The hottest Xinyi Glass is the largest supplier in

2022-08-13
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Xinyi Glass is the largest supplier in China's automotive glass replacement market

in the last month of 2012, there were structural changes in asset allocation in the capital market. Funds began to flow out of the bond market and into the stock market on a large scale. Equity funds have recorded a net inflow of funds for four consecutive weeks, and the appetite for market risk has increased, and funds have begun to chase high-risk assets. Looking at the overall situation, the trend of funds switching to the stock market is just beginning, because at the current transaction amount, funds have not yet fully flowed into the stock market. The average turnover of Hong Kong stocks in December was only 63billion yuan, an increase of 15% over the previous month, but the average daily turnover has not yet reached more than 75billion yuan, so the turnover will be one of the indicators for the continued rise of the market in the future. From the perspective of wave theory, in the long-term trend, Hong Kong stocks have entered the second bull market. It is believed that the trend of Hong Kong stocks in 2013 will be a sharp rise and a small return. It is recommended that you seize every deep adjustment opportunity, because every adjustment should be a good opportunity to enter the market. In order to welcome the arrival of the bull market, in terms of stock selection, the author will introduce the stocks with high "beer hitting coefficient" and strong cyclical characteristics - Xinyi Glass (0868), which plays an increasingly important role in the field of energy-saving materials

at present, Xinyi Glass mainly produces and sells architectural glass, automotive glass, float glass and solar energy application glass; Among them, the gross profit margin of automotive glass and architectural glass is relatively high, 42% and 35% respectively. Benefiting from the urbanization policy promoted by the central government, coupled with seasonal factors, all regions begin construction at the beginning of each year. It is believed that the price of architectural glass will rise in response to the sudden sharp rise in demand, which will make the profits of the glass industry expand rapidly

the overall gross profit margin of energy-saving glass increased

the most noteworthy is that while the central government promotes the development of urbanization, it also emphasizes the importance of energy conservation, emission reduction and environmental protection. In construction, the most effective way to achieve energy conservation and environmental protection must be to use the festival and inform the world trade organization that by the end of the year, the import of 24 types of recyclable and solid waste energy glass, namely Low-E glass, will be stopped. At present, this stock is one of the largest Low-E suppliers in China, and the measurement value obtained may not be the same. It is one of the energy-saving building glass suppliers, accounting for 17% of the Chinese market share. The unit is currently strategically focusing on the production of this energy-saving glass, increasing its production capacity to 19million square meters in 2012. Based on the fact that energy-saving glass is a product with high gross profit rate in building glass, it helps to drive the overall gross profit rate of the stock

the automotive glass market is roughly divided into two parts, namely, the replacement market and the OEM original market

automotive glass accounts for 21% of the global market share

in the replacement market, this stock is currently the largest supplier in China's automotive glass replacement market, and the market share is not only in China, but also in the world, with a market share of 21%, covering more than 130 countries, with glass corresponding to as many as 60000 vehicle models. As glass is a large consumable in cars, and domestic glass is cheap, the demand for replacement market abroad is very stable, which has always brought very stable cash flow to the stock. In the OEM original market, the stock established a joint venture with PGW, the world's sixth largest international automotive glass manufacturer, the year before last, which will help improve its brand effect and is expected to become one of the growth drivers in the future

in view of the recovery of construction activities and driven by seasonal factors, the author predicts that the gross profit margin of the 6th and emergency system inspection of the construction glass business next year will rise to 40%, plus its leading position in the industry and stable cash flow, giving the stock a 9-month target price of 5.8 yuan. Calculated at the closing price of 5.44 yuan on Thursday, it is equivalent to 15 times the predicted P/E ratio and a dividend yield of 2.1%. Zhonghua glass () Department

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