Event: the company announced on April 3 that the company applied for suspension of trading, mainly because on April 1, 2009, the Wuhan Financial Office organized a meeting of relevant personnel from Wuhan Changjiang Communication Industry Group Co., Ltd. And Wuhan Yintai Science and Technology Power supply Co., Ltd. a preliminary discussion was conducted on the directional additional issuance of the company to Yintai Power supply.
Comments: ● background: Changjiang Telecom is mainly engaged in the production and sales of optical communications, wireless communication equipment and optical storage, and participates in Changfei Technology, the largest optical fiber and cable manufacturer in China. At present, optical communication products account for the largest share of revenue, reaching 75% (2007). Yintai Power supply is a professional high-tech enterprise engaged in the R & D, production, sales and service of valve-controlled sealed lead-acid batteries and intelligent new energy systems. The power supply equipment is widely used in communications, computer backup power systems, solar photovoltaic energy storage systems, vehicle power systems, and is the mainstream power supplier in the domestic communication industry.
The prospect of ● cooperation: whether this cooperation is brokered by Wuhan Finance Office, or whether enterprises combine freely according to market rules, or both, it is still uncertain, but the cooperation is bound to have a certain impact: (1) positive: if the directional additional issuance is successful, it will help to improve the coverage of Yangtze River communications products and set foot in the field of new energy. (2) on the contrary: Changjiang Telecom itself is not engaged in power production, and after additional issuance and acquisition, it will increase the difficulty of management. (3) share price: the company has been suspended and there is no timetable for resuming trading. However, if the IPO is successful, the company will be involved in the hot field of new energy batteries, which deserves the close attention of investors after the resumption of trading.
● profit forecast and valuation: as this matter is still in the communication and understanding of all parties, program demonstration stage, we maintain the early 2008-2010 EPS of 0.15,0.18 and 0.20 yuan profit forecast, corresponding to 2008-2010 dynamic P / E ratio of 60 times, 50 times and 45 times, the valuation in the communications equipment sector is on the high side, maintaining a "neutral" investment rating.
