A large-scale copper processing base company with outstanding advantages in industrial chain value integration is the only large-scale copper processing enterprise with a complete industrial chain model in China. The company dominates the country in terms of equipment technology for continuous casting and rolling of copper pipes, and has the technical standards of import substitution. It is the 3rd largest air conditioner copper pipe supplier in China and the 2nd largest air conditioner copper pipe manufacturer in South China. The fund-raising project treats the symptoms, breaks through production capacity bottlenecks, and is in line with changing trends in the industry. The company plans to raise capital in the three directions of precision copper tube capacity expansion, copper tube deep processing capacity expansion, and copper processing equipment expansion. We believe that this measure aimed at solving the bottleneck in production capacity is just treating the symptoms and is extremely targeted. At the same time, it has been able to develop and expand through industry integration opportunities, occupy a larger market share, and achieve a business strategy based in South China and spread throughout the country. The copper tube is the body, and the two wings go hand in hand. The future plan is unique and clear. In the next 2-3 years, the company will continue to consolidate the precision copper tube business, while also feeding back the copper processing equipment and copper tube deep processing business based on the precision copper tube business. We predict that in the next 2-3 years, the company's precision copper tube business will continue to maintain steady growth, while the copper processing equipment and copper tube deep processing business will show strong explosive growth, thus driving the company's overall performance to achieve breakthrough growth. The advantages of industrial chain value integration are outstanding. The reasonable value of each share is 13-15 yuan. Because of its advantages in industrial chain value integration, and deep accumulation in technology research and development, equipment manufacturing, and customer resources, the company can obtain more profits under the trend of changes in the air conditioning pipe industry, making the company have a valuation premium that is clearly different from other copper pipe manufacturers; however, the customer reputation brought about by years of cultivation in the regional market has made the company's products in short supply. The potential market is huge, and future growth space is worth looking forward to. This will also bring the company a growth premium in terms of valuation. Combining the above, as well as the company's relative valuation and absolute valuation calculation results, we believe that the company's reasonable value per share is between 13 and 15 yuan, which is equivalent to 25 to 28.8 times PE in 2009.