Reason for change:
The trend of global lighting electrical product manufacturing bases shifting to developing countries such as China will continue. The company has leading technology advantages in the domestic electric light source industry. While the revenues of energy-saving lamps and ultraviolet lamps have steadily increased, the revenue of the HID lamp series has rapidly increased in recent years. The proportion of HID lamp series products in operating revenue increased significantly from 5% in 2004 to 30% in the first half of 2007.
Investment highlights:
(1) The process of entering the vehicle market by HID lamps is currently in progress and has passed Geely's technical certification. It is expected that it will pass Shanghai Volkswagen's technical certification in early 2008. The high entry barrier of the vehicle supporting market will help the company's technological advantages to obtain higher profit margins in the regulated market. With the rapid development of automobile manufacturing in China, we are optimistic about the company's long-term prospects in the HID lamp market.
(2) The year 2007 will be the main year for the investment of funds raised. The increase in HID capacity will accelerate and enter the vehicle market. 70% of the company's raised capital investment will be reflected in 2007. In fact, the company's speed of HID lamp production increase, the commissioning speed of the new production line is faster than previously expected. The total production capacity of the four HID lamp production lines that have been put into operation and are in the process of commissioning and installation will reach 2.2-2.4 million in 2007. In the case of short supply in the market, the company's sales of HID lamps in 2007 will exceed the previous forecast of 1.7 million. Only the amount.
risk warning:
Industry competition, product price cuts, raw material prices and factors of RMB appreciation.
Investment Advice:
Zhongshan Securities Yue Congzhong believes that energy-saving lamps are strongly encouraged by our national energy conservation policy. With the replacement of ordinary incandescent lamps by energy-saving lamps in the domestic lighting market, the company's revenue from energy-saving lamps including lamps, intubation lamps and integrated electronic lamps will continue to grow. The first target is 19. 5 yuan.
07 Semiconductor lighting and industry development trends and trends OIDA predicts that future LEDs will compete with traditional lighting. Semiconductor lighting mergers and acquisitions are frequent. Hengqiang is yet to test the five advantages of Zouqu Lighting Wholesale Market. The development potential of Changzhou lighting electrical enterprises is huge. August 2007 Home lighting business advertising ranking (Figure)
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Clover Trading Co., Ltd , http://www.zjflashlight.com