The first half of the Oriental zirconium industry net profit 20.6136 million growth 80%

Medium-term operating results: the first half to achieve net profit of 20.6136 million yuan, an increase of 80%, to achieve total operating income of 143.2722 million yuan, the year-on-year growth of 42%, earnings per share of 0.11 yuan. It is expected that 2010 1-September net profit year-on-year growth 50.00-100.00%. The cause of the performance change is the company's IPO project annual output of 2000 tons of high-performance al-y composite Zirconia Powder Project on July 1, 2009, successful trial production, Non-public release project annual output of 15000 tons of ultrafine zirconium silicate project was successfully produced on June 30, 2010.　　Net profit for the same period last year: 20.1948 million Yuan. To enter nuclear power materials: The company intends to be no less than 15.95 yuan/share price, directed additional not more than 60 million shares, raise capital not more than 820 million yuan, of which 520 million yuan to the annual output of 1000 tons of nuclear-grade sponge zirconium project, is expected to achieve annual sales revenue of 436 million yuan, the total profit of May 2010, the project was listed in Guangdong Province, the 500 strong project of modern industry strategic emerging project New Materials project, as the focus of Guangdong Province to support the key projects. At present, our country has built and is the construction of nuclear power plant annual zirconium consumption of about 550 tons, need to use nuclear-grade sponge zirconium 760 tons, but China's nuclear-grade sponge zirconium production is still in the initial stage, zirconium processing industry does not match, nuclear power with zirconium materials rely on imports. It is expected that after 2015, China will fully realize the localization of nuclear power equipment, nuclear power plant construction speed will be significantly accelerated, so nuclear power construction has a lot of room for development, the demand for nuclear-grade zirconium materials will be rapidly increased. Another 300 million yuan for annual output of 20000 tons of high-purity zirconium oxychloride production project, is expected to achieve annual sales revenue of 213 million yuan, the total profit of 33.03 million yuan.　　Chen Chao Dian, the company's controlling shareholder, intends to subscribe in cash to a 10% per cent of the total number of shares issued. Institutional holding: The top ten circulating stocks, the new Growth Fund in this period holds 3.4998 million shares. The top ten total holds the circulation disk 26.02% (the previous period is 21.18%).　　The number of shareholders increased by 30.76%, and the concentration of chips was general. Institutional comments Days congenial: The company is expected to achieve 2010 attributable to the owner of the parent company net profit of 58.72 million yuan, an increase of 94.67%, is expected 2010, 2011, 2012 EPS is 0.33 yuan, 0.48 and 0.53 yuan, corresponding dynamic P/E are 66 times times respectively,　　46 times and 41 times times, continue to maintain the company's "buy" investment rating. CITIC Investment: Capacity expansion to promote high performance growth, nuclear power to highlight long-term value. The company is expected to 2010-2012 EPS for 0.27 yuan, 0.49 yuan and 0.72 yuan, three-year net profit composite growth rate of 63%. The corresponding dynamic P/e ratio is 81 times times, 44 times times and 30 times times. Combined with relative valuation and absolute valuation, the company's reasonable value is 26 yuan. First rated as overweight.