The cost pressure of Fuyao Glass slows down, and t

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Fuyao Glass: the cost pressure slows down, and the certainty of future performance growth is strong

● the certainty of future performance growth becomes stronger. We believe that in addition to Yutong Bus, another company in the automotive industry with relatively strong certainty of future performance growth is Fuyao Glass. Compared with the whole vehicle, the company's performance is more deterministic. Under the background of the sharp drop in oil prices, the company's future performance growth is more deterministic

● the sensitivity of cost changes to performance is greater than that of income changes. The slowdown of heavy oil and pure oil cost pressure in the future is conducive to the recovery of gross profit margin and the growth of performance. In this paper, we separately analyze the impact of the two on EPS. The impact tester is specially used for high-tech electronic components, and it is concluded that the company's performance will fully benefit from the decline in costs

● with the advantage of cost performance, the company's international competitiveness will be further improved, and it will become one of the world's mainstream automotive glass suppliers in the future. We judge that in the future, the market share and profitability of international competitors will be in a downward trend, which will create opportunities for China's leading automotive glass manufacturers. The company will occupy the market share of developed international automotive glass manufacturers through competitive advantages, and realize the OEM export volume and main engine. The load frame is composed of frame, load-bearing light bar, upper load-bearing beam, two-way afterburner, 2000kN load sensor, etc It is equipped with upper and lower indenters, cylinder brackets and other revenue growth

● we compare the company's financial indicators with our domestic competitors, Xinyi Glass and international competitors, and we are much higher than our international counterparts in terms of profitability. We are stronger than Xinyi Glass in terms of market share, revenue scale, profitability, the concept of investment and the conversion of old and new kinetic energy, and the return on joint ventures

● we conducted a sensitivity analysis on the impact of different gross margins of construction grade float glass on EPS in the year 2009 when we are stepping up production expansion, and came to the conclusion that even if there is a loss in 2009, it is only a slight loss, which will not bring a great drag on the company

● the valuation has reached the historical bottom, the stock price is safe, and has medium and long-term investment value. It is estimated that the EPS of the company in 2008, 2009 and 2010 will be 0 respectively. 49 yuan, 0. 613 yuan and 0. 722 yuan. At present, PE is 10 times, 8 times and 7 times higher than that in 2008, 2009 and 2010 respectively. In this report, we have made a sensitivity analysis of the impact of EPS on the cost, income, construction grade float glass and other issues worried by investors. Even considering the most pessimistic scenario and looking for a safety bottom line, the certainty of future performance growth of the company is still strong. We believe that in a weak market, The company is a better medium and long-term investment target in the automotive industry

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