We estimate that before the reorganization, the EPS of Nanling Mindang from 2012 to 2014 is 0.40,0.47,0.53 yuan respectively, and the corresponding PE is 33x, 28X and 25X times, respectively.

It is estimated that after the integration, the diluted profit of Xinnanling Minbao from 2012 to 2014 is 0.63,0.68,0.73 yuan, and the corresponding PE is 21x, 19x and 18x, respectively. Considering that our profit forecast for Shenax Min Bang is quite conservative, and after the completion of the integration, the company will form a complete production-circulation-blasting industrial chain, the blasting business expansion in Xinjiang and the integrated service platform of China Railway materials are expected to help the company to achieve great-leap-forward development of blasting business. And considering that the final share price of the acquisition of Shenax Minbao is 15.66 yuan per share, the current stock price has a certain margin of safety. Cover for the first time and give recommended rating.

Risk hint.

1. The progress of mergers and acquisitions fell short of expectations.

two。 Blasting business.