Medium Large size capacitive screen formal project

-China Merchants Securities Zhangliangyong He Jin Xiao Company fourth session of the Board of directors fourth meeting resolution "On the investment in the construction of large-size capacitive touch-screen project motion."　　We believe that this means that the company officially entered the field of the large size touch screen, for the future development of open up space again. To our estimate, the tablet computer shipments of about 10 million this year, the next two years will be more conservative than the netbook's shipments, to more than 40 million units. If the tablet computer is considered to be a personal laptop in the future, its annual shipments will reach more than 100 million units. This is at least 3 times times more than the handset capacitive touch screen market. Assuming that the project capacity of 4 million pieces of 10-inch capacitive touchscreen substrate, according to the ipad BOM analysis, 10-inch touch panel base plate price of about 30 U.S. dollars, if the future to 20 U.S. dollars, the renminbi against the dollar rose to 6.5. Then the output value of the project amounted to 520 million yuan. In view of the company's Ito Glass and CF two business has maintained about 40% net profit margin until 2008.　　To be conservative, we calculate the net profit margin by 30%, the project can contribute 156 million yuan to the company after childbirth, can increase the thickness of 0.36 yuan EPs. In addition, the company in the future there are multiple beyond the expected factors, is just beginning to cash one by one. The future company also exists: capacitive touch screen downstream industry chain maturity of the company's customer structure optimization, color electronic paper project start-up, based on new technology of the launch of a touch-screen products, such as multiple hyper-expected factors. In view of the above reasons, we maintain the company 2010, 2011 profit of 0.86, 1.20 yuan forecast, maintain the "strongly recommended-A" rating and 6-month short-term target price of 31 yuan unchanged.