Recently, we research the Foshan Lighting [12.380.00%] (000 541), and for the first time to give its “overweight” rating.
Our business valuation by the way points on the valuation of Foshan lighting.
From the traditional business perspective, Foshan Lighting traditional business is mainly electric light source products, we expect the business contribution to the electric light in 2010 EPS (earnings per share) 0.25 yuan, while the overall development of steady electric light business, net profit growth of 20% of However, due to its energy-efficient lighting systems and LED lights in the field of development potential, we give electric light business 35 times PE (price-earnings ratio), its lighting business to contribute to the value of 8.75 yuan per share. In addition, its long-term equity value and cash to the respective contribution to the monetary value of 0.19 yuan per share and 1.03 yuan. Overall, the traditional business value of 9.98 yuan per share contribution.
The new energy business point of view, Foshan Lighting currently has two new energy business – lithium carbonate and battery. We believe that lithium carbonate is difficult to contribute to short-term profits, so the valuation of the new energy business only consider battery. General car battery capacity is 21 100 WH (power) to 6 yuan per watt when calculated car battery unit in 13 million. Assumption of pure electric cars by 2012 and 15 million units, Hefei, china Xuan Tech Power Energy Limited (State Crest Tech) can reach 10% market share, while shares of its contribution to the country Hin Tech 0.1 yuan per share, to give battery plate 45 times its PE, the value of battery plate contribution 4.48 yuan per share. (Editor’s Note: Hi-Tech is currently the country Xuan battery industry has been the actual supply and the few companies that generate profits, we believe that taking an optimistic estimate, Tower Tech profits States is appropriate. The main risk is that new energy vehicles forward speed.)
In summary, our analysis, the overall share of Foshan Lighting can reach 14.46 yuan valuation.
Foshan lighting to close at 12.39 yuan yesterday, was up 0.08%.
Participating States should not be underestimated Xuan Hi Power Battery
March 20, Foshan Lighting announcement said the country has Hefei Xuan Marketing Planning Co., Ltd. (hereinafter referred to as State Landmark marketing) to the country reached 20% stake in Landmark Hi-Tech stock transfer letter of intent. Foshan Lighting can be successful if the shares, Foshan lighting will be the country’s third-largest shareholder of Tower Tech; the first largest shareholder is the zhuhai State Hin trading companies, holding 58%; Country Heights Marketing is the second largest shareholder, holding 22%.
Country Villa Tech established in May 2006, the main business includes new material lithium iron battery, battery core, scenery lithium green lighting, electric cars and other products; has built a production line including: an annual output of 100 million Li-power electric iron AH core production line, annual output of 500 tons of lithium iron material production lines, annual output of 250,000 KWH lithium iron group production line, with the harvest group 3000 and the annual production of electric vehicle battery to install 10,000 sets of landscape lighting system capacity lithium.
Currently, the National Hi-Tech Tower achievements in the field of power battery cheap, it has to supply the 30 Ankai Automobile electric bus batteries, this 30 electric buses have been in Hefei, the official carrier of 18 Road bus line. Currently, with the power battery-related companies also rarely supply power to the battery electric vehicle experience, the National Hi-Tech Tower one of the best when the operator, technical strength can not be overlooked.
Lithium carbonate is difficult to see profits of business 2-3 years
September 2009 Foshan Lighting and Technology signed the establishment of Qinghai Salt Lake Salt Lake Buddhist Lithium Co., Ltd. according to a letter of intent, but six months later, this project is still only in the letter of intent to stay level. Technical staff now has leased equipment for testing, but test results are poor, do not rule out the need for a substantial increase in investment to purchase the equipment may be, this part of the equipment investment is estimated that at least 500 million yuan.