Investment securities: Tian Li Environmental protection reasonable price for 48.3~56.35 yuan

Energy-saving and environmental protection of the wind blown into the field of industrial furnaces. As the main source of pollutant in China, the energy-saving and Environmental protection task of industrial furnace is becoming more and more urgent. The Government's policy support to the industrial furnace energy conservation and environmental protection has gradually increased, and the industrial furnace energy saving and environmental protection technology products have been developing. From 2006 to 2008, China's industrial furnace energy-saving environmental protection industry in the calcium carbide, ferroalloy, iron and steel three industries in the market scale from 2.14 billion to 3.15 billion, because of energy-saving and environmental protection product penetration rate is still low, it is expected to continue the growth rate, market size will continue to expand,　　2012 is expected to reach 7.42 billion. Industrial furnace energy-saving environmental protection experts, energy saving and emission reduction effect outstanding.　　The company has been committed to industrial furnace energy conservation and environmental development, for high-energy, high pollution industry to provide industrial furnace energy-saving emission reduction system solutions. At present, the company's closed-pit furnace technology belongs to the international leading level, high-temperature furnace gas purification and recycling technology to fill the gap in this field.　　Two technical energy-saving emission reduction effect is remarkable, sales also rapid growth, at present in the calcium carbide industry and Ferroalloy industry market share has been increased from 2% to about 20%, the company's products have strong competitiveness. Subsequent orders to ensure continued growth in the future, profitability is increasing. From 2007 to 2009, the company's operating income continued to increase, the compound growth rate reached more than 90%. In addition, the company's gross profit margin, net interest rate level also steadily increased, reached 52% and 37% respectively, the higher level of profitability, increasing.　　In recent years, by virtue of their own technical advantages, the acquisition of orders gradually enhanced, sufficient follow-up orders, to ensure continued growth in the future. Earnings forecasts and valuations. As a large pollutant emitter and energy consuming, the energy saving and environmental protection problems of industrial furnaces will be paid more attention. At present, the company still has not carried out orders in hand about 400 million yuan, we believe that with the company to launch the project, the company is expected to break through capacity bottlenecks, continue to develop rapidly. We forecast the company 2010-2012 years after the diluted earnings per share of 1.10, 1.61, 2.21 yuan, in accordance with the 2011 performance to give 30~35 multiples, the first day of the market for 48.3~56.35 yuan, to give a discount for the purchase of 20%, the purchase interval for 38.64~ 45.08 Yuan.