The company mainly engages in production and sales of zirconium product series. Its traditional products mainly include zirconium oxychloride, zirconium silicate and zirconium dioxide, and high-value-added products including emerging compound zirconia and zirconia-structured ceramics. It is one of the companies that boast the most complete zirconium products among its global peers.
The two projects contributed their profits since Q2 2009.
Proportion of newly emerged zirconium products saw increase.
Given equity dilution by non-public share issuance, we forecast its 2009-2010E EPS to be Rmb0.55 and Rmb0.88, representing dynamic P/E ratio at 47x and 30x respectively based on closing price of Rmb26.0 on June 4, 2009. “Overweight” rating is hereby maintained.