The traditional wear-resistant materials business leads the industry. Fengxing Co., Ltd. is a high-tech enterprise engaged in R&D, production, sales and technical service of wear-resistant materials. It has now developed into a leading manufacturer of wear-resistant materials in China. At present, the company's total output can reach 100,000 tons. Currently, the company's products basically cover all provinces and cities across the country, with a domestic market share of 6%. After years of development, the company has become the largest professional manufacturer of wear-resistant materials in China. According to statistics from the China Foundry Industry Association, for three consecutive years in 2009, 2010, and 2011, the company's production and sales of wear-resistant casting products ranked first among abrasive balls and grinding section products of domestic wear-resistant materials. Since its establishment, the company has participated in or presided over the drafting of a number of national or industry standards, establishing the company's technical advantages within the industry. The initial public offering of shares raises capital to develop core business. According to the resolution of the 2013 Annual General Meeting of Shareholders, the company now plans to publicly issue 22 million RMB common shares to the public. The net amount of actual capital raised after deducting issuance expenses is used entirely for projects related to the company's main business and the working capital required for the development of the main business, consolidating the R&D technology foundation, enhancing the company's competitiveness and profit level, and consolidating the company's leading position in the domestic wear-resistant materials industry. The wear-resistant materials industry has broad prospects and is in line with the trend of economic growth transformation. It is estimated that by 2015, China's wear-resistant ball segment market demand will reach 2.1004 million tons, an increase of 40.24% over 2010. The rapid increase in market demand is conducive to the continuous improvement of the company's performance. At the same time, China's economic growth pattern has gradually changed from extensive growth to high-quality growth with content. Coupled with the backdrop of continued increase in energy saving and emission reduction requirements, the tide of the times is bound to further grow into an industry giant, Fengxing, which has technological advantages and scale advantages. The valuation analysis takes into account the progress of the company's fund-raising projects and the speed at which production capacity is being released. Combined with macroeconomic trends and the expansion of demand in downstream industries, we expect the diluted EPS for 2015-2017 to be 0.47, 0.63, and 0.82 yuan, respectively. Currently, among the companies listed on the domestic A-share market, only Hongyu Xincai is engaged in similar business to Fengxing Co., Ltd., taking into account the average valuation level of the industry, the company was given a target price of 18.8 yuan, corresponding to a price-earnings ratio of 40 times in 2015, and a buying rating. Not sure about the analysis. (1) Competition in the industry is fierce; (2) the actual results of new projects are yet to be determined; (3) raw material prices fluctuate.