Price of fiber glass had been lowered to ~Rmb6, 500/ton, and had once bottomed at Rmb6,200/ton during the previous period, which accelerated elimination of the backward capacity. Having approached to breakeven line of the whole sector, further price slide seems impossible in the near future, and sign of rebound gradually emerges recently. Moreover, price of fiber glass will gradually improve with demand recovery, which provides support for the company’s performance growth.
Considering impetus from strengthened national infrastructure construction and American & European markets, the company’s 2009 performance is likely to be beyond expectation, thus “Overweight” rating is hereby maintained.