Electronic cigarette business continued rapid We expect the company 20,132,015 EPS were 0.73 yuan, 0.95 yuan and 1.22 yuan, respectively, corresponding to the current price PE 37.0 times, 28.4 times and 22.0 times. Company's current valuation is not cheap, but with a core competitive advantages and continue to maintain the company recommended rating. Results in line with market expectations: The company announced in 2013 semi-annual report. During the reporting period the company achieved operating income of 406 million yuan, an increase of 82.37% compared to the same period last year, net profit of 5,809 yuan, an increase of 53.82% compared to the same period last year. Results in line with market expectations electronic cigarette battery substantial revenue growth: a significant increase in first-half revenue. Among them, the core business of lithium primary batteries continued to maintain steady growth, with an increase of 18% compared to the same period last year, operating income, the company's largest lithium primary battery downstream application is smart meters, smart meter companies occupy the domestic market share of 80% of the battery, which currently Although the block of business growth is not high but relatively stable, becoming the company's cash flow business. The new lithium-ion battery business achieved revenue growth of 544%, the formation of the company's new core business profitability gradually improve: We believe that the company's profitability is expected to gradually increase, the gross profit margin was mainly due to the continued increase in the electronic cigarette battery. This increase for two reasons: First, the electronic cigarette battery in short supply, companies control pricing,; second is to enhance our production capacity has just finished, from the date of the beginning of the expansion of production capacity to the current 200,000 550,000 Nissan, full postpartum efficiency , is expected to reduce unit costs. From the data, a lithium ion battery product gross margin of 15.8% from last year's annual report this year rose to 23%, which validates our view continue to favor the electronic cigarette market: electronic cigarette market in the early stages of explosive growth, the current base is still relatively low. Global annual consumption of cigarettes 5000000000000, an electronic cigarette is equivalent to 50 cigarettes life, a rough estimate of the electronic cigarette market capacity of up to several ten billion. We believe that the future growth of the electronic cigarette market depends mainly on changes in the extent and intensity of the electronic cigarette manufacturers marketing consumer perception, is expected over the next three years the electronic cigarette market compound growth rate of 50%, the company as a leading battery will fully benefit from risk factors: new entrants into the electronic cigarette battery market competition led to Report Column Description: If you believe this snapshot infringing article, please click on Report column fill infringement that we will deal with the snapshot 3 within three working days, due to technical reasons, the snapshot generation process may be garbled, missing text and other circumstances, it is not intended to modify the original, ask the user to the original fiscal strongly recommend browsing at 4, if you believe that the snapshot of the original or the original copyright influential, can be fed in the report, and asked Choi will promptly delete the temporary page storage.click to read more