Profit forecast and valuation

We predict that the company's EPS from 2012 to 2014 will be 0.85,1.04,1.32 yuan. Considering the company's industry position and technical advantages, based on the company's 2012 performance forecast and the industry's average price-to-earnings ratio, we think it is reasonable to give a price-earnings ratio of 18-20 times earnings. We expect the reasonable price in the company's secondary market to be between 15.3 and 17 yuan.

Risk Tips:

Raw material price risk, product sales cycle and quality control risk, macroeconomic policy and tax policy risk.