The Five Sector'S P / E Is Below 1664 &Nbsp; Valuation Approaches The Historical Extremum.

Editor's note: since the adjustment in mid April, in just a month, under the impact of various uncertainties at home and abroad, the Shanghai and Shenzhen two cities have plummeted and their new lows are constantly falling.

Among them, the Shanghai Composite Index dropped by more than 650 points, and easily broke the 2600 point.

This newspaper market research center and Wind statistics show that after the sustained and rapid decline of the previous market, the overall P / E ratio of A shares has dropped to 20.02 times.

Compared with the valuation of 13.76 times near the 1664 points of Shanghai stock index in 2008, although there is still a certain gap, the P / E ratio (TTM, the whole method, excluding the negative value) of 11 industries, such as bio medical, power, tourism, building decoration, communication equipment and so on, has been below 1664. The valuation of some industries is approaching the extreme value of history.

Starting from today, this edition will analyze the current valuation of major industries and the valuation of 1664 historical bottoms in terms of price earnings ratio, stock price breaking and breaking up issuance price in a series of reports.

In uncertain market environment, we need to find certainty with relative valuation security.

The overall price earnings ratio of the medical sector is 88.36% lower than 1664 points.

Valuation profile: since the adjustment in April 26th, the overall decline in the medical sector has been 12.37%. As of yesterday, the medical sector index closed at 3310.76 points, and the overall P / E ratio was 42.63 times, which was significantly lower than the 130.99 point of the 1664 historical bottom, and it has become the most significant plate with a value below 1664.

According to the comparable analysis (excluding negative values), the current P / E ratio of 3 medical stocks is close to 1664.

Among them, the current P / E ratio of Tong Zhi medical treatment is only 18.11% higher than the 1664 point level. The first medicine's current P / E ratio is 1664 higher than that of the 1664 level, while the Zhejiang earthquake's current P / E ratio is 38.66% higher than that of the 1664 level.

In addition, the current P / E ratio of leading technology, Tong Jun Ge, Shi Rong Zhao, Nanjing medicine and Cheng Zhi shares is still more than 2 times higher than the 1664 point level.

Industry analysis: in 2009, the revenue of the pharmaceutical sector increased by 14.6%, after deducting short-term investment income and operating income and expenditure, the total profit increased by 40%.

In the 1 quarter of 2010, revenue grew by 23%, net profit increased by 55%, and net profit growth of 49% in raw material sub sectors after a substantial increase of 85%.

The gross profit margin of the board rose steadily, and the management fee rate continued to decline, indicating that the operation quality was improved.

In the 1 quarter of 2009 and 2010, the number of companies that achieved more than 20% growth accounted for 50% and 59%.

In the 1 quarter of 2010, there was a general increase in the performance of the old state-owned enterprises. It showed that under the new medical reform, grass-roots medical consumption began to expand, and the industry competition environment was gradually conducive to the brand scale enterprises.

The main reasons for the first ranking of the pharmaceutical and biological industry are: first, because of the sharp decline in the market, a large number of funds seek shelter from the risk of demand, and the good defensive nature of the pharmaceutical industry is already the consensus of the market.

The two is that the pharmaceutical industry has a solid performance support. Whether it is the whole industry data of the first quarter of the Bureau of statistics, or the 2009 annual report and quarterly report of pharmaceutical enterprises, the performance of pharmaceutical enterprises is very good.

In 2009, the performance of pharmaceutical listed companies was good. Earnings per share increased by more than 100% over the same period last year. There were 27 growth, 14 in the 50%-100%, 21 in 30% to 50%, and 33 in losses. The good performance of listed companies supported the cornerstone of the high value of the medicine sector.

Operation strategy: we suggest that we should hold high-quality white horse stocks and increase stocks that may exceed expected performance.

From the four main lines, we should invest in pharmaceutical stocks, such as increasing price increase, upgrading industries, benefiting common security, leading industrial and commercial areas, and paying attention to the continuity of the main line of "pition of state-owned enterprises".

We suggest holding white horse stock and constantly changing the space for time, such as Yunnan Baiyao, Hengrui medicine, Dong'e donkey hide gelatin, etc., in the adjustment, we will increase the value of the quality companies that are flexible in valuation and exceed the expected performance: Tian Shi Li, Zhong Heng Group, Shanghai medicine, Harbin Pharmaceutical shares, Huadong medicine, unanimous medicine, 39 medicine, Haizheng pharmaceutical and so on.

