Dare Technology (000910) Clear performance growth

-Citic Securities Maochangqing Company development Strategy Clear, forest industry leading position gradually strengthened. At present, MDF, wood flooring industry boom to warm, demand to build up bottom.　　The company's future performance growth is clear, the valuation advantage is more obvious, increase the investment rating as "buy". After recent years of capacity expansion, the company has reached 1.63 million cubic meters production capacity, wood flooring capacity reached 30 million square meters, in the domestic market share of 3% (MDF), 7% (wood flooring), for many years the first domestic stability. The company's brand value is outstanding, "Holy Elephant" brand 2008 estimate value reaches 7.085 billion yuan, stabilize the industry first. The company has a complete industrial chain from woodland to forest processing, and the industry has a broad prospect, while the company's future still has the power to further strengthen the forest industry. The future growth of the company's performance, in addition to the industry boom is also: 1, this year, the completion of the Holy Elephant Group 40% of the Equity acquisition, the company's minority shareholders fell; 2, Guangdong Zhaoqing and Heilongjiang wood industry a total of 420,000 cubic meters of MDF production capacity in the next two years to enter into production period; 3, financial costs declined.　　We believe that the current 18 times-fold level of PE valuation relative to the company's future performance growth has underestimated the intrinsic value of the firm. As costs fall and demand stabilises, 09, the company's business is expected to maintain stability in the trend of growth, taking into account the acquisition of the Holy Elephant Group 40% of the 09-year performance of the thickening, we raise the performance of large Asia and technology forecasts, 09, 10, 11 EPS is 0.50 yuan, 0.60 yuan, 0.74 yuan, corresponding to PE for 18, 15 and 12 times times, the current price of 9.15 yuan, the target price of 12.00 yuan, to increase the investment rating to "buy".