A sales company owned by Sinopec. Taishan Petroleum is a sales company owned by Sinopec. It is mainly engaged in the wholesale and retail of refined oil products and the refueling of natural gas for vehicles. It is the largest distributor of refined oil products and natural gas for vehicles in Tai'an City, Shandong Province, and has many gas stations. In 2015, the company distributed 489,000 tons of refined oil products, 3.04 million cubic meters of natural gas, achieved operating income of 2.94 billion yuan, and net profit of 104 million yuan. The company's debt ratio is low, and the cash flow is relatively stable. As of the third quarter of 2016, the company's balance ratio was 12.79%, down 2.31 percentage points from the interim balance ratio, and the company's debt ratio was low. On the other hand, the net cash flow from the company's operating activities from 2011 to 2015 was 0.50, 1.31, 1.68, -0.14, and 45 million yuan, respectively, and 49 million yuan in the first three quarters of 2016. The company's cash flow from operating activities over the years was relatively stable. Sinopec's mixed reform is advancing. In August of this year, Sinopec announced that it plans to sell 50% of its shares in the East Sichuan Gas Pipeline Company. Recently, China Life Insurance and SDIC Transportation plan to purchase 43.86% and 6.14% of the shares of the gas pipeline company in cash of 20 billion yuan and 2.8 billion yuan respectively. After the equity transfer was completed, Sinopec was still the largest shareholder of the gas pipeline company, with a shareholding ratio of 50%. The introduction of social capital by pipeline companies shows that the company's mixed reform is progressing further. In the context of Sinopec's mixed reform, Taishan Petroleum's reform and restructuring is worth looking forward to. Profit forecasts and investment ratings. We expect Taishan Petroleum's EPS from 2016 to 2018 to be 0.01, 0.01, and 0.01 yuan, respectively. Currently, the company's BPS (MRQ) is 1.90 yuan. According to this BPS and 7 times PB, the company was given a target price of 13.30 yuan, giving the company an investment rating of “increased holdings” for the first time.