Company "flesh" Float Line Fuyao Miss Price Inflation Feast
Some investors questioned the company "flesh" float line too early
, missing the first half of the market price rose a good time.
Late last year, Fuyao closed four large amount of money to build the float line, this 4
Sold 2 of them on another production line, the company resolutely "flesh" was the market float line moves as a "ton output capacity" of the wise. However, as the housing market pick up, float glass prices have been rising, now close to the highest level last year.
Interim report of yesterday the company, still run the two float lines increased gross profit margins for the company out of a force. Some investors questioned the company "flesh" float line too early, the market price rose during the first half missed a good time.
Float Glass-year increase in gross profit
Fuyao Center Daily News revealed that the first half of the company gross margin 38.47%, 33.62% increase over last year 4.85%, gross margin was mainly attributable to the company's gross margin of float glass 23.35%, 14.76% increase over last year 8.59 %. Company explained that the increase in gross margin float glass benefits from the cessation of four building-level float glass production line of the business structural changes and soda ash, heavy oil prices fell.
As the real estate market to pick up, developers speed up the construction schedule, this year, prices continued to rise since the float glass, now approaching the highest level last year. It is because of the strong housing market rebound spurred the market demand for glass, coupled with shrinking capacity, raw material prices are still low, float glass prices soared 50% since bottoming out. United Securities analyst Zhou Huan that the expected price of float glass will continue to rise and break through the high point in 2007, with the capacity to fully release the glass price trend expected to continue into the fourth quarter, will stop.
"Ton output capacity" or making mistakes?
Six months ago, after the third quarter of last year, the economy of domestic float glass fell, the company has on the Jilin Shuangliao, Fuqing, Fujian, Hainan Chengmai three base totaling four float lines to be cut-off drain, a total of up to 418 million yuan of assets less value of the company prepared to sharp drop in performance last year.
The company's "flesh" float line, will the company said in mid-year report, "Following the closure last year, Group 4 float line, and effectively avoid the risk of architectural glass market, the subsidiary during the reporting period Fuyao Hainan Float Glass Co., Ltd. to 4.5 billion in the price of Air China and Hainan Special Glass Materials Co., Ltd. has reached the two float glass production lines shut down and other related asset transfer agreement, and float in the reporting period related to asset transfer provision for Hainan impairment 215 million, the company follow-up business development in traveling light, while the allocation of resources to further concentrate on the main automotive glass. "
"I do not agree in the bottom of the 'flesh' approach and attitude of the company so lightly!" One investor to the "Daily Economic News", told reporters that a few years ago, the company invested heavily in the construction of float glass production line, many investors do not agree with this approach; facing the international financial crisis last year, the company again in the bottom of the "flesh" approach also questionable.
One industry official said, the present, the appropriateness of this decision is still to be seen. In addition, China Merchants Securities analyst Wang Sheng Liu to the "Daily Economic News" reporter, said: "At first, the company's push into their own are not familiar with the construction of the float glass in the field, we would not optimistic; Today companies face difficulties to opt out and concentrate on main attack automotive glass market, short term, result in impairment losses, but in the long run, this is beneficial to a company's development! "
Company "flesh" Float Line Fuyao Miss Price Inflation Feast
By: echo
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