Tianrui Instruments: Three Reasons Result in Predicted Decrease in First Quarter Results

Tianrui Instrument released the first quarter of 2012 performance forecast: Attributable to the shareholders of listed companies net profit of 13 million -16 million, a decrease of 17% -33%, compared with 19.9384 million yuan the same period last year.

We believe there are three main reasons for the decline of the company's net profit: (1) The company received a government listing award of RMB 6 million in the same period last year; (2) Most of the regularly raised super-raised funds did not recognize interest income; (3) There was investment in sales. Increased. Under the policy-driven environment-friendly analytical equipment requirements and the launch of the company's mass spectrometer series to the market, the company has long-term growth momentum. The current share price corresponds to about 2011-2013 PE of 26, 20, and 16 times respectively. Buy rating.

Risk Warning: Uncertainty exists in the development of new product markets; the process of policy-oriented environmental protection analysis instruments is difficult to grasp; industry competition is intensifying.