In the first half results in line with expectations, several factors have led to lower profitability.
First-half operating income of 27.871 billion yuan, total profit of 2.249 billion yuan, net profit of 1.983 billion yuan,glue stick respectively, compared with the same period last year down 3.96%, 21.53% and 14.96%, earnings per share were 0.11 yuan, in line with our expectations.
Full order in hand, thermal power equipment industry is about to warm.
6 at the end of 2009 deadline, the group total power generation equipment orders in the hands of more than 170 billion yuan, glue gun a new undertaking throughout the reporting period, the power generation equipment orders 33.0 billion, close to 43.65% last year to complete the annual plan the amount of 66 orders % in the first half of the economic situation remains grim circumstances and achieved excellent results.
Earnings forecasts and investment ratings.
According to our forecasts, the company's EPS for the years 09,10,11 0.2037 yuan, 0.2314 yuan and 0.2946 yuan, we give the company the 2009 level of 50 times earnings, the corresponding price of 10.19 yuan, the investment rating to "hold."
Risk Warning.
1. Macroeconomics continues to slump, the downstream demand continues to decline.
2. A lot of capital expenditures may increase the company's debt burden and financial stress.
3. Business is more complex variety of other business may drag on performance.