Bauxite shares: Disperse Dye Business Performance

The disperse dyes business is a major source of income and profits for the company's shares (002440). Currently, the disperse dyes industry is booming. Despite the decline in sales of other dyes, the disperse dyes still maintain a high sales growth rate. We expect this situation to continue. Therefore, the company's disperse dyes business will continue to grow; for the active dyes business, the company’s profitability will also be enhanced through the extension of the industry chain. From the perspective of the industry climate, the company’s One of the leading companies in the industry, the gross profit margin of the reactive dyes business has fallen to 13.31%, which is the lowest in the calendar year. The profitability of the 2H2011 reactive dyes business is expected to improve.

Compared with the previous report, we slightly adjusted the basic assumptions in Table 5. According to Haitong Securities (600837) valuation model, we expect the company's 2011-2013 earnings per share to be 1.30 yuan, 1.55 yuan, and 1.85 yuan respectively (mainly consistent with the previous period. ), The compound annual growth rate of net profit was 22%, compared with the company's closing price of $24.33 on August 5th, 2011, the dynamic price-earnings ratios for 2011-2013 were 19 times, 16 times, and 13 times respectively; our profit forecast did not consider the company Continuing to use proceeds from business expansion with over-raised funds, we maintain the company's “buy” investment rating with a 6-month target price of 28.60 yuan, which corresponds to a 2011 PER of 22 times.