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 0.98 yuan and 1.15 yuan respectively. According to the closing price on May 11, the corresponding dynamic price-earnings ratios are 17.9 times and 15.3 times, respectively, giving a recommended rating. Risk warning (1) The sharp drop in international oil prices has dragged down the price of PVC products; (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.