G force 600 761 Sales are booming interest Money Tips

Category: Money tips Release Date: 2006-04-25

Source: today's investment

According to growth stock selection criteria, G force (600,761) with effect from May 15 named "Today's investment in 66" potential shares. As demand has grown rapidly, at present the company scheduling situation is more tense, the original promised delivery of 45 days of export, but also lags about two weeks. Company's growth in the first quarter, exceeding market expectations.

Company to abandon the issuance of convertible corporate bonds, the development to no more than 50 million additional A shares in circulation. As institutional investors attracted a major shareholder in Anhui Forklift Group Company decided to abandon the subscription, the ultimate issuance of the program passed. Estimated additional cost of 10 yuan, much higher than originally expected price, financing, the amount of 5 billion yuan, mainly for construction of two industrial park together.

First quarter of 2006, the company jointly Industrial Park, 20000 sets a base CE internal combustion forklift truck put into operation, capacity release, since the sales in good condition, recently has been running at full capacity. 10000 Taiwan reload the next two will be completed in early 2007, 10000 electric forklift completed early in 2008. The next few years, the company entered a new development platform for a substantial expansion of production capacity.

The first quarter, the headquarters of more than 6000 sales of truck units, of which exports more than 1,600 units, revenues increased 58.9% more than the performance increase of 90%. 4,5 two months in the second quarter, sales are still hot, single-month sales were more than 2000, exports of 500 units or more every month. Guotai Junan analysts expect full-year sales growth of 35% or more, including internal combustion forklift trucks for more than 28% by Zhang, battery forklift truck more than 40% of new products and casting, spare parts for more than 32% of the annual performance increase of 55% or so. Recent steel prices rose slightly on the company's gross margins have some impact, but taking into account the production volume increased, product structure adjustment and other factors, the estimated gross margin basically the same as last year.

Demand for our products special, widely distributed in the downstream industry, logistics, transportation, industrial production and other aspects, less affected by the macro-control. And the downstream logistics, shipping and other industries to ensure rapid and steady growth of the forklift industry well for the future needs of growth. Company's product positioning in the end forklift truck market, technology, and supporting advantages, has been in a position as a leading domestic counterparts. With the further improvement of matching, the company can complete its own basis, and constantly develop new products, the higher grade. Our products already have a well-known abroad, demand, recently they signed with the United States of a vendor selling 3,000 units a year cooperation agreement, expected this year exports increased by over 50%.

There is also the land value of subject matter. After the removal end, the company can transfer the original factory land. The old factory covers an area of 470 acres, which are about 150 acres of listed companies, about history, about the total cost of 7 million is currently surrounding land has reached 3 million / acre, has to appreciate significantly.

Analysts growth in the company's future performance is expected to maintain a good ,06-08 years of consolidated profit forecasts 0.68,0.87,1.08 yuan respectively, corresponding to dynamic price-earnings ratio for the 19,15,12 times. 8 Track analysts suggested four "strong buy", three people have suggested "buy", a proposal waiting to see. Among them, analysts said the current international price-earnings ratio of similar companies are 17 times more than the minimum, taking into account the company's growth potential in recent years, to give about 20 times earnings, a 12-month target price of 14.6 yuan.

Risk factors are: With the rapid development of China's logistics industry, a large number of foreign enterprises to enter China's forklift market and occupy a larger share of China's high-end market, the future development of the company have a significant impact. As the industry in a period of development, major manufacturers have expansion, resulting in expansion faster than the market demand, will lead to lower prices as part of the risk of products appear.

Historical Information: G force (600,761): 2006 performance growth will exceed the expected May 10, 2006

Source: and News

Stock Ratings �����/span>
A broader range of applications based on the forklift truck, less affected by the macro-control. The first quarter of 2006 accompanied by improved demand for construction machinery, forklift demand growth is also rising rapidly. As the forklift industry leading enterprises, G force (600,761) in 2006 first quarter benefited from strong demand for products out of stock. One quarter are expected to achieve sales of 6,000 units forklift, an increase of about 56%. Click here to trends, a conservative expects 2006 core business revenue and profit growth will exceed the original expectations, earnings per share reached 0.70 RMB; 07-08 year forecast earnings per share 0.83 and 1.04 yuan.
PE through the DDM valuation and valuation of the company shows a reasonable price in between 9.9-11.3. At present, the company's share price 8.8 yuan, corresponding to dynamic price-earnings ratio less than 12-fold from the stock price is still 12% lower limit upside. Maintain a "strong recommendation" of the investment advice.