Maintaining the buy-A investment rating: Considering that the company's fund-raising projects have been put into operation one after another, prices are basically stable, the price of upstream raw materials may remain low, but since the speed of production capacity investment may exceed the increase in downstream demand in the short term, the company may adjust the operating rate according to circumstances. We have lowered the company's EPS in 2012, 2013, and 2104 to 0.36 yuan, 0.57 yuan, and 0.77 yuan, respectively. We have long been optimistic about the company's high profit model formed by technical barriers in the high-end silica field. In the future, the European Union, the US, etc. will drive the implementation of domestic green tire standards, which in turn will provide long-term support for downstream demand. We recommend maintaining a buy-A investment rating of 30 times PE in 2012 and a target price of 10.8 yuan for 6 months.