Category: Money Tips Date: 2007-04-09
Source: Northeast Securities Author: Zheng Li Ting
As the main market, funds and social security trend is that we investors should focus attention. In particular, with three quarterly announcements of its substantial Masukura stocks worthy of our focus on tracking. We know that non-ferrous metals industry is recognized as the most promising market sectors, the industry-related development opportunities faced by listed companies will also be huge, so the plate well received by the main financial favor. At the same time as the international market once again non-ferrous metals prices strengthened, while the plate after a long period of adjustment, the short has been an effective kinetic energy released, which had once again led the market's potential. It is worth mentioning Guanlu shares (000,831) as the plate in the Fund and the Social Security Masukura the most visible individual stocks, shares of its multi-year leader style has emerged.
Industry leading product demand
The company is an important one of electrolytic aluminum production, product market share of about 4%, in the domestic aluminum industry plays a decisive role. With the resources of the company highlights the strengths and technological superiority to achieve the company's rapid growth, the company leading product electrolytic aluminum production, electricity accounts for about 35% of the total cost, alumina account for about 45% of the total cost. As the company is located in China's energy rich province of Shanxi, the coal reserves and bauxite reserves rank first in the country, the company and close proximity to the country's largest alumina base --- Shanxi Branch of aluminum, so that the company has exceptional resources and costs competitive advantage. As the industry's leading the company's growth potential is enormous. Meanwhile, strong demand makes the aluminum price is still expected to maintain a relatively high position, electrolytic aluminum in construction, transportation and electric power industry, the widespread application of electrolytic aluminum industry is expected to enter the business cycle. According to the World's largest aluminum producer Alcoa forecasts, is expected during the period 2005 to 2009, China's aluminum demand growth rate will be 12.5%, electrolytic aluminum industry, the growth trend is expected to continue. In a good market environment, the company's growth prospects is very conspicuous.
The cost of production decreased significantly
The production of electrolytic aluminum and alumina the main raw materials required per ton of electrolytic aluminum production cost of about 2 tons of alumina, alumina costs account for about 55% of total costs, electricity costs account for about 30% of the total cost. At present the highest this year alumina prices from 5650 yuan / ton down to 2950 yuan / ton, alumina prices fell by almost half. Alumina prices fell to substantially reduce the company's production costs. The company through the acquisition of Yuncheng, Shanxi Guanlu heat and power plant to reduce production costs. Thermal power plant is expected to completed in the second half of 2007, and power companies. The annual generating capacity of the project design 2002GWh / year, the annual heating capacity of 4.49 million GJ / year, to meet the company's production of deep processing of aluminum and the demand for electricity and transportation urban heating demand, the company received a significant decline in production costs for the company's the constant acceleration performance has laid a solid foundation.
Deep-processing to enhance performance
The company 220,000 tons of aluminum electrolytic aluminum and aluminum joint venture between China St., 2007, to reach production, which will ensure the company a substantial increase in production of the next two years. For the production of high pure aluminum, to high-end developments in the field: The company plans to invest 10 thousand tons / high aluminum projects with a total investment of 178 million yuan or so. High purity aluminum is mainly used in the electronics, aerospace and high-speed rail transportation in areas such as good demand prospects. Price is the price of ordinary aluminum ingot 1-1.5 times. 40% of gross margin and net profit rate of 10% or so. This is expected to part of the profits in 2007 could be reflected in the performance.
Multi-year style of leading shares has emerged
The secondary market, the stock's long-term growth of its popular large organizations favor the third quarter, the fund's holdings of view, obviously Masukura signs. The Unit is currently at a historic mid-rise platform, finishing the last paragraph, the unit below the average intensity of very strong support for the stock is in the third quarter of the cost involved in the main bit, rational selling points has been emergent, investors should focus on.
