Chen Wei: This Year'S Textile Industry'S Recession Is More Affected By Exports.

In the evening of July 27th, Xinhua pharmaceuticals and Zhejiang Longsheng announced that the profit of two companies in the first half of 08 years increased by 8.04% and 62.90% respectively over the same period last year.

Is their performance in your expectation, do they have value investment?

What is the future of its plate and industry?

In this regard, in the afternoon of July 28th, the "special report on the 360 issues" was published in a series of "special topics" in the nineteenth issue of the "big news report", which invited Chen Wei, chief strategist of national securities, to answer the above questions.

Ho sum network: we see another group of data, Zhejiang Longsheng semi annual report shows that in the first half of 2008, the company's net assets increased by 11.04%, thereby increasing the company's asset liability ratio to 51.62%.

Does this increase in liabilities also lead to the corresponding enlargement of the company's investment risk?

Chen Wei: the dyestuff industry is more textile, and this year the textile industry is depressed, and today's export impact is also relatively large. This will inevitably affect the accounts receivable of Longsheng. This will make the enterprise short term cash flow not big, so that debt will have to arise. This will cause the debt and assets ratio to rise. It is indeed a risk for the company.

But I think there will be some improvement in the second half of this year, because the central leaders have frequently visited the relevant enterprises in Zhejiang, Shanghai and Guangzhou recently. They think that the export sector has been greatly affected, especially the export tax rebates of many textile enterprises, which will be beneficial to ease the cash flow of textile enterprises.

In the second half of this year, the relaxation of macro-control will slow down the pressure of textile enterprises, so that the accounts receivable of Zhejiang Longsheng will be reduced.