The company is mainly engaged in the development, production and sales of modified asphalt products, and is a leading enterprise in the modified asphalt industry in central China. The share of the company's products in the modified asphalt market for newly built expressways in China has always ranked at the leading level in the same industry in the country. In the future, the company faces a favorable external development environment, and the modified asphalt industry will maintain a steady growth momentum: on the one hand, the government's increased investment in infrastructure will not weaken, and demand for new construction projects will maintain a steady growth trend; on the other hand, as highway mileage continues to accumulate, road renovation demand and road maintenance demand will maintain a certain growth momentum. The company's steady business style, mature profit model, and industry-leading market share have enhanced its ability to withstand risks; in the future, as fund-raising projects are put into operation one after another, the production capacity bottlenecks that limit the company's development will be eliminated, and the company is expected to gain an expansion of sales channels and an increase in brand influence, and since then it has entered the fast track of development. We forecast that from 2010 to 2012, the company's net profit attributable to the parent company will be 0.50, 0.61, and 71 million yuan respectively, up 41.72%, 22.75%, and 16.50% year-on-year. Based on the issued share capital of 27 million, that is, based on the total share capital of 107 million shares, the fully diluted EPS is 0.465 yuan, 0.571 yuan, and 0.665 yuan respectively. In view of the company's leading position in the industry and the development trend of the industry, we gave the company 30 times PE in 2010, and the reasonable valuation of the corresponding company was 13.95 yuan/share.