Profit forecasting and valuation The company is a manufacturer specializing in island-type microfiber leather. As the company gradually reflects its technological advantages, gross margin will show an upward trend in the future. Based on the company's recent profit situation and the impact of new projects, we forecast that the company's earnings per share in 2012-2014 after dilution of the IPO will be 1.49, 1.89, and 1.97 yuan. According to the average price-earnings ratio level of listed companies that are comparable in the industry, we think it is reasonable to give a price-earnings ratio of 22-25 times. According to the 2012 forecast earnings per share of 1.49 yuan, we expect the value range of the company's secondary market to be between 26 and 30 yuan, which is quite reasonable.