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Zhongyuan Securities

The production capacity of the company's single crystal synthetic diamond superhard materials ranks second in the world, and is expected to reach 2.4 billion carats in 12 years; The performance of metal powder will benefit from the gradual release of production capacity and the gradual replacement of the prealloyed powder market, while the market of super hard composite mineral chips will expand smoothly. It is predicted that the Company's EPS after full dilution in 2012-13 will be 0.34 yuan and 0.46 yuan, respectively. Based on the closing price of 8.11 yuan on September 18, the corresponding PE will be 24.16 times and 17.74 times, respectively, maintaining the "overweight" rating.