Category: Money tips Release Date: 2007-05-01
HID lamps can be well prepared for production: pre-market in July, when we went to visit the company's research capacity of the then situation of HID lamps are two 300,000 / year of metal halide lamp production line has started production, 3-line equipment has just assumed office. Second half of 2006 all three production lines put into production, to the current Article 4 of the 600,000 annual production lines start debugging, and transforming the company through the device of the former three lines have increased capacity to 60 million. This 2007 snow Wright HID lamps (metal halide bulb) capacity of up to 2.4 million over the second half of 2006 production increased 150-fold. As the income will be subject to matching the rate of the proportion of rectifiers, market development impact of speed and open up the way, we estimate that optimistic case in 2007 car xenon lamp 1 times the upper and lower income growth, according to the 2006 income of 7000-8000 tens of thousands, HID lamps, that in 2007 around 150 million, while gross margins will decline.
Vehicle market is expected to complete in 2007 a breakthrough: the Geely, Volkswagen and other vehicle brands in the orderly conduct of the matching, send samples of their road tests among other tests in the program, we have snow Wright collar domestic suppliers of the first breakthrough in the whole HID lights car market supporting more optimistic than before. Companies that have announced a joint venture in Jiangsu Danyang replenishment is currently expect the adoption of the joint venture directly into the unlucky one package, while the vehicle matching the general public through its small-Si and a supplier Hella, is proceeding relatively smoothly. Company is also cooperating to establish a research institute in Nanjing, the follow-up research and development support for HID lamps.
Market risk lies in expanding the speed, HID lamp for halogen alternatives has become a trend: restricting car xenon lamp market more quickly instead of the traditional halogen lamps, the key is the level of technology maturity and technology. Philips, Osram, GE and other luxury cars for less than matching the lighting giants dominating the market, or that promote the rapid downward HID market development, because of its larger, cheaper production faces the same level of technology maturity and process bottlenecks. Now some cities restrict unauthorized alterations affecting the maintenance of xenon lamp market expansion, HID lamps do have poor conversion process, but too strong to leave the light off led to safety risks. However, the normal laws of technological development so that we believe that healthy competition in the industry the level of technology maturity and technology will continue to increase, HID lamps will increase the speed of market development. Other domestic lighting big companies seeking to enter the car xenon lamp production, contribute to auto xenon lamp market, the cake bigger.
Energy-saving lamps continue to be steady: Light snow during the first half of 2006 sales of energy-saving lamp close to 20 million, we have an estimated annual 40 million (including the capillary, plug tubes and integrated lights) around 2005 increased by 10% -15 %, as the snow Wright relatively stable price of energy-saving lamps, energy-saving lamps therefore the growth rate of income growth with sales of deviation should be minimal. It is understood that the company energy-saving lamps is much greater than sales of full load capacity, should prove that we have for their failure to focus on energy-saving lamps for the development of judgments. Light snow is expected in 2007 will continue the steady growth of energy-saving lamps, speed may be slightly lower than the industry average, but its profits remained stable. .. The new product reserves: companies in the field of auto xenon lamp metal halide lamp extension of the success of its wider field of research and development, manufacturing basis. A huge market space is expected to enter the commercial ceramic metal halide lamp in the test, while the company's LED tracking research is also proceeding. Light snow was to prove their scientific and technological innovation to a market-led development model of the continuing validity.
Investment advice: Our performance in recent years, the forecast may be conservative side, 2006,2007-year EPS were 0.41, 0.58 (corresponding to the level of net profit growth was 34% and 41%), yuan, because we tend to think that breaking into the vehicle auxiliary heavy volume time difference with the market, ideally in 2008 significantly increased 50% EPS up 0.87 yuan. Adequate market liquidity conditions, the snow Wright enjoy the technological innovation capability and governance structure of the valuation premium of up to 30 times more, if it is performance in 2008 was priced at 26 yuan. Short-term limit on sale this week on the 24th lifted equity market risk factors may be catalyst for the stock's performance early next month, Express and vehicle market, supporting breakthrough, ultra-performance if the market is expected to continue to help stock up.
