The company's leading products are zinc ingots and electric power. Zinc ingots account for about 80% of the main business income for three consecutive years, the contribution to profits has been maintained at about 70%, and the gross profit margin is about 20%, which is the main source of revenue and profits of the company.

Zinc is an important raw material of non-ferrous metals, which is second only to copper and aluminum in the consumption of non-ferrous metals. Considering the factors of supply and demand, we believe that there is still a large gap between supply and demand of fine zinc in 2007. due to the limitation of mineral resources and poor recyclability, zinc inventory continues to decline and zinc prices will remain high. The possibility of continuing to create new highs is not ruled out.

The company's production expanded from 30,000 tons to about 60,000 tons in 2006, and it is expected that the company's production and sales will increase significantly in 2007. In addition, the oxygen pressure leaching process introduced by the company will reduce the cost of the company, and the company's gross profit margin will be increased to a certain extent in 2007.

We predict that the company's earnings per share in 2007 will be about 0.93 yuan. according to the current average valuation level of domestic zinc listed companies and considering the characteristics of the companies listed on the small and medium-sized board, we think that it is reasonable to give the company 14-17 times dynamic price-to-earnings ratio in 2007. that is, the reasonable price is 13.2-15.8 yuan.