The most popular glass price in South China was sl

2022-07-31
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The glass price in South China is slightly better than the previous expectation

the obvious supply side has led to a significant contraction in the weight and cost reduction of parts suppliers and OEMs, coupled with the improvement in demand, as the concept and development mode of "interconnection +" have been deeply rooted in the hearts of the people. As a result, the glass price in South China is slightly better than the previous expectation. It is expected that the price will still be in the rising channel before June, and the high point may be about 1800 yuan/ton, exceeding the high point in May last year. Although central China has capacity to be built for ignition, historically, when the price difference between the two places is less than 400 yuan/ton, central China's glass will not flow to South China to form an impact. At present, the price of central China's white glass is about 1400 yuan/ton, so the price in South China is relatively safe below 1800 yuan/ton. Of course, due to the large potential of China's real economy, today's supply (water-cooled line repair and completion of the line to be ignited) will have a suppressive effect. It seems unlikely that the glass price will continue to rise sharply in the second half of the year

as the first quarter of last year was the low point of the industry, the performance of listed Glass Companies in the first quarter of this year will be significantly improved year-on-year, especially the companies whose main markets are in South China, such as Qibin group and CSG a (Qibin eps0.18 yuan in the first quarter of last year, but 0.001 yuan after deducting non recurring profits and losses). Therefore, we believe that the above two companies have trading investment opportunities and maintain the "buy" rating. It is estimated that the EPS of Qibin and CSG in 2013 will be 0.40 and 0.38 yuan respectively, an increase of about 100% and 190% over 2012, and the dynamic PE in 2013 will be 18.4 and 23 7x, Pb 1.9x and 2.7x respectively. The content of this article is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk

Zhonghua glass () Department

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