Daily Insights20080716

Daily Insights20080716

1. China Shenhua Energy (601088): Comment on announcement
Considering the declining overall evaluation level of coal sectors, we lower
company target price from 70.35 yuan to 50.25 yuan. BUY is maintained.

2. Elecpro (002260) goes listing today: PT8.08
We give the company higher than average valuation. Given 08PE 20.71X,
we give fair value at 8.08.

3. Dongfang Electrical Machinery (600875): comments on
announcement
The expected EPS before earthquake is 2.02yuan and 2.31yuan. Present
price has not enough attracts so we maintain the "Add" rating.

4. Xinjiang Goldwind Science and Technology (002202): Comment on
successful bid of franchised right project
We predict gross profit margin of company products to lower by about 3
percentage point. The order is within our hypothesis of earnings forecast, so
we maintain 08 and 09 EPS to be 0.9 yuan and 1.3 yuan. ADD is
maintained.

5. Jiangxi Cement (000789): net profit to grow over 200% in 1H08,
maintain BUY
The listed companies can realize earnings growth through expansion while
maintaining steady gross margin. We reiterate our "Outperform" rating on
the sector.
Breaking news
􀂾 China may alter focus as the economy slows
􀂾 China insists officials keep stable prices as top priority