Century Securities: The rational Environmental protection zone for the day is 42.2-51.5 yuan

Industry furnace kiln Energy saving and environmental protection system solutions leader. Through continuous technological innovation and management improvement, for high-energy, high pollution industry to provide industrial furnace energy-saving emission reduction system solutions.　　has formed the industrial furnace airtight production, furnace gas high-temperature purification and comprehensive utilization of the two major categories of technical systems, with obvious advantages of the first hair. There is a huge market demand for energy saving and environmental protection in industrial furnaces. Industrial furnace closed production device in the calcium carbide industry, the penetration rate is only 20%, in the Ferroalloy industry only about 2%; the utilization ratio of waste heat is only about 5%, with the waste heat or direct burning steam as the main utilization method, the effective utilization is less than 40%.　　With the calcium carbide, Ferroalloy and other industries to promote energy-saving emission reduction standards for industrial furnace energy-saving environmental protection industry opened a huge market space, is expected only calcium carbide, ferroalloy and steel three industry market demand to reach 72.713 billion yuan, 09-12-year market growth will reach 24.22%. Strong technical strength to bring the first advantage. Company 33000KVA closed ore furnace Unit calcium carbide power consumption to 2960kwh/t, Unit product comprehensive energy consumption 0.961tce/t,08 in the calcium carbide and Ferroalloy furnace market share of 19.83%. The company's furnace gas high temperature purification and comprehensive utilization technology system pollutant emissions are only 2%-8% of the national emission standard, the filtration effect reaches more than 99%, and can keep the furnace gas heat energy to the maximum extent.　　With strong technical strength, the company from the calcium carbide industry to ferroalloy, steel and other industries to expand horizontally, while providing system solutions to the direction of development. Raise the investment project is advantageous to alleviate the capacity bottleneck, seizes the market. The investment project is expected to start production in 2011, full production in 2012, with energy-saving and environmental protection closed mine furnace 1.4 million tons/year production capacity and high temperature furnace gas comprehensive utilization system 885,000 tons/year production capacity.　　The implementation of this fund-raising investment projects, will ease the company's capacity shortage of contradictions, effectively consolidate and expand market share, enhance corporate profitability. Profit forecast and pricing: We forecast 2010-2012 net profit of 95 million yuan, 129 million yuan and 177 million yuan, diluted EPS is 1.19 yuan, 1.61 yuan and 2.20 yuan respectively. Combined with the valuation level of industry and comparable listed companies, we think that the reasonable valuation interval of the company is 35.5-43.3 times times relative to the dynamic PE in 2010, and the corresponding reasonable price interval is 42.2-51.5 yuan.