Company is the nation's largest high aluminum foil and electronic manufacturing enterprises in high aluminum, electronic aluminum foil, foil electrode production technology level and the area has a strong R & D strength of the competition, while the market share of products in the country are also in a first in high Aluminum electrolytic capacitor aluminum market segments are highly monopolistic. 07-year high aluminum, electronic aluminum foil and foil electrode sales accounted for 89% of consolidated gross profit margin reached 32.4%.
● main product capacity expansion
High aluminum, electronic aluminum foil, foil electrode capacity will be in the high-speed growth. High aluminum company's existing production capacity of over 20,000 tons, electronic aluminum foil production capacity of 12,000 tons, foil electrode production capacity of about 1,000 tons, the company through non-public offering of 54 million shares of 1.024 billion fund will be used for high aluminum companies and electronic aluminum foil production line of new and renovated and expanded, the next two years, will enable the company and electronic aluminum foil high-capacity from the current 20,000 tons and 12,000 tons up to 40,000 tons and 27,000 tons.
● new capacity for the market to digest
According to Electronic Components Association data show that the world electrolytic capacitors (electronic aluminum foil downstream products) the average annual growth rate of 10%. PC domestic appliances and consumer electronics products in a process of high-speed growth, as well as international appliance production transfer to China, the domestic demand for electrolytic capacitors will be an average annual growth rate of 13-15 per cent, driven electronic aluminum foil and high demand high-speed growth.
● huge security problem can be solved
Provision for bad debts through the huge, troubled years of foreign Aluminum electrolytic capacitor security companies have been lifted. The future health of this company will be cleared away the obstacles to the rapid development.
● equity of the company earnings per share impact of expansion
From September last year to January this year, the company issuing new shares twice in a row, bringing the total equity increased from 16,558 shares to 35,206 shares, including 6,179 shares from the share capital flows increased to 13,550 shares. Equity of the company will expand the company's earnings per share growth to be affected.
● the company's future overall cost of procurement of raw materials facing upward pressure
Electrolytic aluminum production capacity of the company's future growth inadequate, it is difficult to protect all high aluminum production, outsourcing must be part of electrolytic aluminum. Because increases in the prices of domestic electrolytic aluminum, the company purchased electrolytic aluminum increased costs of procurement, high levels of aluminum margins facing the risk of decline. No company-owned alumina plant, alumina in the aluminum, mainly through long-procurement, as alumina prices next faces rising pressure, the company's future overall cost of procurement of raw materials facing increased pressure.
● company to "neutral" investment rating
Comprehensive consider the above factors, we expect 08 and 09 for the company's EPS 0.65 yuan and 0.92 yuan. Giving companies 25 to 30 times the PE, corresponding reasonable Aluminum electrolytic capacitor price should be 16.2 to 19.5 yuan. Optimistic about the company long-term, short-term to give the company a "neutral" investment rating.
● investment risks
1) Full Circulation context of the A-share market valuation risk lower center of gravity, 2) expansion of the United States of the debt crisis, the long-term cause of decline in consumption