Core view: High gross profit accompanies the recovery of the industry, and the increase in production at low cost. The company's high-grade lead-zinc pyrite (21.23%) has led to a high gross profit of 45.6%. The recovery of the industry (54% increase in zinc prices since the beginning of the year) will surely cause another increase in gross profit. Considering that the company expanded production by 60% in 2015 and gradually reached production, the Group also promised to inject mining assets in the future. We believe that the company will soon enter a fast growth path and buy ratings in the future. Gross profit was nearly 50%, and production increased by 60%. The company's main asset is polymetallic lead-zinc mines. Even with last year's sluggish metal prices, the average gross profit was 45.6%. In terms of production capacity and output, the company began harvesting 1.65 million tons in 2014, and a new 1 million ton selection plant was built and put into operation in June 2015 (production capacity increased by 60%). Total production in 2015 was 1.8 million tons. We expect that from 2016 to 2018, the company's procurement scale will reach 2.3 million tons, 2.5 million tons, and 2.65 million tons. The amount of metals is about 2016:94,000 tons of zinc, 10,000 tons of lead, 2017:103,000 tons of zinc and 11,000 tons of lead, and 2018:113,000 tons of zinc and 12,000 tons of lead. Zinc prices have risen 54.3% since the beginning of the year. It is expected that the upward trend will still be seen globally. The reduction in production or closure of major international mines (Glencore cut production by 500,000 tons, Century Mine closed by 400,000 tons, etc.) will affect global supply by about 12%. There are currently no large enough mines to make up the gap. In terms of demand, zinc consumption was better than expected. Considering the obvious decline in global inventories, we believe zinc prices will continue to rise. Group assets are yet to be injected. Jianxin Mining Group is a company with diversified development, mainly in the mining industry. In addition to the assets of listed companies, the Group also owns mining assets such as Xinzhou Mining, Zhongxi Mining, Shanxi Jinde Chengxin Mining, and Urad Houqi Obragg Copper Mine Co., Ltd. According to the company's promises at the time of restructuring and listing, these mining assets are expected to be gradually injected into listed companies. Net profit increased by 63 million yuan for every 1,000 yuan increase in zinc prices. The buying rating assumes that the price of lead does not change, and for every 1,000 yuan increase in zinc prices, the company's net profit increases by 63 million yuan. With zinc prices rising steadily from 2016 to 2018, the company's EPS is expected to be 0.36, 0.52, 0.60, and PE 27.48, 19.29, and 16.57. Combined with the group company's multiple mining assets and growth brought about by promised injections, it was given a “buy” rating. Risks indicate the impact of changes in the global economy and the economic situation in China on commodity prices.