The overall price earnings ratio of the electricity sector is 54.23% lower than that at 1664.

Valuation profile: since the adjustment in April 22nd, the overall electricity sector has dropped by 15.64%. As of yesterday, the electricity sector index closed at 2073.59 points, and the overall P / E ratio was 28.65 times, which was significantly lower than the 82.88 point of 1664 point historical bottom, which has been reduced significantly to 54.23%.

According to the comparable analysis (excluding negative values), the current P / E ratio of 12 power stocks is below 1664.

Among them, Guangdong electric power A current price earnings ratio is 1664 lower than the 99.13% level; Fulong thermoelectric current price earnings ratio is 88.95% lower than the 1664 level; the current price earnings ratio of laurel power is 77.70% lower than the 1664 level; Guodian power current price earnings ratio is 1664 lower than the 1664 level.

The stock prices of Tong Bao, Dalian thermal power, Anhui electric power and Kowloon electric power have been greatly improved due to sustained growth in performance.

In addition, the current P / E ratios of Guidong electric power, Sichuan investment energy, construction investment energy, Harbin investment shares, ST Mei Yan and other stocks are still more than 2 times higher than the 1664 point level.

Industry analysis: at present, the power industry is still oversupply, but it has improved since 2008, and the profitability of all sub sectors has been restored.

At the level of listed companies, more than half of the income of electric power enterprises increased by more than 10% over the same period; in the 1 quarter of 2010, because of the rising electricity price and seasonal dry water, the profitability of thermal power and hydropower related enterprises was at a low point; there was not much room for further reduction in the rate of cost; investment income accounted for more than 30% of the current operating profit, which became an important stabilizer for the profits of the power enterprises; most of the changes in the profits of enterprises were in line with the industry.

At present, the demand for electricity is still strong.

1-4, an increase of 23.85% over the same period last year.

Among them, the electricity consumption in April was 339 billion 439 million kwh, an increase of 23.08% over the same period last year.

It is mainly caused by two reasons: first, the low cardinal numbers continue to exist.

Affected by the economic crisis, the growth of electricity consumption in the same period last year was -3.63%, the lowest growth rate last year.

Two is the economic recovery, high energy consumption industry capacity growth.

In the 1-4 month, the total electricity consumption growth of heavy industry reached 29.96%, which was 2.7 percentage points higher than the average electricity consumption growth rate.

Due to the continuous drought since June 2009, the number of hydropower utilization hours continued negative growth in that month.

In 1-4, hydropower generation capacity was 133 billion kwh, down 3.1% from the same period last year, and the decline was narrowed. Hydropower utilization hours were 737 hours, down 118 hours compared with the same period last year.

Since entering the flood season in May, the water quality of most river basins in the country has reached the average level for many years or is more abundant than in previous years.

Operation strategy: the listed companies in the power sub sectors will still have the most predictable endogenous growth. In addition, enterprises with special resources such as coal and nuclear power need to be especially concerned.

In the future, based on the improvement of the fundamentals of the industry, such as the adjustment of electricity price and the normal flow of water, there is room for correction in the profitability and valuation of the various sub sectors of the electricity industry. At present, it is a good investment opportunity to focus on Wenshan electric power, Huaneng International, Jinshan shares, Changjiang Electric Power and laurel power.

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The overall price earnings ratio of the tourism sector is 20.79% lower than 1664 points.

Valuation profile: since the April 2nd adjustment, the overall decline in the tourism sector was 22.64%, as of yesterday, the tourism plate index closed at 2561.30 points, the overall market earnings ratio was 45.80 times, compared with 66.59 times the 1664 point historical bottom, down 20.79%, the valuation below 1664 points higher levels of the plate.

According to the comparable analysis (excluding negative values), the current price earnings ratio of two tourism stocks is below 1664 points, and the current P / E ratio of Mount Emei A is 71.42% lower than that of 1664, and the current P / E ratio is 1664 and 0.65%.

In addition, the current P / E ratios of Xi'an tourism, World Expo shares, tri cableway, Dalian Saint ya, Jinjiang shares and Guilin tourism are still 2 times higher than the 1664 point level.

Industry analysis: at present, "inbound tourism in the first tier cities is showing a V reversal". From the first quarter of this year, the monthly data of inbound travel is still relatively large, but the trend of high-speed recovery has been established.

