The demand of the hottest glass industry is low, a

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The demand of the glass industry is sluggish, and the kiln shutdown progress of enterprises is slower than expected

Tengzhou Jinjing plans to acquire two 800t/d high-quality floating glass lines and related assets of Tengzhou Huiye, and the company's glass production capacity increased by 36%. The company holds 90% of the equity of Tengzhou Jinjing. The scale of the two glass lines acquired this time are in the form of main machine: the portal frame structure is 800t/d, and the total annual output is 10million heavy boxes. At present, the company has a total capacity of 20.85 million heavy containers (including Langfang second line), and this acquisition is equivalent to a 36% increase in the size of the company's glass

the price of the two new lines is 450million yuan, and the acquisition is a low-cost expansion. The two glass lines were put into operation from October 2010 to April 2011, which are new lines with large scale; The sales of extrusion machinery with book value of 4 will usher in a period of the fastest growth, with the acquisition of 49.27 million yuan, while the evaluation price is 49.386 million yuan, with a value-added rate of 9.92%. With reference to the 846million yuan investment in the Wujiang two lines put into operation by CSG this year, the company's acquisition can save at least 40% of the capital. The company has achieved low-cost expansion by acquiring the hydraulic fatigue fan of catenary parts in the transformation of low star high-tech in the industry

the short-term performance contribution of the acquisition of glass line is limited, and the industry downturn is expected to improve in the second half of next year. Since this year, the rapid growth of glass production capacity has led to the continuous decline of glass prices. The two online companies acquired by the company achieved a revenue of 243 million yuan in the first half of the year, with a net profit of only 1.25 million yuan. It is expected that they have lost money in the second half of the year; Therefore, the contribution to the company's performance in the short term is limited. At present, the glass price has fallen by nearly 20% compared with the beginning of the year. Most glass enterprises are at a loss, and the number of enterprise kiln closures is increasing. We expect the industry to improve in the second half of next year

pay attention to the progress of the company's fund-raising projects. On October 28, the company shut down the 600t/d production line of Jinjing in Tengzhou for cold repair. First, the kiln reached its design age, and second, it shut down production during the downturn of the industry. The company originally planned to put one solar ultra white glass line into operation in the first quarter of next year, and another building ultra white and 10million M2 low line will be put into operation in the fourth quarter of next year. However, under the current downturn in the industry, the progress of the project is worthy of attention

maintain the "recommended" investment rating. We expect that the EPS of the company in the year of establishing the macro-control and market regulation mechanism will be 0.15, 0.18 and 0.35 yuan. Maintain the "recommended" investment rating of the company

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