Investment logic: Downstream demand is growing steadily, and the oil production injector market with strong entry barriers is growing rigidly: three oil production helps stabilize China's crude oil production, and three oil repellant polymers, and downstream demand grows rigidly. As more large oil fields enter the three-mining stage, the company will show stepwise growth; Daqing Oilfield, with little increase in oil production from three production, the use of dry polymer powder increased from 21,000 tons to 103,000 tons, with a compound growth rate of about 15.6%; according to Shengli Oilfield's proposed “12 to 5” period Powerful Class III reservoirs and offshore The oil reservoir is stepping up research efforts. The goal of “three extractions” to increase fuel by 6.01 million tons does not take into account the decline in fuel repellent efficiency. According to a simple estimate at the end of the 12th Five-Year Plan, the demand for oil repellents in Shengli Oilfield was 99,000 tons, with an average annual growth rate of about 11%; for some time to come, we expect Tarim, Xinjiang Oilfield, Dagang Oilfield, and Changqing Oilfield to be the focus of the three mining markets. Other things being equal, the corresponding future market demand for new polymers in Tarim, Xinjiang Dagang, and Changqing Oilfields will exceed 160,000 tons. China's polymer triplication technology has a comparative advantage on a global scale, and it is possible to enter foreign markets. If it enters foreign markets, it will provide more room for growth; water treatment: cationic polyacrylamide is used in urban water treatment and industrial sewage treatment, and the company may make more progress in water treatment; high barriers to industry entry: technical barriers: different regions, different geological conditions, and oil repellents required at different stages are different; long-term follow-up services and pilot tests are important; customer barriers: since many large oil fields have their own ancillary processing It is not an easy task for enterprises to break through the original pattern of interests and enter new markets; valuation and investment recommendations estimate EPS for 2012-2014 at 0.26 yuan, 0.33 yuan, and 0.42 yuan. According to the closing price on August 21, 2012, the corresponding PE is 47 times, 36 times, and 29 times. Coverage for the first time, giving a rating of increase in holdings.