Low-e glass development trend in the next 5 years

Following the continuous promotion of per capita housing consumption levels, the sensitivity of LOW-E glass will continue to decrease, and the natural growth of LOW-E glass demand will remain relatively fast. Against the background of current energy-saving and emission-reduction, we look forward to boosting the rapid growth of industry demand through policies related to building energy conservation. According to foreign experience, policies are the key driving factor in the turning point of industry demand growth.

Based on the sensitivity analysis we have done in the latter part of the report, we believe that it is expected to maintain a high growth rate of more than 40% in the next five years, and the industry will contain greater investment opportunities.

LOW-E production capacity is second to none: CSG's engineering glass (offline LOW-E) has four production bases from east and west, including Wujiang, Chengdu, Dongguan, and Tianjin. The actual maximum production capacity is about 12 million square meters, with many years in Low- The leading edge in the E-glass industry is the unparalleled scale and quality leader in China.

Connotation value has a significant advantage: The company is the leading domestic LOW-E glass production company with independent intellectual property rights, comprehensive research and development capabilities, to ensure that the company's products meet customer needs from multiple angles, while the production costs are effectively controlled, in the future competition in the initiative Superior position. We speculate that CSG's EPS for 2010 to 2011 are 1.0 and 1.3 respectively. We give the company a target price of 30.00 yuan in the next 6-12 months, which is equivalent to 30 times PE in 2010 and 23 times PE in 2011.

Capacity increase: From 2011 to 2012, the company will have 5 LOW-E production lines connected with production. By then, CSG will have a total of about 24 million square meters of LOW-E production capacity. The rapid production capacity will enable the company to maximize the enjoyment of the industry climate. High profits come.