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　　 Changjiang Securities

The company plans to use 178 million over raised funds to invest in the construction of the Chongqing Industrial Park Phase I Project to produce energy-saving and water-saving PPR and PE pipes with an annual production capacity of 15000 tons. The project construction period is two years, and the production will be gradually reached in two years after completion. Over raised funds will be distributed in Chongqing, and the market in western and central regions will be expanded faster. The recovery of real estate sales is expected to drive the demand for home decoration. "Steady growth" drives the demand for municipal pipelines. Retail and engineering should be carried out simultaneously to better expand the market and digest production capacity. It is estimated that the EPS from 2012 to 2014 will be 0.91, 1.13 and 1.42 yuan respectively, and the corresponding PE will be 15, 13 and 10 times respectively, maintaining "recommendation".

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