30 billion large single for the rights issue escort China iron deep underground business

China Railway Bureau (600528, closing price of 9.13 Yuan) yesterday (May 26) issued a rights issue plan, proposed to raise 1.202 billion yuan for subway, inter-city railway construction equipment procurement.　　News, some investors call the "daily economic news" questioned the need for their financing, "daily economic news" also interviewed the China Railway Bureau related people and analysts, seeking the mystery. Financing of the Subway business rights issue plan shows that the company intends to not exceed the proportion of 2 shares per 10 shares to the entire shareholder placement, the total number of shares can not exceed 292 million shares, rights raised funds not more than 1.202 billion yuan.　　Of these, 982 million yuan is used to purchase urban subway and intercity railway construction equipment, 131 million yuan is used to purchase high-speed railway construction equipment, and 88.95 million yuan is left to purchase tunnel and submarine engineering construction equipment. Some investors said: "According to the quarterly report of 2010, why do we still have to circle money from investors when China Railway Bureau has more than $3.6 billion in monetary funds?" The company has been so small in the past 5 years, and the stock price has not been a big improvement.　　"Daily economic news" reporter then consulted the China Railway Bureau in 2010 Quarterly bulletin, found that the company's account has 3.687 billion yuan in money, and nearly 5 years the company has only two cash dividends, the cumulative cash amount is still less than 440 million yuan.　　A small dividend and no shortage of cash, the company's behavior is puzzling, the reporter interviewed the company related people. China Railway Bureau secretary Deng told the "Daily Economic news" reporter, the company's rights issue is mainly the needs of production and operation Development, and the subway construction equipment technology content requirements are relatively high.　　He did not give a clear answer as to whether there was a need to finance a rights issue. "Daily economic news" reporter on the financial aspects of the special interview with the second Bureau of the chief accountant Zeng Yonglin. He pointed out that the reason to buy the subway construction shield equipment through the capital market allotment, because the Shield equipment amortization period is longer, generally will be more than 5 years, and at present the company's own money funds for the settlement of funds and scattered throughout the country, there is indeed a gap in long-term funding, and therefore need to be resolved through the way of equity financing.　　Zeng Yonglin said that although the specific data is currently inconvenient to provide, but the company can determine in the metro and urban rail and other markets to achieve good results. CIC Securities analyst Rozer also more optimistic about the issue of the Second China Railway Bureau of the promotion of long-term performance. He pointed out that the purchase of Shield machine equipment will ease the company's existing shield equipment workload and maintenance costs, in order to maximize the use of equipment efficiency, at the same time, in view of the urban rail market, the level of gross profit is higher than the traditional construction types such as railways, this area of the increase in the proportion of business objectively will also enhance the company's comprehensive gross profit level,　　Positive impact on the company as a whole.　　The order is expected to grow by 30% this year, while the Second China Railway Bureau released the proposed rights issue, a major positive also very "coincidental" to follow. Company announcement on the same day, 2010 years ago, May, the companyThe new signing of the railway construction contract of 24.05 billion yuan, plus the new road project signed orders, the first May this year, the company's new contract reached 30.16 billion yuan, but also accounted for the company 2009 year the new contract signed 81.3%.　　The company 2010 to achieve a total order year-on-year growth of more than 30% will be a big probability event. Rozer pointed out that, in line with the construction goal of the medium and long term railway, the western region's railway network will expand from 30,000 km to 50,000 km by 2020, and the business mileage will increase by 70%, which would be much higher than the overall growth of the national road network by 40%. The company as the main layout of railway infrastructure in the western region will benefit significantly.　　It is expected that the company's annual order size of 2011-2015 year is expected to jump from 40 billion yuan in 2009 to more than 60 billion yuan, and the company's current infrastructure settlement income of only 33 billion yuan, there are about 1 time times to improve space.　　But the market is obviously not too bad for such a good, yesterday, the company's stock prices fell back, the collection of a long Shanghai film Line of the cross star, or only 2.82%. For this trend, a senior private equity analysis that the first market for the railway company's big orders have produced a certain degree of aesthetic fatigue, China Railway (601390, close to 4.54 yuan), China CRCC (601186, closing price of 7.18 Yuan) have had a major contract winning "experience"; At this sensitive point of throwing so good, the company may be nurse. As the stock market is depressed, prior to the company's share price has created a new low of 7.77 yuan, if the continued sharp decline will affect the enthusiasm of shareholders to participate in the allotment, and this good for the company's stock price still has a certain supporting role, so the move has to protect with the price of suspicion, so the market is not excessive hot money in