The company's 2009 three-quarter report shows that in January-September, the company achieved operating income of 405 million yuan, a year-on-year increase of 5.74%; operating profit of 26.99 million yuan, a year-on-year increase of 70.52%; net profit attributable to owners of the parent company was 27.62 million yuan, a decrease of 12.54% year-on-year; and earnings per share from January to September 2009 was 0.12 yuan. Business performance has come out of a slump. The company achieved sales revenue of 137 million yuan in the third quarter, an increase of 8.81% over the previous year. The company's gross margin for the first three quarters was 14.48%, up 0.3 percentage points year on year, and gross sales margin for the third quarter increased 9.8 percentage points year on year. The company's operating profit for the first three quarters maintained a steady upward trend. Overall, the company's operations have broken out of the trough of operating losses in the second half of 2008, and we are optimistic about the full year's operating performance. The main business gradually became prominent. The share of wood-based panel sales revenue in the company's revenue has steadily increased, becoming the company's main source of revenue. The company's glass deep processing business will maintain current production capacity. At the same time, most of the glass deep processing equipment has already been depreciated, so there will be no significant negative impact on the company's business performance. The company's three high/medium density fiberboard production lines are scheduled to be completed and put into operation in the second half of next year. After the production line is completed, the company will add 670,000 cubic meters of production capacity. The company is expected to expand its market share in the southwest regional market. At the same time, the company is close to Guangxi and Guangdong regions and has the advantage of lower freight costs. After adding production capacity, the company will have the ability to further develop the southern market. Preferential tax policies are worth paying attention to. The preferential VAT collection and refund policy enjoyed by the company expired on December 31, 2008. The value-added tax immediate collection and refund policy had a great impact on the company's business performance. In 2008, the company confirmed 27.89 million non-operating income due to this preferential tax policy, which could increase EPS by 0.12 yuan. The preferential tax policy is currently being approved. If value-added tax is levied immediately and refunded, once approved, it will greatly improve the company's operating performance. Profit forecast: Since there is still great uncertainty about whether the preferential value-added tax policy will be approved, this preferential tax policy will not be considered for the time being. The company's earnings per share for 2009 and 2010 are expected to be $0.17 and $0.21. Based on the closing price of 8.35 yuan on October 23, 2009, the company's dynamic PE in 2009 and 2010 was 49 times and 40 times. Considering that there is still uncertainty about preferential tax policies, the company's “neutral” rating has been maintained for the time being. Risk warning: The company's preferential tax policy is uncertain; the risk of fluctuations in raw material prices.