Category: Money tips Release Date: 2005-12-26
The main conclusions
.. 2006 results slightly ahead of expectations: in 2006 the company realized main business income of 1.005 billion yuan, the main business profit of 360 million yuan, net profit of 269 million, respectively, an increase of 71.2%, 119.7%, 218.9% per share returns 0.73, slightly higher than we expected 0.72 yuan.
.. Allocation plan: the end of 2006 the total share capital of 37,036.5 million as the base, according to 10:2 ratio of bonus to all the shareholders and distribute cash dividends 0.03 yuan / share (tax included), while the ratio of capital to fund 10:8 Zhuanzengguben of all shareholders.
.. Equity incentive plans have little effect on earnings: In accordance with new accounting system to pay for the future of the shares shall be in accordance with option-pricing model to estimate fair value, counting the related costs or expenses, and capital fund. According to the company annual reports to calculate the results increased by 07 ~ 698,1525,1640 million in management fees in 2009 to reduce the EPS0.02 ~ 0.04 yuan, little effect has been included in our earnings forecast.
.. Slightly raise profit forecasts: As the electricity demand in Guangdong Province, the company completed in 2006 generating capacity of 1.99 billion kwh, Internet 1.82 billion kwh electricity use hours to 7370 hours, higher than we expected prior to 7200 hours. We are 07 ~ in 2009 a slight increase in the use of hours, respectively 6900 and 6700 and 6500, it increased 07 ~ 2009 profit forecast to 0.93 yuan, 1.26 yuan, 1.89 yuan.
.. Raising target price to 25 yuan: The company is trading at 20.5 yuan, has been higher than given in our previous 3 months initial target price of 18 yuan. We believe that the financial investors, industry investors and venture capitalists to participate in private placement to enhance the company's market image, while the next five years, average annual net profit growth of more than 50% and also to enable a truly high-growth companies, therefore, subject to Investors favor. We maintain our "advantage -1" rating and target price raise to 25.
