Earnings forecasts, valuations and investment ratings. We expect PVC production in 2012-2013 to be 320,000 tons and 600,000 tons; caustic soda production is 240,000 tons and 450,000 tons respectively; calcium carbide production is 550,000 tons and 1 million tons respectively; and coal production is 2.6 million tons. In terms of company performance, we forecast that the company's revenue for 2012-2013 will be 4.257 billion yuan and 5.668 billion yuan respectively, with year-on-year increases of 15.38% and 33.14%, respectively. Net profit attributable to the parent company was 629 million yuan and 738 million yuan, up 10.77% and 17.33%, respectively. We expect Inner Mongolia Junzheng's earnings per share for 2012-2013 to be 0.49 yuan and 0.58 yuan respectively. According to the closing price on May 24, the corresponding dynamic price-earnings ratios are 16.9 times and 14.3 times, respectively. We believe that although there is a risk that short-term company stock prices will continue to decline under the pressure of the downturn in the PVC industry, from a long-term perspective, the company's cost control capabilities are strong, the scale of integrated production capacity will continue to expand in the future, and the company's intention to develop coal chemical projects by relying on coal mine resources, which is expected to surpass the chlor-alkali industry chain and advance into a comprehensive energy chemical enterprise, so we give it a “recommended” rating. Risk warning (1) The sharp drop in international oil prices has dragged down PVC product prices; (2) the real estate regulation policy continues to be tightened, and demand for PVC products is shrinking; (3) the progress of project commissioning is lower than expected; (4) the new production capacity is difficult to digest.