Tianfu Thermoelectric: the successful production of silicon carbide marks the arrival of a new era

In the first half of 2007 the company achieved the main business income of 490 million yuan, an increase of 26.36% over the same period last year, net profit of $29 million 471 thousand, an increase of 775.46% over the same period last year; earnings per share of $0.12. Consistent with our expectations. The first half of 2007, the company for the sale of electricity, the main business income and profits are showing a trend of rapid growth, the main reason is that the power supply company has a large growth, completed a total power supply 795 million kwh, an increase of 16.7%; the project of 2 * 50MW cogeneration unit and Manasi River Hydropower Station completed power generation to increase the power supply amount, the company in August 2006; and the relevant government departments approved the company raised the price, to increase the company's earnings. Due to the development of Xinjiang Shihezi economy, power supply greatly needs to increase, along with the Manasi River hydropower station and 2 * 125MW cogeneration projects completed and put into production, the company will be able to meet the Shihezi local demand for electricity, electricity profits will in 08 years began to rise sharply. 3 the company's first installation of the new growth of silicon carbide furnace debugging normal operation, a silicon carbide wafer product has been off the assembly line and delivery to customers, the company will organize experts recently held appraisal, according to the user feedback information, the quality of products was identified (plus Beijing base original 2 Taiwan old stove, a total of 5 in Beijing Taiwan crystal growth furnace). In order to ensure that the second half of the silicon carbide project smoothly, the company has ordered 9 new manufacturers to Taiwan crystal growth furnace (3 in Beijing, Xinjiang 6), the first order of growth furnace is expected to be delivered in September and begin installation. We expect 07 years in October, the company will have a total of 14 crystal growth furnace, wafer production capacity will reach 28 thousand / year. Silicon carbide product line and for customers to use, marking the silicon carbide products from crystal growth, cutting, grinding and polishing the entire industry chain has been opened, is an epoch-making event. We expect the company's future SiC production capacity and output will gradually increase, to become the world's leading third generation semiconductor materials SiC suppliers, in order to meet the Chinese defense and rapidly growing demand for industrial LED. We expect the company's 07, 08 and 09 year earnings per share were $0.42, $0.86 and $1.41, respectively. Taking into account the silicon carbide industry chain has been opened up, and the company is currently the only crystal silicon carbide production enterprises, has a strong cost advantage and technological advantages; at the same time the operation of the market has started the company carbon ball project, we give the company a target price of 40 yuan, to maintain the company strongly recommended rating.

Source: Financial Network