Sunrise Oriental: dual brand to enhance the share of

The company's main solar water heater, solar hot water engineering systems, such as solar thermal products, with two well-known brand of Four Seasons song Mu "and" Solar Rain "is a domestic solar cell water heater industry leading enterprises.

Dual-brand strategy to enhance the company's competitiveness in the market

Fashion brand's Four Seasons song Mu, more a sense of quality; rain the sun completely independent channels and marketing teams of the two brands for the Volkswagen brand, positioning, and to facilitate the promotion and management; production lines, logistics and distribution, and after-sales is shared help enhance the operational efficiency and speed of response. The company has been focusing on brand building, advertising investment is also stepping up the intensity, and also allows the company to continue to promote brand building Four Seasons song Mu continuously improve market visibility and reputation of the two brands of the rain the sun, and both brand differentiation positioning, complement each other, a healthy competition in the market, will help the company grab more market share.

The channels will expand to a secondary market

Mainly due to the characteristics of the industry, most of the revenue from rural sales network to three or four markets. Take into account the needs of the urban market for solar water heaters will also gradually increase, the company will invest 300 million yuan to establish a marketing network in a secondary market, is expected to set up 37 sales and service centers in 23 provinces and cities nationwide. Company marketing network will achieve the county town market extends to the city market, the company marketing network can be optimized and perfected, to strengthen the capacity of project marketing. The construction of the flagship store for the company to provide a good image of the exhibition center, and is conducive to the enhancement of the company's brand image, as well as market share gains.

Balcony hanging solar water heater company products to solve the limitations of traditional solar water heater needs to be installed in the roof, the floor space is small, beautiful shape suitable for the integration of high-rise buildings in the installation, in line with the requirements of urban planning. Expanding urban residential balcony hanging solar panel water heater will provide product support.

Engineering business will become a new profit growth point

The main channel of the company engineering business enterprises, real estate projects and industrial uses. Be customized according to customer demand, requires a certain design and unified installation. The company has accumulated a certain amount of quality dealers in the engineering business with strong project management and public relations capacity and the ability to take orders. In recent years, the rapid growth of the engineering business, the company's main revenue ratio of 10%. With the gradual promotion of civilian residential building water projects, public buildings hot water project in the future, the market size of solar hot water project in China will continue to expand the engineering business will become a new profit growth point.

Earnings forecasts and investment recommendations

We are optimistic about the company as the growth of the solar water heater industry leading space. 2012-2014 Basic earnings per share were 1.07 yuan, 1.29 yuan and 1.47 yuan, according to the latest closing price of 12.3 yuan, corresponding to a PE of 11 times, 10 times and eight times. For the first time give the company overweight rating.

Risk Warning

The risk of fluctuations in raw material prices; capacity release the risk of lower than expected; risk of intensified market competition; risk of lower-than-expected macroeconomic recovery.