Jinjing Glass: A rating that was given a cautious recommendation (Figure)
Recently, Jinjing Technology was researched. During the period, we exchanged and communicated with the company's relevant personnel on the company's strategic planning, ultra-white glass production and operation status, and the progress and future profitability of the soda ash project. We believe that:
The market development effect of ultra-clear glass appeared, and product sales began to increase rapidly.
The soda ash project is expected to be commissioned in the middle of next year and will become the company's new profit growth point.
600T/D anti-UV glass is expected to be put into production at the end of this year, and the product structure is further diversified. The company's strategic layout will also be further improved.
The recovery of the float glass industry, industry self-discipline and price coordination will ensure a steady increase in the gross profit margin of float glass.
It is estimated that the company's EPS from 2007 to 2009 will be 0.44 yuan, 1.04 yuan, 1.49 yuan, and the target price is 31 yuan, giving a "cautious recommendation" rating.
The market development effect of ultra-clear glass appears, and product sales begin to increase rapidly.
Since the company's ultra-white glass was put into production in 2005, it has gradually entered the harvest period through market development for more than a year and a half.
At present, the company's ultra-white glass application field continues to expand, in addition to the use of architectural decoration, began to be used in lighting, home appliances, high-end furniture, solar flower rooms and other fields. Judging from the sales situation in the international market, the company's products have gradually opened up overseas sales with its excellent quality and price advantage. The ratio of its exports to domestic sales rose from 1:3 in 2006 to 1:1 in the first half of 2007. According to our research, in the first half of the year, the company sold 640,000 boxes of ultra-white glass (57,000 cases in 2006). It plans to organize two rounds of ultra-white glass production in the second half of the year. It is expected that the company will be super white in 2007. Glass sales will reach 1.4 million boxes. By 2009, sales of ultra-white glass are expected to reach 2.5 million cases.
We also communicated with the company about the future market competition of ultra-white glass that everyone cares about. At present, only the United States PPG, France Saint-Gobain, British Pilkington and Japan Asahi Glass, among which the world has the ability to produce ultra-white glass, Japan Asahi Glass PMG has already handed over markets other than North America, Japan and Australia to Jinjing for development because of product quality and other reasons. Therefore, Jinjing faces a very large market capacity. From the domestic market point of view, there is no news that Saint-Gobain and Pilkington have cooperated with domestic enterprises for production. Even if pessimistic considerations are made in the future for domestic enterprises with such a project plan, due to the impact of the production line construction cycle (generally about 2 years), market development, product certification and other aspects, we believe that this impact will not occur before 2010. Due to the limited increase in market supply and the continuous expansion of the use and demand of ultra-white glass, we believe that ultra-white glass will still bring more than 50% of the gross profit margin to the company in the next few years.
1 2 3 Next Page
Guangzhou Yunge Tianhong Electronic Technology Co., Ltd , https://www.e-cigaretteyfactory.com