Chongqing Water Affairs: Investment participation in Chongqing Trust comments

Comments: 1. Investment in Chongqing Trust is in line with the company's interests to enhance the company's investment value. The performance of the public utility industry, with steady and abundant cash flow, investment in financial Enterprise equity is the practice of industry leading enterprises, can share the growth of the financial industry, to obtain considerable investment income.　　Chongqing Water Investment Shares Chongqing Trust is equipped with such characteristics, in the water business stable development at the same time, shares Chongqing Trust opened the company's growth space. 2. The increase in the price of capital is more reasonable.　　According to the Chongqing Trust 09 earnings data, according to the price of 3.8 yuan/share, the ratio of P/E and the market net rate of investment equity is 11.5 times times and 1.37 times times respectively, which is lower than that of the A-share securities trust plate, 20 times times P/E and 2.6 times times the net rate of the market, and is far below the valuation level of the 3. Increase the company's performance by about 15%, maintain the recommended rating. After the equity participation, the company holds 22.96% stake in Chongqing Trust. Chongqing Trust net assets reached 7.94 billion yuan (all 900 million shares are completed), the company's capital strength further strengthened, conducive to the expansion of its business scale, the conservative forecast Chongqing trust each year for the company to contribute to the investment income in 120 million-180 million yuan, the performance of thickening 15%. We believe that the investment in Chongqing Trust improves the value of the company's investment and maintains its recommended rating.