The company to carry out actively N330

The company actively develop steadily, product reserve, helps the company long-term SUV market stable development. The company to carry out actively N330 SUV products, independent gasoline engines, N351 SUV auto models, V348 upgrades (countries QuanShun emissions standards) and other products and V project reserves. Company in positioning high-end, on the basis of light commercialMBT Shuguli GTX, to moderation SUV market, expanding the company product structure and application field; On the other hand advance emissions standards technology and product reserve, will help the company's long-term stability and development.
The capacity expansion projects and small blue base construction will help the company breakthrough, considerably increase production capacity bottlenecks size. The company designed capacity of 10 million vehicles, 1 quarter standard has reached 1.6 million vehicles in production, production scale has been close to capacity limit. The capacity expansion project is expected to start from mbt sandals sale 2011 years 9 million vehicles contribute N800, N900 capacity; Small blue base investment $21.3 million yuan, design production 200,000 and are expected to maximum extension to 30 million vehicles in the first half, is expected to grow from 2013 came into use. New capacity will help the company breakthrough increases production capacity bottlenecks, scale.
Risk factors: macro economic slowdown in cause light commercial market decline in demand; Yu wins SUV and so on the new product marketing does not reach anticipation; The renminbi weaken the company product international competitiveness, etc.
Earnings forecasts, valuations and investment rating: expected because of risingMBT Fumba prices of raw materials, and products sales price adjustment, leading to the company quarter earnings drop, management pressure bike reflect, comprehensive consideration of the company gradually better management ability, reduce small company 2011/12/13 years EPS to 2.49 by / 2.92/3.42 yuan, the current price 2011/12/13 30.56 yuan, corresponding respectively in PE 12/1019 times. Comprehensive consideration of the automobile industry current valuations levels and the future growth situation, we think the company reasonable valuations for 2011 15-16 times PE, maintain company "buy" rating, target price of $40. (600030) LiChunBo citic securities (XuYingBo)