big adjustment inoculation big opportunity

Reiterated core investment logic: big adjustment inoculation big opportunity. Last year the company has experienced strategic adjustment, development strategy of the four by "1 + 4 + 1" adjustment for "two wheel drive, Japan, innovation management, spanning development", the company level for huadian group raised secondary unit, with Chinese electricity 601179) cooperation, plus (the company's extensive technical reserves and constantly optimize the management structure, guodian south since entering the great-leap-forward development. 2010 performance than expected initial display strategy transformation effect, the nextMBT Fanaka few years the company is expected to remain more than 40% of the strategic adjustment of the compound rate, the big opportunities conceived.
A quarterly off-season features, with annual can still high growth. The 2011 quarter, to achieve the company income 4 billion, up 11%, realize the negative net 191 million yuan, 45.24% year-on-year, realize the negative net attributable to the parent company owners 2.13million year-on-year growth of 3.9 percent, earnings per share for 0.007 yuan. By a second equipment enterprises, the company is the traditional slack in the first quarter, with a quarterly off-season features new receive orders because last year in recent years, expected annual peak can still keep high growth.
Comprehensive c.m a high rate level also higher MBT Sawa gross margin, quarter for 30.4%, comprehensive higher than last year's 27.98%, explain the company product structure and process control the optimization effect is obvious, product comprehensive profitability is good. Quarter sales rate for 17.48%, management fee, due to 17.29% cardinal relatively low income, making higher level relative in significant.
Management fee of high is mainly from the original company operating mode of the branch (division) model into a parent and subsidiary companies mode and increase scope of consolidated financial statements. Financial use rate is also 7.61%, higher level, the company issued 7 billion short review securities, adopt various financing means to reduce the financial costs.
5 billion invested in construction of jiangning) since (south guodian intelligent grid industrial park. Guodian south jiangning) intelligent grid since (industrial land area, planning to about 319 mu, and building area is about 23.9 million m2, the project total investment is expected to 500 million yuan. After the completion of the project will mainly devotes to develop intelligent power system, intelligent power system, intelligent substation system and other smart grid equipment, and information security, content online, reactive compensation, new energy access system of new industries. Expected 2014 can realize operating income (not including tax) 24 million yuan RMB, the investment capital is recovered in a 520 (including 2 years construction), financial internal rate of return for 29.41% increased).
Add endowment south since colin company. The south since will hold power meters (55%) equity assets expected shares (in real 6.7 million evaluations shall prevail) and cash to colin company 3,730 yuan endowment. Colin company is a wholly-owned subsidiary, south since the main business of urban sewage treatment and industrial wastewater treatment projects, analyze instrumentation sales etc. Expected 2012 sales income may receive 1.213 billion yuan, financial internal rate of return for 20.21%, dynamic investment payback period is 4.21 years.
Maintain buy rating, target price of $40. We maintain the earnings, mbt shoes usa expected 11 years respectively - 13 years EPS 0.62 for $1.50 and 1.01, 2010-2013, expected for four consecutive years, giving more than 50% compound growth after the 2012 diluted 40 times PE, corresponding target price of 40 yuan, maintain company buy rating. 10 years of PS is only 3.71, industry average PS 11.5, value is low, and net profit exists improved market space.
Share price catalyst: intelligent grid, new energy, energy efficiency, out of stock policy (ZouHui) Orient securities institute