We survey the recent investment advice XJ Electric (000400) with an exchange of assets into the company, State Grid acquisition and production operations.
Do not take into account the assets to be injected into our forecast XJ Electric 09,10 annual operating income of 2.68 billion yuan,glue stick respectively, and 2.94 billion yuan net profit of 179 million and 202 million earnings per share were 0.47 yuan and 0.53 yuan. We expect the assets to be injected to achieve equity in net profit of 09,10 186 million and 197 million calculated according to the new capital of 120 million of assets into consideration after the XJ Electric 09,10 earnings per share reached 0.73 yuan, respectively, and corresponding to 0.80 per current share price earnings ratio of 33 times and 30 times. glue gun Given China's XJ Group EPRI on the possible acquisition and subsequent integration of further asset to the national grid may be in the White business, management, regulatory and other changes to bring about large XJ Electric we give the "recommended" investment rating.