(002457) 2010 7 14 20.00~23.00RMB 24.00~27.00 RMB / / + PCCPPCPRCP PVC-U www.qlgd.com.cn /26.71% PE /26.82% ( ) 104.58 ( ) 35.00 ( ) - (%) 25.08 () 4.38 (%) 24.78 ( % 46.28 35% 68%, 30% 40% RCP PE 2001 RCP 300 1155 32% 2% S1060208120120 0755-22626420 liuyh1@pasc.com.cn 0755-22627752 xuwei850@pingan.com.cn 2010 2011 EPS 1.11 1.27 PE DCF 24~27 2010 PE 22~24 20~23 2008A 2009A 2010E 2011E 2012E 513.99 729.08 855.56 952.86 1059.34 YoY(%) 45.74% 41.85% 17.35% 11.37% 11.18% 74.24 117.01 154.91 177.24 200.27 YoY(%) 22.23% 57.60% 32.39% 14.42% 12.99% (%) 28.96% 32.78% 30.90% 30.28% 30.63% (%) 14.44% 16.05% 18.11% 18.60% 18.91% ROE(%) 21.36% 23.93% 11.53% 11.65% 11.64% EPS( /) 0.53 0.84 1.11 1.27 1.43 P/E() - - - - - P/B() - - - - -

...4...5...7 3.1.... 7 3.2.... 7 3.2.1.... 7 3.2.2.... 8...9 4.1.... 9 4.1.1... 9 4.1.2... 9 4.1.3... 9 4.2.... 10...10...11 6.1.... 11 6.2.... 12...12 7.1.... 12 7.2.... 12 2/14

1DCF...4 2...4 3A...5 4...5 5...6 62009...6 7...6 8 36...7 9...7 10...8 11...9 12...10 13...10 14 PE...10 15 RCP...11 16 PCPPCCP...11 17...11 18...12 19...12 20...12 21...12 22...13 3/14

2010 2011 EPS 1.11 1.27 PE DCF 24~27 2010 PE 22~24 19% 20~23 20% 22 24 DCF 16~27 1DCF WACC(%)g 1.00% 2.00% 3.00% 4.00% 4.65% 27.07 36.51 57.36 141.98 5.65% 20.89 26.87 35.16 55.23 6.65% 16.91 20.13 25.12 33.87 7.65% 14.13 16.30 19.41 24.22 8.65% 12.08 13.63 15.72 18.72 9.65% 10.51 11.66 13.15 15.17 10.65% 9.27 10.15 11.26 12.69 2010 PE 33 2 PEG 1.1 19% 2 EPS PE 2009A 2010E 2011E 2009A 2010E 2011E 2010E % 19 33 25 1.1 002444.SZ 29.0-5.34 0.85 0.96 1.15 34.2 30.1 25.3 1.8 002445.SZ 18.8 7.18 0.55 0.68 0.84 34.5 27.6 22.3 1.1 002446.SZ 17.8 17.56 0.41 0.52 0.65 43.8 34.4 27.2 1.3 002447.SZ 29.0 45.96 0.64 0.82 1.07 45.0 35.3 27.0 1.2 002440.SZ 31.2-5.13 1.04 1.24 1.44 30.0 25.2 21.6 1.4 002441.SZ 39.9-3.06 1.09 1.34 1.62 36.8 29.8 24.6 1.3 002442.SZ 12.5 20.88 0.35 0.57 0.71 36.1 22.1 17.7 0.5 002443.SZ 22.0-0.18 0.76 0.96 1.26 28.8 22.9 17.4 0.8 002396.SZ 23.2 33.75 0.61 0.82 1.04 38.3 28.3 22.4 0.9 002437.SZ 50.0 18.66 0.93 1.33 1.88 53.7 37.6 26.6 0.9 002438.SZ 22.0 38.05 0.39 0.56 0.79 55.8 39.4 28.0 1.0 002439.SZ 25.0 28.32 0.53 0.66 0.88 47.6 37.7 28.3 1.3 002433.SZ 29.8 9.93 0.54 0.69 1.02 55.3 42.9 29.1 1.1 002434.SZ 30.0 4.03 0.81 1.06 1.43 37.1 28.4 21.0 0.9 002435.SZ 15.5 15.16 0.33 0.44 0.56 47.4 35.6 27.5 1.1 002436.SZ 36.5 1.18 0.70 1.01 1.35 52.5 36.0 27.0 0.9 002429.SZ 30.0 10.03 0.53 0.93 1.32 56.8 32.3 22.7 0.6 002430.SZ 18.0 34.78 0.63 0.76 0.96 28.8 23.8 18.8 1.0 002431.SZ 45.0 49.20 0.65 1.09 1.64 69.6 41.3 27.5 0.7 PEG 4/14

