slightly below the price year-on-year increase

Daye steel (000708) : performance can be period. Excellent forgings earnings
Event: the company announced: 2011 quarter daye steel achieve revenue 22.6 billion yuan, Tory Burch Sandals, an increase of 25%, achieve 1.8 billion yuan, profits, realize the year-on-year increase in net 13.5% 160 million yuan, earnings per share 0.355 yuan, an increase of 11%.
Conclusion.. Corporate earnings basic meet our had expected, a substantial beyond the industry average: company quarter year-on-year increase price annulus, steel, cost increase by 4%, 16 percent, slightly below the price year-on-year increase profits annulus, steel 11%, 5% to 550 yuan/ton.
We prefer daye steel in high-end steel especially forgings areas of extension strategy: 1) first, high quality steel demand remained strong, at present the company forging production already cannot satisfy the existing order contract; 2)Tory Burch Flip Flops company in high quality special ouzhi forging areas of production and design aspects, strong technical force and experience accumulation, has the good market access basis and broader marketing network; 3) citic Pacific efficient management will be beyond rivals the important guarantee. After DaXiao 28220000yuan, forgings completely over 0.5 yuan shall contribute their EPS.
The future will significantly benefit from higher iron rapid development: daye steel is the largest railway use carburizing bearing steel suppliers (about 65 percent), nearly three years railway bearings, mainly for the company income accounts for 17% of 21%, profits than the other part spring steel also used in the railway industry in the domestic steel companies, business income and railway, daye correlation highest.. We remain positive on the strong performance of future earnings deals with strong orders, product structure, continuously improve and citic Pacific's efficient management, we think the company than expected driver will continue. From the order look, is expected to remain strong 2011:1) expected production will remain in the domestic machinery higher level, railway high-growth continue; 2) global manufacturing boom obvious picks up, steel exports will be improved obviously.
3) the domestic steel (especially in high-end) new capacity is less than of carbon-steel,Christian Louboutin Evening Sale,supply pressure products. Investment strategies:
Because forging production, we raised earlier than expected, 2012 EPS to 2011 effect yuan, vale yuan ($1.46 belonged 1.86 yuan), and price target 25 yuan. Current valuations have advantage, reiterated that recommendation: expected future three years compound growth of 22 percent. Comprehensive daye steel unique the profit pattern of steel industry stability, advanced manufacturing attribute, future good growth and efficient management competitive advantage, reference currently steel industry valuation levels, we think that the reasonable daye P/E valuation should be in 20 times above. Now buy rating maintain company stock. (Yang b f.effects XuWei Orient securities institute);