Changfeng Motor: Guangzhou Auto Purchase shares open the company's development space

Sina tip: This article belongs to a stock comment column, only for securities consultants on the relevant stocks or plates of personal views and analysis, and informal news reports, Sina does not guarantee its authenticity and objectivity, investors operate on the basis of risk.　　For accurate information about the unit, please refer to the Bulletin of the Shanghai and Shenzhen Stock Exchange. Ping An securities Yu Bing Wang Dean The strategic objectives of both sides are ambitious. According to "Guangzhou Auto Group" Eleven-Five "Development Plan outline", 2010 Guangzhou Auto Group Passenger Car plate annual capacity planning reached 1.2 million, the engine annual capacity of 1 million vehicles.　　and Changfeng Group is planning: by the end of 2010, to achieve annual output scale will reach 280,000 units, sales revenue of 40 billion yuan, and strive to enter the national automotive industry 10, the specific product planning: SUV 100,000 units/year, car department 60,000 units/year, MPV car 20,000 units/year, leather Truck department 100,000 units/year. Changfeng cars are expected to enliven excess capacity. Changfeng as a traditional military enterprise, the historical burden is heavier, in recent years from the military to civilian investment more funds research and development of a variety of new cars, but the capacity utilization rate is always low, and over the years to the car market development is not smooth. Based on the rapid growth of its two joint ventures in recent years, GAC has been able to provide large sums of money for the development of Changfeng Motors.　　In addition, it is more certain that GAC will import product technology to Changfeng automobile production, help revitalize Changfeng automobile stock assets, improve capacity utilization.　　Since the transfer of the shares did not disclose the details of the cooperation between the two parties, we do the profit forecast still in accordance with the existing business of Changfeng group to judge. We judge the company's SUV annual sales growth of about 5%, product unit price and gross margin more stable. The company is expected to EPS for 2009 years 0.37 Yuan, 0.41 yuan. At present the stock price is 11.09 yuan, the dynamic P/E ratio is 30 times times, the city net rate is twice times. In view of the late with the Guangzhou Auto Group entry, the fundamentals are expected to improve significantly, we give the first "recommended" rating.