The company is mainly engaged in the retail, wholesale and storage of refined oil products. It is a holding subsidiary of Sinopec. Its business area is mainly in the Tai'an region of Shandong, accounting for more than 80% of the market share of gas stations in the region. The company has 140 of its own gas stations and more than 20 leased and operated. The refueling capacity of a single station is more than 1,800 tons/year, which is lower than the average level of Sinopec gas stations of more than 2,600 tons/year. In recent years, the company's gross margin has been rising year by year. In the first half of this year, the gross profit per ton of oil was over 500 yuan, the net profit per ton of oil was close to 300 yuan, and the return on net assets was 13.23%, showing good profitability. The company's financial situation is excellent. The shareholders' equity ratio is 88.15%, and the average dividend rate for the past 4 years is over 100%. The average dividend return for the next 3 years is expected to be between 7 and 9%, making it the first choice for value investment. The company's potential equity value is 2.91 yuan per share, which is higher than the current net assets of 61% per share. Sinopec will not easily abandon its privatization plan for the company. Taking into account the current average valuation level in the market, it is appropriate to give the company stock a P/E of 12 times that of 2008, that is, the reasonable price of the company's stock is 5.88 yuan, giving the company stock an investment rating of “careful recommendation”.