The mechanism of the hot money relay bidding in three rings by the performance of a positive surge

A body and the money relay of the price of the rally is in the three ring (000970.SZ) body staged. October 21, the third quarter of 2010, three-ring quarterly results of the revised notice of the agency "fan Wind", the hot money "ignition" the best reason.　　Since the performance of the prior revision notice, the three-ring division has been trading for three consecutive trading days. As of October 25, the third Ring of the Central Division closed at 23.96 Yuan.　　October 21 to 25th three trading days, the cumulative turnover of up to 3.6 billion yuan, turnover rate also surged to 42.02%. The catalyst for the company's share price is a growing global economic outlook and a rebound in overseas demand, said Topaz, an analyst at the Minsheng Securities Institute.　　The company's annual performance will be greatly enhanced by the dual role of effective development of the domestic market and recovery abroad. And the three-ring performance notice revised notice also confirms this point. The company said the company's performance was growing more than expected because its product orders grew more than expected. The company estimates that the January 1, 2010-September 30, 2010 net profit of about 131.85 million yuan-139.76 million yuan, an increase of 150% to 165%; July 1, 2010-September 30, 2010 net profit is about 56.36 million yuan-64.27 million yuan, up 50.78%-　　71.94%.　　The agency's hot money relay hype October 21, the central branch of the three-ring release performance in advance to amend the announcement, the day that the daily limit. SSE Billboard trading information shows that the day there are two institutional seats appear, buy 29.68 million yuan and 23.736 million yuan respectively. Ranked first in the sales Department for Everbright Securities Shenzhen Shennan Road Securities Sales Department, the day to buy up to 40.4849 million yuan.　　Galaxy Securities Ningbo Cuibai Road Securities business departments and Guotai Shanghai Fu Lu Securities Business Department, respectively, buy 28.2724 million yuan and 23.6304 million yuan.　　It turns out that in the process of lifting the three rings, the agency is only in the "fan", and the real "ignition" is the hot Money sales department. On the second day of the trading Board main purchase list, Everbright Securities Shenzhen Shennan Road Securities Business Department is still the largest buying force, the total day to buy the amount of 26.7676 million yuan. And the other four buy seats for the National Yuan Securities Shenzhen Shennan Road, China Phoenix Building Sales Department, Huatai Securities Wuxi Jiefang West Securities Business Department, Galaxy Securities Xiamen Lake Road Securities Business Department, Haitong Securities Shenzhen Branch Red Ridge Road Securities Business Department, the whole day to buy 22.6141 million yuan, 20.5006 million yuan,　　17.7883 million yuan and 16.3707 million yuan. According to SSE Billboard trading information revealed that October 21 to 25th three trading days, Everbright Securities Shenzhen Shennan Road securities business, Galaxy Securities Ningbo Cuibai Road securities business, Galaxy Securities Xiamen Lake Road Securities business, National Yuan Securities Shenzhen Shennan Avenue, China Phoenix Building Sales Department, Haitong Securities Shenzhen Branch Red Ridge Road Securities Sales Department of the cumulative purchase of 67.7239 million yuan,42.9507 million yuan, 40.4176 million yuan, 38.6831 million yuan and 36.5314 million yuan.　　However, in the stock price of the relay race, the biggest winner of the three-ring strategic partners in the status of the five mining group. July 28, the central branch of the three ring issued a notice that the company and Minmetals Nonferrous in Beijing signed the "Strategic cooperation framework Agreement." According to the agreement, Minmetals Nonferrous will be the most preferential market prices to provide the company with Praseodymium Neodymium, dysprosium iron and other essential raw materials, and ensure the supply of raw materials stability.　　At the same time, the company will also give priority to minmetals non-ferrous metals procurement, such as praseodymium nd metal, dysprosium iron, such as the production of rare earth permanent magnet products necessary raw materials. As early as the first quarter of this year, Minmetals (and Minmetals) bought 25 million shares in the two-tier market, accounting for 4.97% of total equity, and became the fourth largest shareholder.　　At the end of the quarter, the three-ring division was about 11 yuan, and in a short period of half a year, the market value of the shares had doubled to 599 million yuan.　　Cost pressure Citic Investment analyst Zhang Fang that, although the second half of the third ring of China's revenue will maintain a better growth posture, but the price of rare earths rising cost pressure can not be overlooked, the company's product profitability there is the possibility of a decline. "We judged that, out of the need to consolidate market share, the company's second half of the price increase in space and strength are not too big." Assuming that the second half of rare earths prices remain at the current level, the company's gross margin has a further reduction of risk.　　"Zhang Fang said. In the first half of this year, the state of the Rare-earth industry in a comprehensive overhaul, coupled with the downstream demand growth, rare earth prices continued to rebound. Up to now, the company's raw material costs accounted for 53% of production costs, neodymium accounted for 61.3% of the cost of raw materials.　　Although the company shares two upstream rare earth raw materials production enterprises, and recently with Minmetals nonferrous sign strategic Cooperation Agreement, but the future of rare earth neodymium price stability of the expected rise will cause a certain cost pressure to the company. Up to now, the company orders this year mainly to three months short-term orders mainly, so the adjustment more flexibility.　　While it is possible to absorb some of the rising costs by raising prices, it is impossible to pass them on entirely.　　In addition, the company's exports in the first half of 2010 accounted for 77% of total income, but if the yuan appreciation will also be a negative impact on the company's performance growth. "Although the company has a certain price conductivity and bargaining power, but once the price of rare earths rise, will weaken the company's ability to digest costs, reduce corporate profitability." BOC International analyst Le Yukung said. "Companies in the first half of the 2010-year production and sales of the situation, the second half of 2010 corporate earnings growth will slow down." This mainly stems from the frequency of air-conditioning market summer seasonal demand. At the same time, the state household electrical energy consumption subsidies decline. Therefore, the frequency conversion air conditioning business will temporarily decline.　　However, Ping An securities researcher Xiaoyansong that the Low-carbon economy will detonate the demand for NdFeB magnets, and the company is expected to reproduce the high growth rate from 2002 to 2005. ND-FE-B, as a deep processing product of rare Earth, is the third generationRare earth Permanent magnet materials. At present, the world has formed a larger industrial scale, and in the electronics industry occupies an important position.　　But the wind power, energy-saving motors and new energy vehicles are the three most promising emerging applications, which create new market demand for ND-FE-B. Xiaoyansong said that the company's future development of power mainly from the new energy vehicles, high-power fans, energy-saving appliances.　　In the short and medium term mainly look at wind turbines and energy-saving appliances. "With the rapid development of China's new energy vehicles, the company will open up a rapid growth of space."　　"Xiaoyansong thinks.　　Jin Yuan Securities analyst Sun Fan said that the rare earth permanent magnet motor compared to the traditional motor weight reduction of 20%-30%, energy saving 10%-40%, the application field is very wide, mainly concentrated in the inverter air-conditioning, wind turbines and new energy vehicle motors. Although the rare earth permanent magnet motor still faces the problem of high cost, but with the state of the implementation of subsidies for energy-saving motor, as well as the increase in production cost gradually diluted, the cost will no longer be a bottleneck restricting the promotion of energy-saving motor. and inverter air-conditioning, wind turbines and new energy vehicles any one of the market to mature, will make the company's rare earth permanent magnet motor into the explosive growth stage.