According to the sulfur price of 5100 yuan and 5000 yuan per ton in 2008 and 2009, the EPS of the company in 2008 and 2009 is 0.47 yuan and 0.66 yuan respectively. Taking into account the company's leading position of barium, strontium salt and manganese dioxide; rich manganese ore and coal resources; and sulfur prices may rise more than expected; electrolytic manganese dioxide price increase is expected to be strong in the near future, given a "cautious overweight" rating.
If the sulfur price continues to rise sharply, the company's profit will exceed our forecast; every 100 yuan change in the average sulfur price will have an impact on the company's EPS of about 0.012 yuan.
Risk hint: the price of sulfur fluctuates greatly in history, and sulfur accounts for a high proportion of the company's profits in 2008 and 2009. if the price of sulfur falls sharply, it will have a great impact on the company's profits.