The company is the only domestic zinc smelter with a triple production of mining, electricity, and smelting, and has the advantage of self-generating electricity. The company has a comprehensive production capacity of 60,000 tons of zinc ingots per year (30,000 tons in 2005), 3 tons of germanium, 7,500 tons of sulfuric acid, 300 tons of cadmium, 800 tons of lead slag, 2.5 tons of indium and 12,000 tons of ultra-fine zinc powder, and 240 million hours of power generation per year. Since the price of electricity purchased by the company is lower than that of purchased electricity, the use of self-generated electricity can save the company costs. After the company was issued, the majority shareholder, Zinc Electric Company, held 58.56% of shares, and its absolute controlling position remained unchanged. The trend of zinc prices is promising: zinc prices are expected to reach new highs in 2007. China's galvanized sheet production capacity, which accounts for half of zinc usage, will grow rapidly in the future. It will exceed 15 million tons in 2006 and 20 million tons in 2007. Fundamental support is strong. The global zinc gap is estimated to be around 300,000 tons in 2007. Future growth points: gradual release of production capacity+improvement of raw material costs. In 1.06, the company's production capacity expanded to 60,000 tons, doubling. Production and sales have risen in unison. 2. The raw material cost structure will improve in the future. The usage pattern of raw zinc concentrate broke the original ratio of 70% of external procurement and 30% of personal use. The company pioneered a new smelting method - the oxygen pressure leaching process, gradually reducing the ratio between private use and outsourcing, and purchasing more high-speed rail sphalerite for smelting (the production cost is about 2,000 yuan/ton lower than conventional wet zinc smelting). The move gave full play to the company's geographical advantages and met the requirements of sustainable development. Considering that the company's production capacity will gradually be released and the industry is still in an advantageous environment, we believe that the company's reasonable PE was about 15-16 times in 2006 and about 9-11 times in 2007 after full dilution. Based on the company's performance of 06 and 2007 0.75 and 1.11, we recommend that the inquiry range is between 11.25-12.20 yuan.