Strong price competitive Advantage (figure)

Great Wall Securities company is mainly engaged in lithium battery cathode materials research and development, production and sales, products in the international quality requirements at the same time with a strong price competitive advantage.　　We expect the company to achieve a net profit of $75.28 million and $130.54 million respectively this year and next, respectively, 0.94 and 1.63 yuan per share, with a "strongly recommended" investment rating. Capacity + Sales: The company's existing capacity of 360 tons/month, is expected to August this year, the capacity will be expanded to 580 tons/month. The company IPO funds preparation in Jiangsu Haimen construction of new projects, capacity of the initial set of 3900 tons/year, construction period of 9 months. Company by virtue of better product quality, gradually obtained an important downstream customer recognition, 08 new Harbin Guangyu and Shanghai BYD two important customers, 09 new Sanyo Energy and Shenzhen BYD.　　The expansion of the company's sales channels and production capacity to achieve a good synchronization, follow-up performance growth is worth looking forward to. Power Battery Market: At present, ternary materials and lithium manganese oxide have capacity, and the IPO has expansion plan, is expected to participate in the Japanese and Korean Power Battery experiment soon. Lithium iron phosphate material is currently in the laboratory phase, is the development of industrial solutions to meet the future of High-volume supply. The company has the ability to become the core supplier of power battery cathode materials. IPO fund-raising will provide a very good foundation for the future development of the company, the battery material industry is very prominent feature is "first have capacity, and then customers", the financial advantage of the company's development is critical. We believe that the company's diversified materials and lithium manganese oxide capacity are exploratory construction, waiting for market and product performance further mature, the company can use the super raise funds to expand quickly to grasp the future power battery market opportunities.