Baoli Asphalt's expansion into upstream and natural gas business Recently Baoli Asphalt has issued announcements to establish a crude oil processing and production asphalt project in Xinjiang, and to cooperate with Xi'an Huatong Renewable Energy Co., Ltd. to engage in natural gas business. Reviews: 1. To expand upstream business, the project has good profitability 2. Cooperate to develop natural gas business 3. Profit Forecast and Investment Rating With the continuous construction of highways in China, the company's current asphalt production and sales business will remain stable. In the future, the company will develop upstream business and directly obtain raw asphalt. At the same time, it is expected that it will cooperate with Xi'an Huatong to develop natural gas business. If the above two businesses proceed smoothly, the company's future profitability will increase significantly. We expect Baoli Asphalt's EPS from 2013 to 2015 to be 0.18, 0.29, and 0.63 yuan respectively. According to 2014 EPS and 30 times PE, the company will be given a six-month target price of 8.70 yuan to maintain the “increase in holdings” investment rating. 4. Risks indicate the risk of large fluctuations in crude oil and asphalt prices; the risk that the growth rate of investment in highway construction will decline; and the risk that business development will not meet expectations.