Great prospects for energy-saving glass

Ordinary glass faces downside risks. At this point in time, the pressure on the supply side is gradually accumulating, and the demand side is difficult to hold more expectations because of real estate regulation. The deterioration of the ordinary glass industry's supply and demand relationship next year will have a negative impact on the industry's profitability. In general, we believe that the downturn in the general glass industry is forming.

The development trend of energy-saving glass is long-term. Under the background of economic restructuring, the space for the development of energy-saving glass is gradually opening up. The implementation of policies and the replacement of demand will promote the development of the industry in the medium to long-term. We continue to be optimistic about the future development trend of the Low-E glass industry. The compulsory promotion of policies and the positive development momentum of the demand side are the key logic for us to be optimistic about the industry.

Under the gradual increase in downside risks of ordinary glass business, we are cautious about the ordinary glass industry. And the country's future changes in real estate policies may bring about phased opportunities for valuation enhancement. We will promptly prompt. However, for the deep processing industry downstream of the ordinary glass industry, we are optimistic about the development of the energy-saving glass industry in the future.

Relative income varieties. Recommended CSG, the company as the leading company in the domestic LOW-E glass industry, with its leading strength in research and development and marketing, with the rapid expansion of production capacity in the next two years, will maximize the industry to enjoy the high profits sustained by the economy. In addition, CSG's new energy business will become an important performance contribution in the future. Our EPS forecast for CSG in 2010-2011 was 0.588 and 0.765 yuan, respectively. In addition, as a good glass company, Jinjing Technology also has the potential for large-scale intervention in the high-end LOW-E glass industry, and it may become the main beneficiary of the development of the LOW-E glass industry in the future.