Beautiful air conditioning: beauty appliances share price adjustment is the opportunity to transfer layout

Recently, the media, companies in high-efficiency energy-saving air conditioning popularization of the existence of serious fraud issues, coupled with the market to adjust, United States of appliances to certain extent stock price fell.

The company verification, the company related questions that do not receive any notification of the Government sector, informing, on-site verification, all business are ordered properly.

Rumor from mainstream media, its content has not revealed the corresponding government sources, many places are not stringent criticism.

Challenged by the efficient energy-saving air conditioning promotion special inspection report, the parties are not informed that its specific content if there is no way of knowing. "The number of approved true is only reported to the number of 4.98%, up to 95.02% of false information or could not be verified" itself logically are unlikely to be false, 95 per cent, to a great extent and verification procedures. According to the Ministry of finance, development and Reform Commission on 2009 high efficiency energy-saving air conditioning popularization monitoring verification notice requirements, around the main principal energy saving supervision Center to verify, either by visiting user, verification purchase invoices and serial number, which requires the purchase of energy-efficient air conditioning users actively cooperate with the Steering and not strong, there is a large number of users can't be verified. Thus to determine the air conditioning manufacturers fake obviously untrue.

CF. gree-saving benefits data, the amount of energy subsidies generally still proportionality.

In addition, even if the company exist some false positives, energy efficiency labeling error reported that their number is very limited, to impact the company's current period a little money, EPS also does not belong to the company's recurring profit and loss categories, does not affect the company's long-term value.

Capital market share price adjusted precisely to the investors provides a good opportunity for middle line layout.

Company's business performance in the first half of the company to realize revenue 390.3 billion yuan, an increase of 56.7%, substantially realized net profit 17.9 billion yuan, an increase of 56.1%, EPS $ 0.57.

And industrial layout is very good, the product line has a good performance, air conditioning and part 258.5 billion, increasing by 40% (over 230 billion, gree air conditioning 21.7%); refrigerator 56 billion, increasing 99% (131 million compared to the Haier refrigerators, increased 38%); washing machine 48 billion, increased 100% (47 billion compared to Haier washing machine, increasing 28%). Drop the industry recovery factors, the company's long-term competitiveness led the company to grow faster than the competitors, the company's competitiveness in external embodiment in the channel, size, brand, product, force, etc, but also because of its fundamental competitiveness: absolute to profit-oriented private system, dedicated pragmatic helm, diligent professional professional manager team, specifically in place of incentive mechanisms, fast response times are flexible market strategy. The company two years growth clearly accelerated positive benefits from the industry over the past few years, the planning layout for many years of accumulated industry. Catalytic by short-term factors: channel integration and marketing changes deepen (especially ice-wash); in addition the private placement completed last year, part of the solution the company rapid growth of financial issues, capacity problems, the release of the productive forces. August 7, the company's sales have continued the good momentum of growth in the first half.

Strong growth in sales revenue, market share continued to increase at the same time, the company's profitability also stable increase in the net profit margin, sales remain 4.5 percent weighted ROE kept at 25 percent, and in the future are still elevated space.

At the same time, in the first half of the companies in the context of rapid growth, the financial situation remains good, 66 per cent of the debt ratio at the end of the first half of the per-share cash flow from operating activities of $ 1.67, far higher than the corresponding earnings per share, plus final accrued expenses increased 36 billion 76.5 billion, accounting for remained cautious.

Earnings forecast and company valuation: balance, we expect the company for 10 years, 11-year EPS of $ 0.94, respectively $ 1.15.

In accordance with the 11-year EPS PE valuation given 20 times, December 6-the company target price to $ 23, maintaining the "highly recommended" rating.