Category: Money tips Release Date: 2006-04-06
Source: China Investment securities Authors: Kou Jianxun
Facts have proved that the bull market of the stock market has arrived. All along, the value investing cries of a wave after wave. However, triggered by the so-called value investing of the stock market has just begun. If in the first half of the stock market is money-driven bull market triggered, then the structure of the current heavyweight lead-based bull market is a sign of maturity. Therefore, the current market is dominated by blue-chip and weight, in particular the forthcoming launch of stock index futures, coupled with the sharp decline in international oil prices will trigger a new round of rapid economic growth period, so after the market is dominated by blue-chip, 10 years, the great bull market has only just begun, heavyweight investment opportunities will greatly exceed the market average. In this vein, we believe that the performance apparent turning point in the myth of Air China has only just begun.
Olympic Background birth inter-annual Great Niugu
In 2008's footsteps getting closer, the Beijing Olympic Games brought huge business opportunities, especially in a pair of the world is an ancient, mysterious 1.3 billion people, China is immeasurable. Improving the quality of people's lives, time, the concept of enhanced domestic and international population mobility increases, which Air China is a growing momentum of the biggest. Beijing is now the country's most high-quality international and domestic transit hub. The domestic passenger traffic in the top 20 routes to enjoy the highest market share of 32.4%. Beijing airport official and business travelers the proportion of total visitors, respectively 57% and 76%. Appraisal in brand value in China, Air China rank in the top 30, with a total brand value as high as 138 billion, far more than other domestic airlines. It is worth mentioning that the time is approaching, the Olympic concept in the secondary market is also ramping up. At present, an important transport hub --- Olympics Beijing Capital International Airport have begun to show face, Air China will become a huge cake to share the Olympic Games, one of the biggest beneficiaries.
Domestic shipping leader, "air big jumbo"
Route network is the company's main trunk routes, while operating from Beijing to Europe, North Asia, North America and other major international routes. The company now has in Beijing, Shanghai, Chengdu, Hangzhou and other base of operations for a total of 10. The main base is located in Beijing Capital Airport in Beijing in 2005 passenger and freight market share, respectively 44.4% and 50.2% market share in the airport dominant. Beijing Capital International Airport is currently three expansion of Air China in Beijing will be the competitive advantage will be further strengthened. In 2004 and 2005, China's Air Transport total turnover accounted for the proportion of China's civil aviation system, respectively 29.23% and 28.48%, are among the first domestic civil aviation enterprises. After listing to raise funds mainly for the aircraft purchase and the Capital Airport Expansion Project Phase III expansion project supporting Air. Which are the company's future strategic investments, as a basic monopoly on international routes in Beijing, the Olympic Games held in Beijing, under the stimulus of the next two years, the company's operating performance will play a significant role.
Drop in oil prices to improve profitability performance of the shipping industry, we know that the biggest cost is fuel, the international oil prices on aviation and shipping companies, its performance. China's aviation industry since the first half of 2006 the decline in performance as well as a loss of large part because of rising oil prices caused by rising costs have a negative impact on performance. However, the recent emergence of a continuous international oil prices plummet. Export data due to vague, the authenticity of OPEC has been questioned. Oil Movements monthly report released last week that OPEC's shipping in volume for two consecutive weeks, while OPEC's export volume has increased significantly. This is after OPEC announced a drastic cut 1.2 million barrels per day in total contradiction. So far, oil prices plummet started. As the shipping industry, leading enterprises, the current price of oil has come down to the strategic Jiancang stage, as an important production costs, oil prices dropped sharply on the company's performance had a significant stimulating effect. 3 shows the company's quarterly results shown a significant increase, so in the fourth quarter, a substantial increase in population movement, spurred by the company's explosive growth in performance occurs is not without basis.
Callback is a buying point
The secondary market, the stock since listing gains have been 90%. Although the gains were enormous, but compared to the company's growth and 4 yuan more than the absolute price, its investment value is very conspicuous. The Unit is currently two days after the adjustment of funds taking short-term efforts have been fully released. Same time, because the unit is new stock, without the pressure of history, hold-up is conducive to the deep involvement of the main explosive start continuous pulled, investors should be buying firm.
