Hengtong Photoelectric (600487): The future is expected to maintain growth

     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 this basis, risk from the bear.　　For accurate information about the unit, please refer to the Bulletin of the Shanghai and Shenzhen Stock Exchange. Investment today photoelectric (600487) is mainly engaged in optical fiber and cable production and sales. Among them, optical fiber and related products accounted for 100% of the main income. Has now formed a communication cable, fiber optic cable, power cables, coaxial cable and optical devices Five series of thousands of varieties of production pattern, is the second largest fiber optic cable factory, market share of 17%. Investing in online analysts today shows that the company's 2009-2011 earnings forecasts were 0.79, 0.99 and 1.27, respectively, with a dynamic earnings ratio of 24, 19 and 15 times; a total of 19 analysts are currently following, 5 analysts suggest "strong buy-in" and 11 analysts suggest "buy　　, 3 analysts gave a "wait-and-see" rating, with a comprehensive rating factor of 1.89. By the fiber optic cable industry warmer influence, the company 2008 business income to achieve steady and rapid growth. 2008, the company realized operating income of 1.438 billion yuan, an increase of 30.66%, operating profit of 141 million yuan, growth of 12.08% per cent, the realization of the ownership of the parent company's net profit of 106 million yuan, an increase of 33.69%; EPS is 0.64 yuan.　　Dividend scheme: 10 shares of cash dividend 2 yuan (including tax). In the next two years the company's comprehensive performance is expected to maintain more than 30% rapid growth. 1. Group of cable and cable assets are expected to inject listed companies, the company intends to the Group and six natural persons, to 14.62 yuan/share price, the issue of more than 42 million shares, for the purchase of a prosperous cable 100% (prosperous Group Holdings 55.51%) and power cable 75% shares. After the new asset injection is completed, it can enhance the synergy effect and avoid the single risk of business. After the issue, the company began to enter the power cable business, the business is in the country's key investment areas, 2009 estimated 360 billion yuan investment in the grid.　　At the same time, the company involved in two industries, conducive to circumvent the single industry downside risks, to stabilize the company's cash flow, for more long-term development planning. Fiber optic cable business follows industry growth. Company Optical cable products mainly include communication with ordinary optical cable (G652) and indoor soft cable (G657). 2009, 2010 Operator 3G Network Construction will continue, the domestic fiber optic cable is expected to maintain a high growth rate of 20%-30%. At present, the company has 6 wire drawing towers, 11 production lines, 09 years in the first quarter will be expanded to 12 production lines, the estimated capacity will reach 5 million core km/year. The company's optical expansion rate is slower than the same industry competitors, we expect 09, 10, the company's fiber optic cable capacity utilization will reach more than 90%, but sellSales growth may be slightly slower than the industry's average growth rate. At present, the factory price of domestic fiber is 80 yuan/core kilometer to 85 yuan/core kilometer (08 3, 4 quarterly tender Price), 09 due to strong industry demand and cost problems, fiber optic cable overall gross profit margin or can rise, 2010 years later, as the market demand growth slowed, the major manufacturers to expand production capacity,　　Optical fiber prices may go down, when the gross margin of the product may be slightly reduced. G657 Optical fiber is expected to become the future performance highlights. 08 ago FTTx Indoor Soft cable customers are mainly cable television companies and real estate companies, products should be used for new residential indoor broadband access. Into the 08, all over the telecom operators FTTx construction began to drive the FTTX indoor soft cable market demand. G657 Optical fiber is FTTX indoor soft cable main selection technology products, the company in the G657 optical fiber research and development in the industry-leading level, at the end of 08, the National Development and Reform Commission in the new generation of broadband and network communications Industrialization Project approved by the prosperous Declaration on the fttx of the indoor cables of the plan. The company currently FTTX indoor soft cable capacity in 100,000 cores km/year, planned 09 capacity expansion of one times, up to 200,000 cores km/year.　　With the further implementation of the "light into copper retreat" strategy of telecom operators, as well as the accelerated process of G657 fiber industrialization, telecom operator FTTx will enter a large-scale construction period in the next two years, the company's soft cable products will become a bright spot for growth. Day congenial Gu said, because the company's cable and cable assets have not been injected, in accordance with the principle of prudence, do not consider two assets, the 2009-2010 EPS is expected to be 0.83 yuan and 1.03 yuan, if the company's asset injection part, may be lower, to maintain the company "buy" investment rating.　　Guotai to the company's target price of 25 yuan, the investment rating increased to "overweight."　　Risk Tip: Company Communications cable products downstream customers are mainly oligopoly manufacturers, there is a risk of product price decline; 2009 Optical fiber demand is big, optical cable business exists supply tension and price risk;