Category: Money tips Release Date: 2006-03-26
Source: Tiantong Securities Author: Zhang Rui
Wednesday shock in broader market trends, Sinopec, China Unicom selling by institutions such as Shigekura varieties apparent, however, once panic in the stock index, while the broader market has not been apparent to run the pattern of destruction of confidence in the market remained relatively stable. If the average on the 5th and focal point for 1628-point average on the 10th in the afternoon break is not valid, then the Shanghai market will be in the active stocks Quotes in another record high, 1,700 points, can still look forward to.
Hot areas: non-ferrous metals continue to adjust the short side is more favorable Wednesday weapons, but the steel plate with the vehicle plate's overall strength, but also so much more vigorous multi-party counter-attack and momentum, especially in the rapid limit-G, after SAIC, G Chang, G JMC, FAW Xiali, Yueda investments, Su Changchai, Torch A so long as the entire market and vehicle-related species has risen sharply in intraday, touch to the limit-a minority, therefore, worthy of car-related species We are closely monitoring the market outlook, while the G space strong Feng Ting, G Tianwei's late breakthrough, G Yang Guan continuous soared, solar energy has increased the rise of the concept of re-imagination of the market. Therefore, the above analysis, if the can be found in one individual stocks, both short-term strength of the cars currently on the market the concept, another long-term market the concept of the new eloquence solar energy, then it will become the main focus of the market excavated objects: G Sailing (600,482) Major manufacturing and Starting with sales of automotive lead-acid batteries, and occupy the leading position in the industry, therefore, as a vehicle power source of the concept of an active species in the overall atmosphere of the auto sector, it is worth focusing on. It is worth mentioning that the company plans to invest 399 million building solar projects, the project as a whole will be completed and commissioned the formation of 400,000 MW capacity of solar cells and modules. Sailing with the car makes the G power and new energy shock of the two subjects the current market, we believe that the company should be a reasonable valuation range of 8.20-8.90 yuan. Company's share price more than 30% at least room for growth, considering the concept of giving new energy company's share price premium imagination, then the expected rate of return can also be increased. After a correction on the form of a brief run-up of a continuous small yang to show its inherent quickly pulled up a very strong desire to focus on.
G Sailing (600,482): Starting with the domestic automotive lead-acid battery industry, leading enterprises. Owned by the "sail" brand trademark, is the battery industry's only "Famous Chinese Trademark"; "sail" brand has a very high degree of public awareness. Company's main lead-acid batteries and associated products, main products include auto-start with lead-acid batteries, industrial VRLA, special batteries and battery casing, partitions and so on. The company a total of more than 210 kinds of products mass production models, all equivalent to adopting international advanced standards, the market share of 24% in the domestic same industry leading position. Successively with Shanghai Volkswagen, Shanghai GM, FAW Audi, Beijing Hyundai and so on more than 40 automobile manufacturers to establish a long-term stable cooperative relations between supporting some models exclusively by the company matching, and the supporting sales in 2005 increased by more than 45%; and gradually the company is actively seeking to join the BMW, General Motors, Ford, Volkswagen and other world-renowned car manufacturer's global procurement system. At present company's products account for the domestic automotive starter battery market in semi-matching is one of the country's total share of high-grade cars more than 70% complete. The country has 12 sales branches, 98 sales and service stations, has two regional sales agent, and more than 280 a distributor, radiation thousands of sale terminals, forming a complete nationwide coverage of sales network, export to the United States, Russia, Australia and more than 20 countries and regions.
Another solar project's total investment of 160 million yuan, the construction project in two phases, one is expected to be completed by the end of 2006 production, will form a 250,000 MW capacity of solar cells and modules; project as a whole will be completed and commissioned the formation of 40 10000 MW capacity of solar cells and modules in 2005, a project has started construction in 2006 will be the second phase, the project is completed the company will be among the leading enterprises in the domestic solar cell. If we simply estimate the project to ensure 50% capacity utilization in the premise, to 3.5 U.S. dollars per watt battery-piece basis, one year after completion of the works can be achieved sales income of 290 million yuan, according to 20% of the net profit rate of net profit can be achieved 58 million yuan, an increase of about 0.25 yuan per share. Two works are completed, the annual sales income of 580 million yuan can be achieved net profit of 116 million yuan, an increase of about 0.52 yuan per share. Therefore, the solar cell project will become the company's substantial increase in the core of future performance, and in this is expected on April 18 the Company's solar cell project began to adjust the content and increase investment in the original total investment of 160 million yuan to increase to 399.39 million yuan, increasing investment, the amount of silicon wafer materials, primarily for the purchase of new production lines required for the introduction of major process equipment and new plant construction area. New wafer production line, the company will form a solar cell project the most complete industrial chain, including: silicon, solar cell manufacturing, solar cell components, energy storage batteries supporting production and so on, will greatly enhance the overall profitability of the project capacity. Thus, we believe that management has begun to gradually enhance the solar cell industry in the company's position in the industry as a whole, G sailing future of new energy developments worth the wait.
In summary we believe that: the company's future profits of high growth with a realistic basis, the company formed by automotive batteries, industrial batteries and solar cells as the core of the three businesses under the car battery business has been a breakthrough technology and capacity threshold bottleneck, the fast growth in production and marketing, product grades began to improve. Industrial batteries project will be put into operation in mid-2006, thus becoming a new profit growth point; while the solar cell project is great room for development, according to conservative estimates, after the commissioning of a project can achieve net profit of 43.5 million yuan a year, increasing each share earnings of around 0.20. EPS is expected to 06-08 years were 0.35 yuan, 0.53 yuan and 0.78 yuan, thus we believe that the company should be a reasonable valuation range of 8.20-8.90 yuan. Company's share price more than 30% at least room for growth, considering the concept of giving new energy company's share price premium imagination, then the expected rate of return can also be increased. Based on the above considerations, it is recommended to focus on. (Rui)
