The solar plate 10 shares bearing potential （5）

2011 annual net profit pre-cut more than 90% of the company released the results of pre-cut announcement, throughout the year attributable to shareholders of listed companies net profit in 2011 pre-minus 90% or more.

The company's 2010 net profit of 619 million, EPS0.53,; down more than 90%, the 2011 net profit will be less than the 61.88 million, EPS of 0.053 yuan. View of the January-September realized attributable to shareholders of listed companies net profit of 232 million yuan, as well as $ EPS0.169 seen the company's fourth quarter is actually at a loss.

Net profit fell sharply Department due to multiple factors

According to our understanding of the company and the company's quarterly disclosed in 1-9 months, the following factors are the main cause of the company's net profit fell sharply. First, the company solar panel held by Juli rigging stock price movements, leading to changes in the fair value of the company revenue up sharply reduce; Company in which the transformer, photovoltaic, wind power industry downturn, their gross profit fell sharply, and at the same time, shares of the company investment income decreased; special since the second half by the polysilicon price cuts marked photovoltaic industry as a whole malaise impact on the company.

Cut Holdings and shares of a new energy company earnings assumptions

According to our research of photovoltaic and wind power industry, combined with the results of prior notice, we lowered the company New Energy Holdings and shares of the company: Sichuan silicon industry, Tianwei Wind Power, the Tianwei leaves, Xinguang Silicon Ledian Tianwei Yingli profitability assumptions specifically amended the rapid changes in prices since the second half of the polysilicon, multicrystalline wafers and PV module price assumptions; lowered its 2011 forecast of the business income of the transformer. 2012 uncertainty in photovoltaic and wind power industry, as well as the low growth rate of the grid investment expected under the national grid in 2012, the company's future performance growth drivers cautious.

Valuation and investment recommendations

Maintain the company neutral "rating. Adjust previous profit forecast 0.05,0.17,0.33 yuan,2011-2013 earnings per share, corresponding to the current price earnings ratio 205.96,66.17,33.85 of times. Refinement technology: actively practicing internal strength, waiting for the industry gets warmer

Refinement 002006 machinery industry

Research institutions: the Great Wall Securities analyst: Gui Fangxiao writing date :2012-05-16

Investment advice: We expect the company 12-14 years EPS were 0.49,0.79,1.25 yuan, corresponding to the current stock price PE 29,18,11 times the performance of the company greater flexibility, and have a certain competitive advantage, we think that the PE valuation solar cell the limited role of the investment value of the reference, the judgment of the industry inflection point is even more important for the company to maintain the company "recommended" rating.

nvestment recommendations: Arts shares in 2012, 2013 earnings per share were 0.46 yuan, 0.54 yuan, corresponding to dynamic price-earnings ratio of 31 times, 26 times. We believe that the Arts shares "Two Wings" development strategy into the harvest period, in particular, is relying on the rapid development of photovoltaic power plant investment business, the company's new energy business is expected to continue to adverse economic growth.

At the same time, the company owned subsidiary of Jiangsu high investment capacity of the venture capital business and is expected to continue to contribute to the performance in the future.

Based on the successful integration of thin film batteries → PV power plant model, we are optimistic about the variety of shares in 2012 in the field of new energy development prospects, the venture capital business and continue to look forward to. Valuation levels and growth, for the first time give the company "cautious recommendation" investment rating.