After research, we learned that the company's future performance will mainly benefit from the expansion of coke production capacity. The rapid increase in the company's revenue is mainly due to the sharp rise in the prices of the company's main products, coke and pig iron, but at the same time, the cost of the company's products, coke and pig iron, has also risen sharply at the same time. Whether the company's shares are allotted or not, we will continue to monitor the progress of the company's acquisition of related party Xintai Steel and its project to enter coal chemicals, which may bring new profit growth points to the company. Under the general trend of rising energy and resource prices, it is expected that the coke and pig iron industries will continue to be prosperous within the next 3 years. The company's EPS in 2008, 2009, and 2010 will reach 0.63, 0.85, and 1.02 yuan, giving a price-earnings ratio of 20 times that of 2008. We have raised our target price to 12.6 yuan. In view of the current undervaluation of the company's stock price and the fact that the company is a large-scale independent circular economy coking enterprise supported by the Shanxi provincial government, we gave the company a short-term rating of “recommendation” and a long-term rating of A. Risk warning: Coking coal and iron ore, which are the main raw materials for the company's coke and pig iron, are completely dependent on external supply, so it will be difficult to control costs.