Star Technology: 10 ext. 8-10 Reviews

Event: The company plans to disclose the 2010 Annual report on February 22, 2011,　　The company board of Directors of the initial formulation of the profit allocation and Provident fund to increase the capital plan for: the company at the end of 2010 total equity 269.9349 million shares as the base, to the company all shareholders to the Capital Provident Fund 10 shares to increase 8-10 shares, do not send red shares, cash distribution plan undecided. Shen Analysis: 1, the company is the country's largest galvanized steel wire, stranded wire manufacturer, mainly engaged in radial tire steel cord, galvanized steel wire, galvanized strand and PC Strand products manufacturing, sales.　　One metal galvanized steel wire, galvanized strand production capacity of 200,000 tons, the market share of about 30%, production and sales ranked first in the country, in the industry leading position. 2, September 2010, the company announced investment in the construction of an annual output of 5000 tons of ultra fine steel wire project, deep processing of the intermediate products of the steel cord, the development and production of high value-added cutting steel wire for solar silicon ingot cutting process, the disconnection rate is far below 3%, superior to the industry leader, Becca 3% disconnection rate standard; and the company promises, The customer uses interrupts one, compensates a volume, manifests the company quality strength. At present, the company's products in short supply, rapid volume.　　In order to quickly occupy the domestic market, the company plans to non-public distribution of not more than 35 million shares, raise funds to invest in an annual output of 15,000 tons of ultra fine steel Wire project, is expected to achieve Belcate, Xingda international and Star Science and Technology of the three-world market pattern. 3, the company's solar photovoltaic industry chain has been embryonic. Upstream, the company already has Luoyang years silicon industry 26% of the equity; Midstream, the company has ultra fine cutting steel wire project, is expected April capacity will reach 5000 tons, the end of production capacity can break 10,000 tons, the additional investment projects up to the postpartum production capacity of 20,000 tons; downstream, to invest in the construction of 100MW crystalline silicon solar cell project.　　Complete new energy industry chain, will give full play to the company's existing product advantages, effectively enhance the company's core competitiveness and risk-resistant ability. 4, a simple estimate, the company 2010-2012 dynamic P/E ratio of about 66 times times, 41 times times and 32 times times, the valuation is not low, but companies such as the introduction of 10 shares to increase 8-10 shares, the right value is higher, on short-term stock prices still have a certain role in promoting.