The owner of the Company's announcement in 2009 by the three quarters of net profit attributable to parent company forecast of about 1.58 billion yuan timekeeping correction of about 1.732 billion yuan, basic earnings per share of about 1.82 yuan raised to about 2.00 yuan. Performance increase is largely due to the fourth quarter of the domestic construction machinery market demand than expected, lower than expected sales revenue growth; further optimize the product and the company's sales mix, gross margin is expected to increase. After the results in line with our forecast and raised market expectations.
Truck crane business growth is good. By pulling high-speed rail and other infrastructure projects, 2009 truck crane industry rose by more than 20% year on year growth in 2009 than the industry, maintaining a nearly 60% market share. Taking into account the high-speed rail project construction period and the company's industry leading position, we believe that in 2010 the company's truck crane business will remain a 15% growth rate.
Non-public issuance of the project will enhance the competitiveness of enterprises. At the end of 2009 the company announced the proposed private placement of 5,000 to 16,500 the number of shares, the total issued to raise funds not exceeding 50 billion for research and development platform to enhance XCMG construction projects such as the expansion of nine projects, the project is finished revenue is expected to add 15 billion yuan, net profit of 2.25 billion yuan. Additional projects will help improve the company's asset structure, consolidate the leading position in the company's crane business, helping to break the chain of product development and core components.
Based on the Company's results of operations and prospects of good, we maintain our earnings forecasts, given the company valuation of 20 times PE, corresponding to 2010 earnings per share forecast for the reasonable price of 46.4 yuan, maintain BUY.
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· 2010 will usher in a golden age of machinery industry