Textile And Chemical Fiber Plate Strength &Nbsp; Xia Ke Environmental Protection Limit.

Xia Xia environmental protection limit in textile sector, Jinlong shares, Jinying shares, China Textile investment [15.23 7.25%]

Nanjing chemical fiber in the chemical fiber board rose 7.60%, and Huaxi Village and Xinxiang chemical fiber rose more than 4%.

Supplement:

In 2009 1-9, the company achieved operating income of 876 million yuan, an increase of 16.2% over the same period last year, and realized operating profit of 14 million 910 thousand yuan, a decrease of 64.2% over the same period last year. The net profit of the parent company was 13 million 980 thousand yuan, a decrease of 60.8% over the same period, and 0.08 yuan per share.

Gross profit margin declined, the total profit in the first three quarters decreased by 60.4% compared with the same period last year.

Affected by the international and domestic market, the gross profit margin of the company's sales of goods decreased year by year, while the related period cost increased.

In the first 1-9 months of 2009, the gross profit margin of the company decreased by 3.1 percentage points year-on-year, and the sales expenses increased by 66% compared with the same period last year, and the financial expenses increased by 31.8% compared with the same period last year.

At the same time, due to the expansion of production scale this year, the company appropriately increased the amount of prepaid accounts to ensure the supply of raw materials, resulting in a net decrease of 97.7% in cash flow from operating activities.

The output and sales of Anxing company and color textile material distribution center increased, and business income increased 1.9% in the third quarter.

During the reporting period, the company's accounts receivable increased by 34.4% from the beginning of the year, mainly due to the increase in operating income and increased receivables.

In addition, this year, because of the increase of Anxing production capacity and the increase of the coloured cotton production capacity, the inventory increased by 17.5% over the beginning of this year.

In 2009 7-9, the company realized operating income of 307 million yuan, an increase of 1.9% compared with the same period last year. Gross profit margin was 8.7%, down 1 percentage points compared to the same period last year. Net profit attributable to parent company was 3 million 730 thousand yuan, down 59.2% from the same period last year.

The textile industry is getting warmer and the total industrial output value and gross profit are increasing obviously.

At the end of the third quarter, except for the negative growth of exports, the industry's economic indicators reached the highest level since 2009.

In 1-8 months, the total industrial output value of textile enterprises above Designated Size reached 7.5% year-on-year, and the total profit grew by 12.3% year-on-year, which has exceeded the level of industrial profit growth in the early stage of the financial crisis.

Now the textile market production and sales rate increased, orders increased, recruitment increased, textile industry in Shaoxing, Xiaoshan, Suzhou and other textile towns significantly increased electricity consumption, becoming the fastest growing industry in industrial electricity consumption.

30 million shares of non-public offering and 145 million yuan of net proceeds are used to repay bank loans.

The company issued 30 million shares in Shenzhen Stock Exchange in August 31, 2009.

The issue price is 5.12 yuan / share, and the net proceeds are 145 million yuan, which is used to repay bank loans amounting to 155 million yuan.

After the issue was completed, China based mining held 10.4% of the total share capital and became the second largest shareholder of the company.

Risk warning.

(1) the uncertainty of the price trend of products and raw materials; (2) the uncertainty of the normal output of the new 60 thousand ton / year chlorinated polyethylene plant; (3) the uncertainty of the hydrated hydrazine project returning to normal.

Earnings forecasts and ratings.

We expect the company's earnings per share for 2009-2011 years to be 0.09 yuan, 0.19 yuan and 0.27 yuan respectively, and the corresponding dynamic price earnings ratios are 123 times, 61 times and 42 times respectively, based on the October 26th closing price of 11.39 yuan.

Considering that the company's current share price reflects the company's performance, we maintain the company's "neutral" investment rating.