Event:
On February 11, 2009, we organized institution investors to carry out investigation on the company, and communicated face to face with the management team about the company’s development strategy and operating status.
Our Analysis and Estimation:
The company will mainly focus on three businesses: fan blade, gas cylinder and compound filter media in future.
1) Capacity scale of fan blade will continue expansion;
2) CNGC gas cylinder waits behind the release of market demand;
3) Compound filter media enjoys buoyant perspective;
4) Potential risks call for close attention;
Investment Suggestion:
We forecast the company’s net profit attributable to parent to be Rmb90.83mn, Rmb134.44mn and Rmb182.83mn respectively in 2008-2010, with CAGR at 34.54%; their EPS peg at Rmb0.61, RMb0.91 and Rmb1.22. With the capacity expansion, its profiting advantage may exceed the market expectation, thus we give “Recommended” rating unchanged for the counter.