The company is a leading cement company in Tibet. Construction and commercial concrete businesses jointly build industrial chain integration. The company's cement production line is located in Tibet. Currently, it has 4 cement clinker production lines through holding and equity participation, with a total clinker production capacity of about 2.48 million tons. In 2015, the company sold more than 3 million tons of cement, accounting for more than 60% of the total cement production in Tibet. In addition to the cement business, the company's construction (highways, water conservancy, railways, construction) and commercial concrete business accounted for about 34% of total revenue in 2015; in 2013-2015, the company's cement business accounted for around 80% of gross profit, which is the company's main source of profit. Supply and demand in Tibet continue to be tight, and the profit level of cement is the highest in the country. Early infrastructure and supporting facilities in the Tibet region are weak, and the growth rate of regional investment has remained at a high level for a long time. In 2009-2016, the CAGR for urban fixed asset investment, highway construction fixed asset investment, and cement production in Tibet was 25%, 30%, and 19%, respectively. The six cement production lines throughout Tibet are basically in full production, and some cement needs to be purchased from Qinghai and other provinces. In 2016, regional high-standard cement prices rose 60 yuan/ton and 150 yuan/ton in April and June, respectively, to 760 yuan/ton, breaking the steady price trend since 2009. Regional cement prices and profit levels greatly surpassed those in other regions of the country. In 2017, the company's new line was put into operation, and the company's profit was highly elastic. Currently, only Qilianshan and the company have plans for a new line in Tibet. Among them, the company's 4000 t/d production line is expected to be put into operation in September 2017, increasing clinker production capacity by 50%, which will drive a significant increase in the company's profit. First coverage, giving a “buy” rating. The recent Tibet Autonomous Region Transportation Work Conference proposed that Tibet plans to complete the investment of 52 billion yuan in fixed assets in transportation in 2017, an increase of about 30% over the previous year. The infrastructure in Tibet is relatively weak. In the future, fixed asset investment is expected to maintain relatively rapid growth over a long period of time, and the company's cement and infrastructure construction business will benefit for a long time. We expect the company's 2016-2018 EPS to be about 0.37 yuan, 0.75 yuan, and 1.12 yuan, which is 20 times that of PE in 2017, with a target price of 15 yuan. Risk warning. Demand has fallen more than expected, and raw material prices have risen more than expected.