There is a big gap between the regions. The key tourist cities, such as Mount Huangshan and Xi'an, are growing significantly.

The monthly data of domestic tourism reception has a large amplitude. However, the data of some regions have shown that the large-scale ticket sales promotion mode in 2009 has led to the end of the growth of the number of people, and continues to be optimistic about the significant growth prospects of the actual ticket prices this year.

In the first quarter of 2010, tourism in Beijing and Shanghai increased significantly.

Sichuan's accommodation industry has maintained a high growth rate of about 30%, although it has dropped from the high speed recovery after the earthquake.

The rest of the region is relatively stable.

After the high-speed rail is opened to traffic, the speed of pport passengers has been greatly accelerated, and the total number of passengers has been greatly increased. Its advantage in price is also conducive to the residents to choose long-distance travel.

High speed rail has the largest driving force for railway hub cities, and the scenic spots closer to these hub cities are benefiting from more tourists.

The market has recovered unanimously about the boom of tourism industry in 2010.

The sub sectors of scenic spots and star rated hotels deserve particular attention.

The common characteristics of these two sub sectors are that the cost is relatively fixed and the operating leverage is very high, so the space for profit to rebound from the low point is very large.

The common characteristics of these two sub sectors are that the cost is relatively fixed and the operating leverage is very high, so the space for profit to rebound from the low point is very large.

From bottom to top, some companies are in the double favorable range of performance recovery and the power to release profits. Besides, in the current market environment, companies that are safe in valuation and able to make good policies are especially noteworthy.

Operation strategy: from top to bottom, the overall performance of the scenic sub sectors will be better. It is expected that with the arrival of the 2 and 3 quarters of the peak season of tourism, the price increase of the related companies in 2009 will increase gradually with the increase in 2010.

Guilin tourism, Mount Huangshan tourism, Mount Emei A and Lijiang tourism are mainly recommended.

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The overall price earnings ratio of building decoration is 12.98% lower than 1664 points.

Valuation profile: since the adjustment in April 13th, the overall decline of the architectural decoration sector has been 21.28%. As of yesterday, the building decoration index closed at 903.08 points, and the overall P / E ratio was 19.57 times, which was significantly lower than the 32.55 point of the 1664 historical bottom, 12.98%, and became the plate with a lower value than 1664 points.

According to comparable analysis (excluding negative and 6 new shares), the current P / E ratio of 10 power stocks is below 1664.

Among them, the current price earnings ratio of Coda shares is 74.96% lower than the 1664 point level; the current P / E ratio of Sichuan Luqiao is 62.37% lower than that of the 1664 level; the current P / E ratio of China railway construction is 58.15% lower than that of the 1664 level; the current P / E ratio of China Railway is 51.03% lower than that of 1664 level.

In addition, the current P / E ratio of Dagang shares, Xinjiang urban construction, Longyuan construction, Tengda construction and Guodong Construction is still more than 2 times higher than the 1664 point level.

Industry analysis: the profit growth rate is down, and the rear end decoration income growth is better than the civil construction industry.

The level of gross margin declined because cost (steel and cement) prices were higher than the same period in 2009.

The net interest rate has been raised due to the strong control of the three costs.

The overall revenue and net profit growth rate of construction industry and construction sub industry has slowed down slightly, but the rear end decoration and decoration industry is better than the front-end civil construction industry.

The 2 quarter is expected to show the above trend: the gross profit margin is expected to be better in the second quarter than in the first quarter, because the 2 quarter is relatively busy, and the construction conditions are better than those in the 1 quarter.

Net profit margins can still keep increasing.

Net profit and revenue growth of the whole industry and construction sub sectors continued to slow down, and the 2 quarter growth of decoration and decoration will continue to accelerate.

The decline in revenue growth is mainly concentrated in two areas: first, infrastructure companies, because last year, the implementation of the 4 trillion policy stimulus, last year's high base, two is revenue and steel and other raw materials linked companies, the 1 quarter of last year, the implementation of the contract for the first quarter of the 4 quarter of high steel prices signed, and the implementation of the contract for the 4 quarter of last year, the signing of low prices.

From the perspective of net profit growth, 20 of the 34 companies have increased and 14 have declined.

This data is better than revenue growth because the cost control is effective in the 1 quarter.

Operation strategy: overseas economic recovery, subway construction and decoration industry chain.

