Company technical level of the products are very confident that the future price of a single higher prices than existing products abroad

Current research and development of the first prototype has been assembled, in January, is expected to complete the installation debugging.

Profit forecast and investment advice: we expect the company from 2011 to 2013 EPS was 0.68 yuan, 0.83 yuan and 0.83 yuan respectively, corresponding to the p/e ratio is 27.4 times, 22.5 times and 22.5 times respectively, maintain the company "recommended" rating.

Risk tip: grid tie power inverter to bring equipment falling demand slump; Technology is led to the replacement product.

Read company mainly in new product and capacity will be around 2013, r&d progress and must be accepted by the customer's degree of technical risk.

Nanyang technology: waiting for industry recovery and high-end film products

Inhibited by optimizing product structure trend of decline in gross margin.

Traditional business polypropylene film capacitor capacity around 12000 tons um um ~ 8 (7), more than 20% domestic market share, at first.

Polypropylene prices are high because the cost of end, and at the bottom of the polypropylene film products price also in the history, the modified sine wave inverter is still in the difficult time.

Company 2012 years ago in the third quarter gross margin is only 26.34%, compared with the same period in 2011 declined 15.08%, the periodic characteristics of the product was very obvious, and we think the possibility of a rebound over the next few months the price is not particularly big, the product price is the same thickness at the beginning of 2013 total average dropped by about 20% in 2012.

But compared to peers, nanyang technology remains relatively high levels of gross profit margin, we think that with increase of the super capacitor under 6 um film company sales proportion, the gross profit margin on the super capacitor under 6 um film around 10 points higher than the traditional products, we estimate the super capacitor under 6 um film sales accounted for more than 12 years at around 30%.

Back film, coating and nuclear pore membrane is expected to become an additional revenue in 2013.

Super fund project of solar battery back membrane project finished installation and debugging, and succeeded in feeding, and our contribution is expected to begin in the second half of this year is expected to income.

Coating and nuclear pore membrane projects trial is unqualified, we estimate that is expected to begin in the second half of this year.