Category: Money tips Release Date: 2006-01-16
Investment Points
Self-financing and IPO fund-raising projects were in the steady advancing. According to field research, the company self-financing and the IPO of the fund-raising projects are progressing steadily, where high-strength glass fiber and high-pressure composite pressure vessels by the end of 2006 the project was put into operation, micro-fiber glass fiber filter paper projects paper production line also has been put into operation by the end of 2006 (relevant industry background and business analysis, see pre-IPO analytical report).
The introduction of the management equity incentive mechanism is in the motion stage. Learned from this research, based on state-owned holding companies and business development significantly dependent on the main characteristics of technology and management talent, the company's management equity incentive mechanism set up already in motion, is waiting for the right time to launch.
Does not rule out a large-scale industrialization in order to accelerate the acquisition of peer manner. Pre-market speculation the company will acquire the same glass fiber composite materials in the field of specialty glass factory in Shaanxi, but the course of this research gives the company executives deny. It is reported that glass fiber plant in Shaanxi is China's fiberglass production of key enterprises and their products, with annual output of 7,000 tons of glass yarn, glass fiber 20 million meters, a thin glass fiber mat 25 million square meters and glass production capacity of 500 tons of steel products, the northwest region's only large-scale glass fiber manufacturing enterprises, in 2006 net profit of the plant is about 30 million yuan.
Company's good growth is expected to continue. 03-05 years, the company net profit compound growth 46%, with the self-financing, and IPO fund-raising project was focused on the end of two years of production 06,07, 07,08 years, the company expects net profit will show a 30% and 38% increase, 06 , 07, and 2008 EPS were 0.37 yuan, 0.48 yuan and 0.66 yuan (such as the acquisition of Shaanxi Glass Factory is 07,08 years, of 0.75 yuan and 1.00).
The concept of a reasonable valuation is expected to Nandi speculation. The company has a dual military and the concept of innovation is expected that once the market favorable for these two related topics, the company will become the object of market speculation, coupled with rumors from time to time to stimulate the acquisition of its secondary market price is likely to be higher than the small plates and in accordance with scientific research institutes restructured the company relatively reasonable valuation levels. We believe that the company's wealth of hot topics and a good prospect of industrialization may be the level of its 2007 valuation to 50 times price-earnings ratio (Should the acquisition of Shaanxi fiberglass plant, compared to 33 times price-earnings ratio), or 25 yen target price, give " buy "rating.
