To fully grasp the 2011 development trend of China’s capital market to discuss investment strategies, State Securities in November 29th, 2010 at the Sofitel Shanghai Jin Jiang’s “Golden State Securities Investment Strategy 2011 report,” today’s schedule held. State Securities (600,109, stock it) insurance, new energy and power equipment brokerage researcher Zhang Shuai think next year the battery will supply.
Zhang Shuai: Many people are more worried about next year, but is not worried about no growth, but did not supply fast-growing demand, we think this should be a fact. Our judgments, too, growing faster than supply growth. Next year the battery is over-supply, prices will fall, one is cost reduction, one is caused by compression of profitability decline. But the price decline is not a comprehensive pessimistic thing, because prices will increase the rate of return is the cost of PV gradually to the barrier. Next year is a little of that this year was a bumper year next year, the battery is relatively small, the logic of investment in the solar industry, this line of the trunk, next year we should be more concerned about the price drop, but not necessarily capacity All can be released. Many people now for next year’s full production capacity compared to say, next year’s forecast is based on this year’s forecast. There is probably not, but other things, including supplies, equipment next year, have a great opportunity, because after all, the total of 30%, 40% growth, especially in the kind of alternative domestic supplies, will increase next year very large. Battery is a very strong cyclical industry, which is from 2004 to the present volatility, we expect the fourth quarter and the first quarter of next year, no problem, but a quarter depending on the context. 2011, there are still growth, but profitability declined. We are optimistic about the main two categories, one category is supplies and equipment at home. These are optimistic about next year.
