Galaxy securities: tebian electric annual report comments maintain "recommended" rating _ peace is a blessing

Galaxy securities: tebian electric annual report comments maintain "recommended" rating from: Sohu securities 2010-02/26/ 12: 01 TBEA 22.03 + 0.050.23% tebian electric announced the 2009 annual report, 2009 company specializing in income 147.54 billion yuan, an increase of 17.86%; attributed to parent company shareholders ' net profit 15.29 billion yuan, an increase of 58.8%; diluted earnings per share of $ 0.85. Fourth quarter revenues-crop company 40.4 billion, an increase of 10.93% per year; attributed to parent company shareholders ' net profit 3.09 billion yuan, an increase of 27.71%; fourth quarter earnings per share of $ 0.17. Analysis and judgment as follows: company performance is slightly lower than the expected full year company Galaxy securities 15.29 billion in net profit was slightly lower than we expected, revenue recognition is lower than we expected, the fourth quarter, the company only recognizes 40.4 billion, less than we had expected revenue of approximately $ 5 billion. Gross margin levels to create a new high in recent years the company's consolidated gross profit margin reached 23.17% to reach a new high in recent years, over the same period last year increased 2.69 percentage points. Company main product gross profit margin were improved, including transformer gross profit margin improved 3.31 percentage, wire and cable lift of nearly four percentage points. Company product gross profit margin increase mainly due to product mix improvement, gross profit margin, higher-end products in company revenue ratio increases, in addition, the decline in raw materials prices lead to lower the cost of the company is also the cause of the gross margins increase. We expect lower prices due to raw material costs decrease factors eliminate, 2010 company gross margin will decline. Order growth slows as at the end of 2009, the company in order to 173 million in hand, the figure is only 170 billion by the end of 2008 the amount of outstanding orders, order a slight growth slowdown. According to the State tender, the company's market share is also on the rise, order the slowdown was due mainly to the decline in grid scale of investment. The company's future growth is international set of market development and expansion of the new energy field in recent years, the company actively develop international complete transmission equipment market, has achieved good performance — in Tajikistan and Sudan region access to transmission and distribution projects in 2009, the company works income reached 12.43 billion yuan, an increase of 62%, international engineering are becoming the company's new growth points. August 2009, the company of 3000 tons polysilicon project the first 1500 tons — variable Xinjiang silicon industry first furnace poly silicon Rod production successful, fully operational by the end of 2009, use the Xinjiang region cheaper electricity prices, companies in polycrystalline silicon aspects of business prospects can be optimistic about the PV industry will become another new growth points. Investment recommendation: according to the latest financial data, we slightly lowered company 10 and 11-year earnings forecast, it is expected that the company's 10-12 years of earnings per share respectively 0.94, 1.07 and 1.21 element. The company is one of the areas of transmission and distribution equipment, the company has the absolute leader in the domestic market share of the growing international markets and new business development is to expand the company's long-term growth space, we maintain company "recommended" rating.