Profit forecast and investment advice:
We expect the company's EPS from 2011 to 2013 to be 0.19,0.22 and 0.28 yuan respectively, with a corresponding dynamic price-to-earnings ratio of 20 times, 17 times and 14 times, respectively. The company's geographical position is superior, the hinterland economy is developing well, and the company's coal oil products and supplies are sufficient and stable. We give the company a valuation of EPS20 times PE in 2012, with a target price of 4.40 yuan in the next six months, giving the company a "recommended" investment rating for the first time.