more than 30%. China furniture export volume accounts for only 20% of total world trade in the global furniture industry exports against the backdrop of the transfer there is vast room for continued growth, should China's export situation for the next 3-5 years, optimistic.
The domestic market will become a new profit growth point. At present per capita annual spending power of the domestic furniture of about 11 U.S. dollars, only developed countries, 1 / 18, the output value accounted for only 9% of the global development room is great. From the company's domestic sales strategy and dealer reaction, the company expressed optimism about the prospects for the domestic market will become a new profit growth point.
Company's bargaining power with the sustainability of the higher. While the first half of timber prices, but the company makes the gross margins through product price increases did not fall but rise year on year increase of nearly 3 percentage points, the company can maintain more than 25% gross margin, and this bargaining power with sustainability. In addition, control of forest resources should allow China to obtain a clear cost advantage, which the company is different from other solid wood furniture enterprise core competitiveness lies.
Historical Information: G Yi-hua (600,978): the main force has been gradually increase the intensity of the operation of the stock June 23, 2006
In the long-term observation, G Yi-hua (600,978) of the trend is relatively independent, the main manipulator of Zhang Chi a proper way, the furnace control properly. Through the Unit, the main financial and operational data are also frequently involved in response to a currently running thread in the latter part of the Unit Quotes in the highly explosive. At the same time, the stock has strong fundamentals, supported by a 2006 G should be tightly controlled by Chinese furniture exports, while the leading position, and vigorously into the domestic market, upgrade "should China" brand in the domestic household market share and visibility.
As a leading domestic furniture industry, one of the company leading products are solid wood furniture, wood floors and solid wood flooring. The biggest advantage is the company's own brand, the main exported to the United States, EU, Japan and Australia and other developed countries are using the appropriate Chinese furniture trademarks, products in short supply, and formed a relatively clear brand advantage. At present, the company's overseas orders full, in order to overcome the issue of worry about capacity shortages, the company should begin construction in 2005, a Chinese wood City. Wood City, one has been scheduled for April 1 have been put into trial production, the company worry about capacity shortages are expected to be effectively alleviate the problem, but also conducive to the expansion of the scale of unit costs. We expect that if this year does not exceed 2 percent revaluation of the RMB, the company can improve product grade, as well as economies of scale to maintain the level of consolidated gross profit margin of not less than last year. Phase II project started in 2007, after the completion of appropriate Chinese Wood City will become the world's largest wood processing base monomer. 005, the company realized main business income of 787 million yuan, an increase of 21.47%, the main business profit and net profit growth higher, respectively, 29.01% and 35.15%, indicating that the yuan appreciation in the case of a good anti-risk ability. 2005's flooring business contraction is more obvious, revenues fell by 24.10 percent, mainly because it is full of furniture orders, more than the actual capacity of the circumstances, the company's production scale in order to ensure the floor compressed margin 6.5 percentage points higher than the export of furniture on-time delivery. Expected that with the wood City, one in the second quarter of this year's production, floor business to restore growth. From the company received orders to determine the current year, sales revenue will reach 10 billion yuan, an increase of 30%. (The following table for 2006 and 2007 earnings projections)
Indicators 2004A 2005A 2006E 2007E
Earnings per share 0.3100 0.3500 0.4068 0.5142
Forecasters Number 105
Maximum value 0.4827 0.6575
Minimum value 0.2417 0.4178
Industry average 0.2150 -0.0208 0.3472 0.4235
SSE 180 0.3844 0.3136 0.4353 0.5269
Shareholders of the data from the flow angles: the third quarter of 2005 prior to the main bargaining chip in funds focused on high, a large proportion of the Unit is configured; and in 2005 third quarter and 2006 first-quarter data show: the Fund focused on the main positions degrees and gradually dispersed, there are signs of Yajian position, while the stock price. Date from early in April, its stock has strong upward trend further, indicating that the main force has been gradually increasing the intensity of the operation of the stock, betting slips further concentration has become a risk. The overall trend of the early stock underperform the stock of compensatory growth trend has made clear the value of the unit or new mining has been the main force of the main identity, only hatched out of the White Horse from the dark horse breeding ground will continue to go on. Thus, in stock at the shock stage, investors take an active interest on the stock becomes very important!
