Fuyao Glass has been in line with international valuation.
since March 17, the stock price of Fuyao Glass has fallen by nearly 24%. PE of the company has decreased to 16 in 2008. 8 times, which is equivalent to the international auto glass production giants Asahi and bannitz. However, considering the company's growth of at least 25% in 2008, the valuation is obviously low
the company achieved operating revenue in the first quarter of 2008 13. 3.7 billion yuan, an increase of 21% over the same period last year, lower than the 31% increase in 2007. Net profit 1. 9.1 billion, a year-on-year increase of 19%, lower than the 49% growth level in 2007. Gross profit margin of sales 32. 95%, down 2% from the same period last year. 38 percentage points. Earnings per share diluted by new share capital is 0. 095 yuan. 0 before dilution. 1. It is widely used, 9 yuan/share, an increase of 18 year-on-year. 75％。
the revenue growth in the first quarter was lower than our expectation of more than 30% growth in the whole year. We believe that it has high-strength and low-weight mechanical properties, which has a certain relationship with the reduction in demand caused by the U.S. economic recession and the snow disaster in the south. But in the first quarter, the sales of domestic cars reached 257. 870000 vehicles, with a year-on-year increase of 21. 42%。 The automobile production and sales rate in the first quarter was 102. 36%, which is also a high level. Therefore, we maintain the growth expectation of 20% of the annual automobile production in 2008. This means that Fuyao, whose income is closely related to automobile production, can achieve at least 20% growth in the whole year. At the same time, considering that the company had 4.3 million tons of new production capacity put into operation at the end of 2007 (not included in the profits of the year), the production capacity increase was avoided by 37% because the cost was too high. We believe that the company's annual growth of more than 25% is still guaranteed
the company's explanation for the decline in gross profit margin is that the production of the company's Hainan float glass production line has increased the proportion of the income of float glass in the total income, and the gross profit margin of float glass is much lower than that of automotive glass (in 2007, the gross profit margin of Fuyao Automotive glass was 35.58%, and the gross profit margin of float glass was 23.32%), so the comprehensive gross profit margin has decreased. We believe that the main reason is the production cost of glass, and the key point is that the testing of material properties is more controllable and has increased significantly. Soda ash accounts for 20% of the production cost of glass. Compared with the stable price in 2007, the price of soda ash increased by 14% in the first quarter of 2008, and the price of heavy oil, which accounts for 35-45% of the production cost of glass, also increased by 20%. After entering the second quarter, the price of soda ash fell, However, compared with the beginning of the year, there is still an increase of 11%, while the price of heavy oil has risen all the way, up 33% compared with the beginning of the year. In addition, the cost pressure of automobile manufacturing enterprises is rising, and it is possible to transfer part of the cost pressure to parts suppliers. Therefore, we appropriately lowered Fuyao's forecast gross profit margin in 2008
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