Profit forecast
At present, the company is mainly engaged in ultra-fine fiber PU synthetic leather industry. We comprehensively refer to the valuation levels of ultra-fine fiber PU synthetic leather listed companies and recent listed small and medium-sized board stocks, combined with the company's current fundamentals and future development prospects, we think that its reasonable valuation range should be 22-27 times, calculated according to the 2012 forecast earnings per share of 1.33 yuan. The corresponding target price range should be 29.26-35.91 yuan, but considering the 75% discount in the secondary market, the final target price is 21.95-26.93 yuan.