Combined securities: Influence of Zhuzhou elevated collapse on the civil explosion in Nanling

Sina tip: This article belongs to the Research Report column, only for the analysis of a stock of personal views and views, and the unofficial news report, Sina does not guarantee its authenticity and objectivity, all relevant to the stock of effective information to the Shanghai and Shenzhen Stock Exchange of the announcement as prevail, please investors pay attention to risk.　　Joint Securities Xiao Hui event: nanling People's explosion recently announced that the holding subsidiary of Hunan Nanling Civil Blasting Engineering Co., Ltd. through open tender way to demolish the Zhuzhou Red Road viaduct on May 17, 2009 around 4:20 P.M. occurred an accidental collapse, the company's shares from 18th suspension. Comment: According to Xinhua reported that the accident investigation is still in progress, Hunan Province has quickly set up a project, and the construction of the bridge, including demolition of 12 of people to take coercive measures. Nanling civil explosion on the Hunan Nanling Civil Explosion Engineering Co., Ltd. shareholding 60%, 2008, the subsidiary to the combined profit contribution 0.17%, the proportion of the public companies currently in the production and operation of explosive products has not been affected.　　If there is compensation, it will affect the one-time profit and loss of listed companies, does not affect long-term profitability. The cause of the accident we still need to follow up, we judge that such a major safety accident may have adverse effects on the future development of the Nanling people's explosion, such as mergers and acquisitions, integration, but also may have a far-reaching impact on the safety management and even the development pattern of the civil explosion industry. Nanling Civil Explosion current PE (P/E) 35 times times higher than the chemical industry average level, higher than the same industry company developed PE for 20 times times. In view of the relative valuation reasonable, this major accident increased the uncertainty of the future development of the nanling people explosion, we lowered the nanling to "neutral" rating.