In the pition period of the business mode, it is suggested that we should pay attention to the opportunity of overfall and rebound. The 2 quarter performance of the decoration and decoration industry chain such as Ya Xia shares, Hong Tao shares, Golden Mantis and so on will still be excellent, but the 2 quarter is the high growth point of the year-on-year growth. The three is the concept of metro construction and the opportunity for further intervention of Guangdong hydropower. On the one hand, the stock price has been fully reactivated, the other is that the subway is encouraged by the state to invest, under the background of policy pressure on the real estate, the subway helps the land to sell, four is the domestic policy tightening, but the international market economy is beginning to recover, and the overseas contract is expected to have a concentrated period of disclosure in the 2-3 quarter. For this reason, it recommends the sinicwood international, China Industrial International, and Gezhouba Dam, which are the largest proportion of overseas businesses. First, the tightening of real estate policy will pass to real estate sales and price declines, and lead to a decline in new construction, which will affect the performance of real estate construction companies, and avoid the real estate companies in the short run.

The five is the big market infrastructure stocks in the performance and the new contract peak background difficult to have big opportunities, the next wave of market rebound is estimated to be the previous hot spot and the current round of overadjusted stocks.

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The overall P / E ratio of communications equipment is 1.13% lower than 1664 points.

Valuation profile: since the adjustment in April 13th, the overall decline of tourism sector has been 21.28%. As of yesterday, the tourism sector index closed at 2089.17 points, and the overall P / E ratio was 29.44 times, which was 1.13% lower than the 30.57 point of 1664 historical bottoms, which is basically the same as the 1664 point valuation level.

According to the comparable analysis (excluding negative and 6 new shares), the current price earnings ratio of Yongding shares is 35.12% lower than the 1664 level.

Wuhan's van Valley, Zhongtian Technology and Changjiang Telecom's current P / E ratio are very close to the 1664 point level, which is about 30% higher.

It is worth mentioning that power sources, *ST waveguides, ST Huiyuan, *ST Shen Tai, *ST Amex and other stocks realized losses.

In addition, Nanjing's panda, Shenzhen sang Da A, Dongxin peace, Heng Bao shares, Dongfang communications, China Unicom, orway communications and other stocks now have a P / E ratio of 1664 points, which is still more than 2 times higher.

Industry analysis: in the first quarter, telecom fixed assets investment amounted to 35 billion 850 million yuan, down 20.2% compared to the same period last year: according to the Ministry of industry and information technology, China's Telecom main business income totaled 209 billion 660 million yuan in the first quarter of 2010, an increase of 5.3% over the same period last year, and the rate of increase was 2.3 and 0.1 percentage points higher than that of last year's 1-2 and last year, an increase of 1.8 percentage points over the same period last year.

In the first quarter of 2010, telecom fixed assets investment amounted to 35 billion 850 million yuan, down 20.2% from the same period last year.

In the first quarter of 2010, the A share communication equipment sector achieved a revenue of 20 billion 816 million yuan, an increase of 11.09% over the same period last year, achieving a net profit of 773 million yuan, an increase of 42.27% over the same period last year.

The main reason for the year-on-year increase in net profit is the increase in net income from investment. The net income of investment in the first quarter of 2010 increased by 47.32% compared with the same period last year, while the investment income in the first quarter of 2009 decreased by 14.7% compared with the same period last year.

In the first quarter of 2010, the network optimization and optical communications were the two largest segments of revenue growth in the company whose revenue grew more than 20%.

In a quarterly report in 2010, the total number of telecom equipment segments in 2010 increased by 11 in the medium term, including Yongding shares and Huaxing business increased by more than 50%. Xinhai Yi and Japan Hai communications increased by 40%-60% in advance, and the other few increased by 30%.

Network optimization companies have century Dingli, Orville communications, 3D communications, Huaxing business; optical communications company has beacon communications, light and fast technology, new Hai Yi, sun Hai communications, hang Tong photoelectric.

In a quarterly report in 2010, the total number of telecom equipment segments in 2010 increased by 11 in the medium term, including Yongding shares and Huaxing business increased by more than 50%. Xinhai Yi and Japan Hai communications increased by 40%-60% in advance, and the other few increased by 30%.

Operation strategy: investors focus on network optimization and optical communication. The market believes that these two sub sectors will maintain high vision in the next 2 years.

The key companies recommended include three dimensional communication, century Dingli, beacon communication, Xinhai Yi and Guang sun technology.