In the first three quarters of 2010, the company achieved operating income of 2,525 billion yuan, an increase of 13.62% over the previous year; net profit attributable to owners of the parent company was 30.76 million yuan, reversing losses over the previous year; and basic earnings per share of 0.066 yuan. In the third quarter, the company achieved operating income of 899 million yuan, a year-on-year increase of 22.04%; net profit attributable to owners of the parent company was 1.92 million yuan, a year-on-year decrease of 78.56%; and basic earnings per share of 0.004 yuan. The company's performance was poor due to low prices of soda ash and ammonium chloride in the first three quarters. The ex-factory price of the company's soda ash has recently risen 50%. Since the operating rate of the industry was not high in the early period, overall inventories were low; however, the electricity restriction policies of various local governments led to a decline in production, and the price of soda ash rose sharply. The company's current factory price of lightweight soda ash has reached 2,200 yuan/ton, up nearly 50% within a month, close to an all-time high. Hubei Province, where the company is located, is one of the key power-restricted provinces and regions, and many soda ash manufacturers have limited production. The company's production has not been affected and remains at full capacity. Since the consumption reduction target must be completed this year, it is expected that the relatively high price of soda ash can be maintained until the end of this year. Another product, ammonium chloride, has an ex-factory price of 800 yuan/ton, a price increase of nearly 30%. Costs have risen slightly, but overall profits have increased significantly. The company's coal purchase price has increased. Currently, the company's cost of two tons is around 1,800 yuan/ton, and the gross margin of dual products is close to 40%, and profitability has increased significantly over the previous month. There is still excess soda ash production capacity, and prices will fall back next year. At present, China's soda ash production capacity is still in excess, downstream demand is still sluggish, and price increases due to short-term electricity factors will last for a limited period of time. Profit forecast: Since the acquisition of 55% of Chongqing Yihua's shares has not yet been completed, its impact on the company's 2010 performance has not yet been considered, and is included in the 2011-2012 results. We expect the company's EPS for 2010-2012 to be 0.25 yuan, 0.38 yuan, and 0.41 yuan, and the corresponding dynamic price-earnings ratios are 38 times, 25 times, and 23 times, which is high; furthermore, the soda ash industry is still in a low economic cycle, so we maintain the company's “neutral” investment rating. Since soda ash prices will remain high in the fourth quarter, the performance in a single quarter was relatively good, so investors are advised to pay attention to their transactional investment opportunities. Risk warning: Soda ash prices are at risk of falling sharply after electricity-restricted soda ash companies resume production.