Key investment points: Company profile The company went public in September 2009, with an issue price of 13 yuan. It is a non-ferrous metal extension processing industry. It specializes in precision copper tubes, copper tube deep processing products, and copper processing equipment. The main raw materials are electrolytic copper, and the high price of electrolytic copper will increase the pressure on the company's operating capital. The company's business precision copper tubes are the company's leading products. They are mainly produced by the holding subsidiary Jingyi Wanxi (holding 75%). The precision copper tube business accounts for 80% of revenue and 60% of gross profit. From January to September 2009, it achieved net profit of 36.292,400 yuan, which is the main source of profit for the company. The profit of the business mainly comes from processing fees, and the unit processing fee revenue is about 0.58 million yuan/ton. The company's precision copper tube business currently has 30,000 ton production lines, adding 30,000 tons of production capacity for fund-raising projects, for a total production capacity of 60,000 tons. Produced after 11 years. Production is expected to exceed 28,000 tons in 2009, and 33,000 tons and 42,000 tons respectively in '10 and '11. The company's copper tube deep processing products are produced by the parent company and its wholly-owned subsidiary Wuhu Jingyi, with a current production capacity of 3,000 tons. Some fund-raising copper processing parts projects were put into operation in 2009, and the expected output in 2009 is close to 3,600 tons. The copper processing parts fund-raising project will be fully put into operation in September '10, and production capacity will increase to 8,000 tons at that time. However, whether production can reach production is determined based on the order situation negotiated by downstream customers. It is estimated that the product output for 10 and 11 years will be 5,000 tons and 6,000 tons, respectively. The production of the company's copper processing equipment is mainly customized according to the specific requirements of customers. There are relatively few domestic suppliers for this part of the product, so compared with large-scale standardized product production, the gross margin is relatively high, which is an important source of future profit growth. In investment analysis, we are optimistic about copper processing companies. The company expects earnings per share to be 0.54 yuan, 0.64 yuan, and 0.81 yuan in 2009, 2010. Currently, the price of 19.5 yuan corresponds to a price-earnings ratio of about 36 times, 30 times, and 24 times. For small and medium capitalization stocks, we believe that a reasonable or safe price-earnings ratio is 30 times. Since the company's products are in short supply, the company has fund-raising projects, and production capacity has doubled after delivery. Combined with the company's fundamentals and future development expectations, we have given a price-earnings ratio of 35 times after premium, so the current stock price is reasonable, maintaining the “careful recommendation” rating given in the previous weekly report.