In 2009, the company achieved operating income of 594 million yuan, a year-on-year decrease of 2.20%; operating profit of 27.11 million yuan, an increase of 74.95%; net profit attributable to the parent company of 40.39 million yuan, an increase of 29.11% over the previous year; the company's distribution plan for 2009 was 1 yuan for every 10 shares (tax included), an increase of 10 shares. The non-board business affects the company's performance. The company is mainly engaged in the production and sale of wooden boards. The decline in the company's revenue in 2009 was mainly due to a decrease in revenue from the non-board business. Affected by the end of early construction projects, the company's project revenue fell by 22.44%, and other non-board sales businesses also experienced a significant decline. Over the same period, the sales revenue of wooden boards increased 15.7% year on year, and the company's business concentration increased. The reduction in advertising expenses during the reporting period was the main reason for the increase in the company's operating profit. A number of benefits boosted the company's performance in 2010. (1) In 2010, the company will put into operation two fiberboard production lines with a total annual output of 670,000 cubic meters. After production is put into operation, the company's total fiberboard production capacity will reach 1.2 million m3/year, ranking first in southwest China; (2) the company will continue to enjoy the preferential tax policy of immediate collection and refund of value-added tax in 2010, with a tax rebate ratio of 80% in 2010; (3) in 2010, the company is expected to save 10 million yuan in electricity costs. Optimistic about the fiberboard market in Sichuan. About 65% of the fiberboard consumption structure is used in the manufacture of wooden furniture. Sichuan Province is the main furniture production base in the southwest region, and has good timber resources and labor cost advantages. Currently, some coastal furniture manufacturers have begun to migrate to the west. Among the four major furniture production clusters in the country, Sichuan had the highest growth rate in furniture production, and maintained a growth rate of more than 10% in 2009. We believe that the furniture manufacturing industry in Sichuan will maintain a relatively rapid growth rate in the next few years, which in turn will drive demand for fiberboard. Refinancing may begin in 2010. The company invested 1.4 billion yuan to build a new fiberboard production line. The company mainly settled through debt in the early stages, leading to a continuous increase in the company's balance ratio. After the production line was put into operation, there was a high demand for working capital, and the company faced a certain amount of financial pressure. The company said it would consider refinancing from the stock market this year. Profit forecast and rating: The company's EPS for 2010 to 2011 is expected to be 0.38 yuan and 0.62 yuan respectively, and the current stock price is 13.33 yuan. The corresponding PE is 35 times and 22 times, respectively. Considering the company's performance growth potential, the company's rating was raised to “increase holdings.” Risk warning: risk of rising timber prices; risk of fluctuations in fiberboard prices.