Performance fell by 24% in 2012. In 2012, the company achieved a total operating income of 581 million yuan, an increase of 7.06% over the same period last year; the net profit belonging to the owner of the parent company was 51.25 million yuan, down 24.42% from the same period last year, and earnings per share was 0.14 yuan.

Fund-raising projects have been put into production and product sales have increased. During the reporting period, the sales of all kinds of acrylamide products were 40500 tons, an increase of 21.75 over the same period last year. The sales volume of anionic polyacrylamide for oil production is more than 25000 tons, an increase of 15% over the same period last year. With the launch of the fund-raising project, the sales of cationic polyacrylamide and surfactant increased by 75.52% and 429.48% respectively compared with the same period last year. The company also plans to invest 70 million yuan with its own funds to implement the microbial continuous production of acrylamide technology upgrading project, after the completion of acrylamide production capacity of 80,000 tons / year.

Shengli Oilfield is still a key customer of the company. In 2012, the company sold 24600 tons in Shengli Oilfield Branch, and there are still 3700 tons in the previous contract to be executed this year. Last month, it agreed with Shengli Oilfield to sell 13500 tons of polyacrylamide by August 31, with a contract amount of 221 million yuan, accounting for about 40% of the company's operating revenue. In addition, Dagang Oilfield is likely to become another major customer of the company, and the gradual application of tertiary recovery technology in the aging oilfields in China will increase the market capacity of the company's anionic polyacrylamide products.

Raw material prices fell in the first quarter compared with the same period last year. In the first quarter of 2012, the price of acrylonitrile was above 15000 yuan, and acrylonitrile, as the main raw material, accounted for a large proportion of the company's cost. The price of crude oil fell from a high in the first quarter of this year, and the price of acrylonitrile was about 13000 yuan. overall, the cost pressure of this year should be less than that of last year.

Give the company an "overweight" rating. It is estimated that the company's earnings per share from 2013 to 2015 are 0.17,0.20,0.24 yuan respectively, and the corresponding dynamic price-to-earnings ratio is 64,54 and 46 times respectively.