The traditional wear-resistant materials business leads the industry. Fengxing Co., Ltd. is a high-tech enterprise engaged in R&D, production, sales and technical service of wear-resistant materials. It has now developed into a leading domestic manufacturer of wear-resistant materials. At present, the company's total output can reach 0.1 million tons. Currently, the company's products basically cover all provinces and cities across the country, with a domestic market share of 6%. After years of development, the company has become the largest domestic manufacturer specializing in wear-resistant materials. According to statistics from the China Foundry Industry Association, for three consecutive years in 2009, 2010, and 2011, the company ranked first in the production and sales volume of wear-resistant casting products in the domestic category of abrasion-resistant materials. Since its establishment, the company has participated in or presided over the drafting of many national or industry standards, establishing the company's technical advantages within the industry. Initial public offering of shares to raise capital to develop core business. According to the resolution of the 2013 Annual General Meeting of Shareholders, the company now plans to publicly issue 22 million RMB common shares to the public. The net amount of actual capital raised after deducting issuance expenses is used entirely for the company's main business projects and working capital required for the development of the main business, consolidating the technical foundation of R&D, improving the company's competitiveness and profitability, and consolidating the company's leading position in the domestic wear-resistant materials industry. The wear-resistant materials industry has broad prospects and is in line with the trend of economic growth transformation. It is estimated that by 2015, the market demand for wear-resistant balls in China will reach 2.1004 million tons, an increase of 40.24% over 2010. The rapid increase in market demand will help the company's performance continue to rise. At the same time, China's economic growth pattern has gradually changed from extensive growth to high-quality growth with connotations. Coupled with the general background of the continuous increase in energy saving and emission reduction requirements, the tide of the times is bound to further grow into a giant in the industry. The valuation analysis takes into account the progress of the company's fund-raising projects and the speed of production capacity release. Combined with macroeconomic trends and the expansion of downstream industry demand, we expect the diluted EPS in 2015-2017 to be 0.47, 0.63, and 0.82 yuan, respectively. Currently, among the listed companies in the domestic A-share market, the only company engaged in similar business to Fengxing Co., Ltd. is Hongyu New Materials. Considering the average level of industry valuation, the company is given a target price of 18.8 yuan, corresponding to 40 times the 2015 price-earnings ratio, and a purchase rating. Uncertain analysis. (1) Competition in the industry is fierce; (2) the actual results of the new project are yet to be determined; (3) raw material prices fluctuate.