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Wanbao Investment Consulting analyst Wang Rongxu noted that in the September 2 column “How can domestic and foreign legal entities enter the industry simultaneously to keep up with the sedan market? Án Investors are advised pay attention to the transfer pool, especially second-line laminating stocks that benefited from the economic recovery and product prices. They are optimistic that China (1305-TW) will enter the industry peak season, in addition from China’s post-disaster rebuilding and India’s PVC inventory shutdown in the first half of the year. If it is too low, it will trigger a tide of replenishment for PVC, and the price has actually risen recently. Estimated to be expects China’s third quarter to go from loss to profit, and the share price has started to rise.
On the other hand, after the share price of Delta Chemicals (1309-TW), which has benefited from the widening of the ABS spread, broke the 30 yuan mark, it also had a price comparison effect for the Second-tier plastic stocks of 10 and 20 yuan. For example, Taiwan Poly (1304-TW), which has a 36.7% stake in Delta Chemicals, due to the substantial increase in profits contributed by subsidiaries, EPS this year is estimated to be 1.7 yuan , and the stock price has also risen to 17 yuan since September. The proportion increased to 10 times.
Compared to ABS and PS, Delta’s profitability and strong share price performance, Guoqiao (1312-TW) is lagging behind and is expected to offset the increase. Guoqiao’s EPS in the third quarter is estimated to challenge 0.9 ~ 1 yuan, and annual EPS With 2.7 yuan, the current price-earnings ratio is less than 8 times, and it is worth paying attention to the market outlook.
The worst case of commodities has passed the upward cycle of prosperity
Wang Rongxu, an analyst at Wanbao Investment Consulting, said the worst in the commodity market is over. The prices of all products have recovered in the second half of the year. Next year, the economy will recover even more than this year. The commodity boom will enter an upward cycle. Steel prices have also strengthened. China Steel (2002-TW), a major domestic steelmaker, raised its fourth-quarter listing prices in October, and major hot-rolling mill Zhonghong (2014-TW) has raised its product quotes for three consecutive months .
Zhonghong (2014-TW) also has a similar opportunity as Delta Chemical’s product spreads. Flat steel billet raw materials are listed on a contract basis. Therefore, the cost of flat steel billet in the third quarter is expected to be lower than in the second quarter. The third quarter is expected to turn from a loss to a gain, and the fourth quarter will enter the traditional high season for the steel market. Coupled with the rebuilding opportunities created by the floods in China, it is expected to further drive demand from the steel market. Next year, Zhonghong’s performance will be better. The EPS will be seen at 1 yuan. The share price just recently recovered. These types of big bull stocks won’t go up when they don’t, and they won’t lose the power of small and medium stocks.
Orders see upstream textile recovery staggering
The polyester fiber group is also moving quietly, and orders from mid-size garment manufacturers have seen signs of recovery. The share price of clothing manufacturer Ruhong (1476) has doubled from 201 RMB to 400 RMB; Juyang (1477-TW) has also risen for five consecutive months since April, and its share price has reached RMB 200, a record in more than a year.
The bottom of the upstream textile processing silk business operation has ended and orders are expected to recover. The main national silk processing factory Lili (1444-TW) has been classified horizontally for almost a month after an increase in early August; Jisheng silk processing and nylon pellet mill (1455) has recently seen its listing, which shows that the upstream textile market is just around the corner.
Wang Rongxu, an analyst at Wanbao Investment Consulting, said that the turnover speed has been very fast recently, especially the high-level volume of the market has been reduced. There is no space for the index. When the stock price difference is large, the winner is not only better than speed, but you also cannot establish a position. The funds rotate between electronics, biotechnology and production. It would be a shame to give up other money making opportunities just because you are used to electronics. Further analysis of potential stocks will be shared with readers on the Line Fan Club https://line.me/ti/p/@marbo888.
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