Category: Money tips Release Date: 2006-03-17
Beijing water supply there is still much room for growth. At present, Beijing Capital Water currently operates a total processing capacity of 1.2 million tons / day capacity in the construction of the project is 90 million tons, serve a population of about 2.88 million people.
As the Beijing roads, repair the MTR, affecting the water supply pipe network of the capital's sewage conveyance, making 2006 the capacity utilization fell to 70% or less, while 70% of the capacity utilization rate is the capital, after holding 51% of water relative to the original 49% stake in the preservation point of subsidy income, combined with the capital income tax benefits of water has not yet replied, and it is expected that the capital profit of water supply in 2006 will be relatively slight decline in 2005, but the 07-08, there were two growth points: one, capacity from 1.2 million t extend to 2.1 million tons; 2, there may be preferential income tax; 3, capacity utilization increased.
First general-purpose gradually reduced losses. With the Shenzhen water and sewage treatment charges have raised, we expect that in 2006, Sham group profit of 1 million yuan, but by the financial cost implications, Deep first common parent of 80 million yuan loss in 2006 is expected, compared to 05 100 million yuan loss declined. GM is expected to be around 2010's first profitable.
Results are expected next fall in 2006 actually rose. In 2005 the transfer of the "Beijing Automotive Investment Company" contribute 60.54 million yuan transfer of shares of non-recurrent revenue in 2005 Jingtong Expressway 03,04 additional annual sales tax and is a one-time refund of 17.6 million yuan, in addition, the capital water before the introduction of tax relief policy about 3,000 million provision for income taxes, and so on. In 2006 a non-recurring profit and loss factors, fewer than in 2005 about 110 million yuan, excluding non-recurring profit and loss factors, company's main business revenue and profit of water supply is still growing. Performance in 2006 is expected to 0.20-0.21 yuan / share, the relative drop in 2005 0.219 yuan ming real l (non-recurring gains and losses affect about -0.05 Yuan / Unit).
Investment grade. The study is in line with expectations, excluding non-recurring gain or loss of profits growth in the water about 20% in good condition. Maintain the recommended-A rating. DCF valuation of 7 yuan, but considering the first stake in a domestic water industry leading companies, based on the DCF valuation for 3-5% of the premium is reasonable, so we give one-year price of 7.2 yuan's long-term goals. Stock holdings have adequate opportunity for the callback.
