Give the company an “increase in holdings” rating. According to estimates, we expect Minfa Aluminum's EPS for 2012-2014 to be: 0.31 yuan, 0.44 yuan, and 0.57 yuan, respectively, and the corresponding PE is 43X, 30X, and 23X respectively. Due to limited production capacity growth and falling aluminum prices, it is difficult for the company to perform well in 2012. After the projects under construction are put into operation, the company's performance is expected to increase significantly in 2013. Compared with aluminum processing companies, Minfa Aluminum's current PE is relatively high, but if a stimulus policy is introduced in the second half of the year, then aluminum, especially aluminum profiles, will bear the first benefit. In view of this, for the first time, we have given the company an investment rating of “increased holdings.” Main risk tips: 1. Production capacity under construction is progressing slowly; 2. Stimulus policies fall short of expectations.