Blonde technology breaks capacity bottleneck performance will exceed expectations

Blond Technology (600143, closing price 10.25 yuan) since the bottom rebound, the trend is strong, up to 36%, far away to win the market. The company announced July 31, 2010, through the "on the formation of Jiangsu Blond Technology Development Co., Ltd.," The motion, decided in Jiangsu Kunshan Economic and technological development zone to invest in the construction of modified plastics and chemical new materials production research and development base, and the establishment of Jiangsu Blond Technology Development Co.　　This will further address capacity bottlenecks, to ensure the growth of the company's production and sales, and thus ensure the growth of the company's performance. Capacity bottlenecks are expected to break through the company in order to alleviate capacity bottlenecks, increased the East China chemical new materials market radiation intensity, the establishment of Jiangsu Blonde subsidiary, the provisional registered capital of 638.8 million yuan, will be mainly engaged in plastic and plastic products, synthetic materials and synthetic materials products research and development.　　The company did not disclose the size of the blonde in Jiangsu, but according to registered capital projections, Jiangsu blonde capacity planning is expected to exceed the Shanghai blonde, even with the Guangzhou headquarters, the possibility of parity, Jiangsu Blonde after Tianjin Blonde, to the company brought new growth space. 2009, the company's various types of modified plastics sales reached 430,000 tons, up from 2008 year-on-year growth of 19.6%, exceeding market expectations, the current monthly output of 5 tons, 2010, the company's modified plastic production will reach 550,000 tons, the output growth rate will be more than 25%, there is again the possibility of exceeding expectations.　　Assume that Tianjin plant at the end of 2010 to put 50,000 tons of production capacity, taking into account the full production capacity of the company, 2011, the company's production is expected to reach 650,000 tons, 2012 new Tianjin plant 150,000 tons of production capacity, Zhuhai new equity production capacity of 100,000 tons, production is expected to reach 900,000 tons. Jiangsu Blonde capacity planning for 300,000 tons, 2013 production, the company will be expected to reach 1.2 million tons of capacity, more than 2010 growth of more than one, according to this projection, the company's annual growth rate of production and sales will reach 20%.　　Expanding the size of the company brought about by the growth of white horse value stocks are relatively rare, but also the main reason for the market bullish company. Performance has the possibility of exceeding expectations of the company to adopt raw material costs and gross margin of the pricing model, time lag product prices, so in the raw material prices fall, single ton profitability is expected to expand.　　The decline in crude oil prices led to the decline in the price of ethylene and propylene, the company's profitability has recovered, we believe that the company's performance is more than expected. The company's massive expansion in the future may have diluted equity. Company 2010 Quarterly net assets of 3 billion yuan, the current production capacity of about 580,000 tons, in accordance with this proportion of settlement, the company added 620,000 tons of capacity to invest 3.2 billion yuan. But in view of the company's intangible assets, technology, and the company's current size effect, may be able to get the land at a lower price, the company's new expansion capacity of the actual investment will be much lower than the net assets converted.　　Assuming that the company's future capacity planning needs 3 billion yuan, assuming that the part of the funds are all in the way of diluted share capital, then the company EPS will be diluted 18.65% (assuming 10 yuan/share additional). According to 15% gross margin, a ton of modified plastic price of about 13000~14000 yuan/ton, gross margin of about 1500~2000 yuan/ton, if the current product price range is maintained, the company's performance has the possibility of exceeding expectations. The company is expected to sell modified plastic in 2010 about 550,000 tons, the current stock price has a strong margin of safety, the future consideration of growth, corresponding to 2010 years of performance can be given 20~25 times valuation. In addition, the company August 9, 2010 ban on restricted shares, if the price pressure, it will be a better buy point. Changjiang Securities