As a typical manufacturing enterprise, the company was greatly affected by the financial crisis, and performance stability was biased. The two major businesses, coke and pig iron, are facing overcapacity in the industry and insufficient upstream resources. Although the current business conditions have gone through the worst period, they are still facing operational difficulties. Currently, the capacity utilization rate of the company's coke business is 60% to 70%, and it is in a break-even state. The sales price of coke is around 1,750 yuan/ton, which is basically the same as the local market price. The raw materials for coking coal are mainly purchased from local coal washing plants, which also follow the market price. The company's coke utilization rate is expected to remain at the level of 70-80% throughout the year, and the price of coke is expected to remain fluctuating at the center of 1,700 yuan/ton throughout the year, maintaining a marginal favorable state. The pig iron business is still in the process of digesting inventory. The company has large stocks of high-priced iron ore. Currently, it is still in the inventory digestion stage. As of the end of February, it still had 346,000 tons of iron ore in stock. The pig iron business operations are at a loss. The pig iron business is expected to remain at a loss in the first quarter. It is unlikely that Xintai Steel Group will inject in the short term. The main reason is that the steel industry is sluggish, and Xintai Steel's profitability is poor. Huge inventory impairment losses affected the company's 2008 results. According to the company's 2008 report, a total of 142 million yuan was lost due to inventory price drops in the fourth quarter, affecting earnings per share of about 0.15 yuan. In the first three quarters, the company's net profit was 189.7 million yuan, while the fourth quarter lost 174 million yuan, and the annual results were only 0.014 yuan. Ratings and investment recommendations: The company's operating performance in the second half of the year may be better than in the first half. It is expected that investment in 2009 will drive the gradual recovery of the macroeconomy, and the company will turn a loss into a profit in the second half of the year. However, as a typical processing enterprise, the coke and pig iron businesses all face overcapacity in the industry, and it is difficult for business performance to improve significantly in the short term. The EPS is expected to be 0.076 yuan and 0.186 yuan in 2009 and 10 years. The current net assets per share are 2.90 yuan, corresponding to the PB value of 1.86 times the current stock price. It is at the center of the company's historical valuation, giving it a “neutral” rating.