The touch screen becomes the core driving force of growth (FIG)

Company July 30 released the 2010.5 annual performance letters, initial accounting for the first half of the operating income of 475 million yuan, an increase of 87.01%, attributable to the listed company shareholder net profit of 156 million yuan, the year-on-year increase of 144.18%, equivalent to 0.36 yuan per share, basically in line with our expectations. Touch screen and TFT empty box are the main reasons for the growth of the company's operating income in the first half. First-half TFT empty box business is basically full production, and the same period last year did not reach the break-even point, we estimate the first half of TFT empty box business income of about 100 million yuan.　　Company raised the touch screen business efficient production, 2 quarter has been basically full production, we estimate touch screen business in the first half of the income of about 150 million yuan. At the same time, the company's net profit growth rate is far higher than the revenue growth, we believe that the main reason is the high margin of touch-screen business revenue accounted for gradually increased.　　In addition, the company through strengthening internal management, improve operational efficiency, the development of new technology and other means, so that the cost of unit product sales fell Year-on-year, highlighting the company's outstanding technical innovation and cost control capabilities. In the long run, the company has a number of outstanding competitive advantages. One is versatility: The company is in the middle and upper reaches of the display device industry chain, the existing technology, equipment, the commonality is very strong; the second is professional: the company's product layout and the relationship between the upstream and downstream of the complete, the market advantage is obvious; third, forward-looking: The company management Team Major, the new field of research before the pre-sentence fully in place,　　The opportunity to intervene in a new field is accurate. I do not consider the company 2012 years ago into the new display device field, we expect the company 2010-2012 EPS is 0.78, 1.08 and 1.47 yuan, maintain a "strongly recommended" investment rating.