Buying factor: polyol, its chemical product, can be used as a cushion under the railway tracks, and the demand for this product will surge, which is expected to benefit from this huge investment, and the group will increase its production capacity in the future to meet the demand.

The forecast price-to-earnings ratio is only 2.65 times, and the price-to-book ratio is 0.31 times, which is the lowest valuation since listing for many years, fully reflecting the adverse factors. Because of its sound earnings outlook, it seems to be undervalued by the market. Coupled with the strong cash flow of business and state-supported enterprises, there is basically no financial pressure, and speculation is expected to lag behind.

The stock price is still high, the MACD bull spread is still expanding, and the current price has broken through double-top resistance, so it is strong and recoverable.

Purchase price: 1.40 yuan (current price 1.42 yuan)

Target price: 1.60 yuan

Stop-corrosion price: 1.20 yuan