Investment suggestion

We predict that the diluted EPS of the company from 2012 to 2014 is 0.63 yuan, 0.71 yuan and 0.77 yuan. At present, the company has 11.52 yuan, corresponding to 18.3x12PE, with a high margin of safety.

Considering that the company will extend downstream after the completion of the absorption and merger (integration of sales channels in the province, blasting service cooperation inside and outside the province), we give the company 27x12PE, the target price is 17.1 yuan, it is recommended to buy.