Da-Qin Railway 16.5 billion additional applications awarded

China Securities Regulatory Commission issued the supervision of the 28th announcement of the audit committee in 2010, the 98th meeting was convened on June 28, 2010, the Da-Qin Railway Co., Ltd. and Guangdong Tower Licensing Company issued a convertible bond application was approved.　　The data show that the Datong-Qinhuangdao railway is intended to issue no more than 2 billion shares in public offering, and the proposed funds shall not exceed 16.5 billion yuan, and the assets and equity of the main transportation industry are acquired by the use of fund-raising to the Taiyuan Railway Bureau of the controlling shareholder, some of which are valued at about 32.8 billion yuan. Great Wall Securities believes that the company's successful acquisition of the remaining assets of the Taiyuan Railway Bureau, 400 million tons is no longer the power of the Great Qin Railway Company, the company under the jurisdiction of the increase in railway business mileage and the expansion of the scale of coal transport business, all of the Datong-Qin railway volume of long-term growth opened up And 2012 years later, with the basic easing of the bottleneck of railway transportation, the company may usher in a period of high growth of traffic volume. Regardless of asset injection, the estimated 2010 EPS is 0.57 yuan, corresponding to PE 16 times times. Maintain a "recommended" rating, taking into account the performance drivers and corporate valuation advantages of acquisitions.