The Group's main business is the manufacture and sale of rare earth products and refractory products. Affected by the global economy, the company's rare earth business and demand for fluorescent materials weakened, dragging down the company's annual performance at the end of 2008. From profit to loss of 171 million yuan, turnover during the period was 1,365 million yuan, a slight decrease of 1.5%. Management said that this year's gross margin remained at a level similar to that of the whole of last year, but compared to the first half of last year, it was still poor because the market was still in a good state at the time. Furthermore, although the first phase of the company's pure magnesia project has been completed, the financial tsunami affected demand for refractory materials, causing the plant to be put back into operation. However, as the cement and glass industry begins to recover, it can drive demand, so the pure magnesia project is expected to be put into operation in the second half of the year. The stock price dropped from a high level of 1.83 yuan to 1.35 yuan, which is currently supported. In addition to the fact that some immediate technical indicators are overbought, it can be absorbed by taking advantage of the stock price pullback. The target is 1.67 yuan.

Purchase Price: $1.35 (Current Price: $1.43)

Target price: 1.67 yuan

Support level: 1.10 yuan