Profit forecast

Considering that the joint-stock reform of Sujing Group will reduce the proportion of minority shareholders in Chuangyuan Technology and increase the growth rate of Sujing, we have raised the company's profit forecast for 2011. The diluted EPS for 2012-13 is expected to be 0.34 yuan 0.58 yuan and 0.74 yuan respectively, an increase of 42.89% 70.80% and 27.74% respectively over the same period last year.

Investment suggestion

As of November 16, the company's share price of 14.79 yuan corresponds to 43.5X11PE and 25.5X12PE, and Dalian electric porcelain's closing price corresponds to 45.2X11PE and 31.8X12PE. Taking into account the leading position of the company's electric porcelain business and Sujing environmental protection business attributes, maintain the "buy" rating.