002432.SZ 19.4 37.31 0.31 0.48 0.70 61.6 40.5 27.6 0.8 002425.SZ 22.0 13.23 0.55 0.77 1.03 40.3 28.4 21.4 0.8 002426.SZ 14.0 30.09 0.42 0.49 0.58 33.5 28.5 24.2 1.6 002427.SZ 13.5 20.59 0.35 0.52 0.81 38.7 25.8 16.7 0.5 002428.SZ 30.0 102.00 0.62 0.76 0.98 48.3 39.7 30.7 1.6 002421.SZ 20.5 53.07 0.37 0.55 0.78 55.0 37.4 26.3 0.8 002422.SZ 83.4 7.53 1.78 2.58 3.48 46.8 32.4 23.9 0.8 002423.SZ 9.0 11.78 0.29 0.30 0.36 31.1 30.1 25.0 2.6 002424.SZ 40.0 1.33 0.76 1.01 1.32 52.7 39.7 30.4 1.3 002417.SZ 20.0 25.05 0.41 0.53 0.68 48.4 37.4 29.6 1.3 002418.SZ 20.0-5.61 0.48 0.64 0.82 41.3 31.3 24.3 1.0 002419.SZ 40.0-7.35 0.89 1.20 1.53 45.0 33.4 26.1 1.1 002420.SZ 13.8 6.96 0.30 0.43 0.56 45.3 32.0 24.6 0.9 19.28 44.37 32.73 24.78 1.09 WIND A 2010 PE 35 3A EPS PE 7 14 2009A 2010E 2011E 2009A 2010E 2011E 300021.SZ 18.16 0.18 0.45 0.72 101.4 40.4 25.1 002205.SZ 20.28 0.52 0.68 0.98 39.2 29.8 20.7 35 23 WIND 4 5/14

5 PCCP PCP RCP (PVC-U) (HDPE) 62009 7 6/14

3.1. + 1% 1,300 60% 2,000 2010 1,060 PCCP 2,600 2 PCCP 8 36 9 CEIC 3.2. CEIC 3.2.1. 09 62% PCCPPCP RCP 7/14

10 200 500 2008 130 10 1 2 3 3.2.2. 09 32% PEPVC PVC PE PP 2008 1,000 5,000 2 8/14

4.1. 4.1.1 2009 PCCPPCP 95% 40% RCP 60% 30% 4.1.2 11 PCCP PCP RCP PVC-U PE 4.1.3 PVC-C 9/14

4.2. 2001 RCP PE RCP PE A320 12 2.5 5 13 PE 2155 RCP 90km PCCP-LPCCP-E PCP PCCP PCCP-E PCCP-L 90km 55km 40km 20km 0.81.6Mpa 110 630 2,155 8 14 PE 39.87 4.87 ( )" 43.37 ( ) 3.45 10/14

90km DN10503000 RCP 6 15 RCP 105.00 15.94 ( ) 21.33 ( ) 20.48 ( ) 5.65 PCP90 PCCP55 1 16 PCPPCCP 175.00 22.14 ( ) 21.22 ( ) 37.53 ( ) 6.05 PCCP-LPCCP-E 20km PCCP-LDN4001200 20km PCCP-E DN12003600 11 17 105.60 16.90 ( )" 17.73 ( ) 6.02 11 6.1. 11/14

6.2. 2007 2008 2009 64%57%61% 7.1. 18 2007A 2008A 2009A 2010E 2011E 2012E PCP 37.0% 35.2% 35.2% 34.2% 33.2% 32.2% PCCP 34.1% 36.2% 36.7% 35.2% 33.7% 33.7% RCP 30.4% 40.2% 36.0% 35.0% 34.0% 33.0% PE 20.7% 17.9% 23.7% 20.8% 20.8% 21.8% PVC 22.8% 25.8% 31.4% 26.7% 28.0% 28.7% 19 2007A 2008A 2009A 2010E 2011E 2012E PCP / 322.7 473.0 471.0 476.0 473.3 473.4 PCCP / 1,289.0 1,291.0 1,686.9 1,686.9 1,686.9 1,602.5 RCP / 285.0 473.2 410.7 415.7 433.2 419.9 PE / 13.9 13.9 11.7 11.7 11.7 11.7 PVC / 7.9 9.7 8.7 8.8 9.1 8.9 20 2007A 2008A 2009A 2010E 2011E 2012E PCP 84% 69% 81% 90% 86% 86% PCCP 45% 46% 76% 90% 83% 83% RCP 86% 70% 64% 90% 78% 77% PE 57% 54% 60% 60% 60% 60% PVC 75% 85% 52% 52% 63% 63% 7.2. 21 2007A 2008A 2009A 2010E 2011E 2012E (352.7 514.0 729.1 855.6 952.9 1,059.3 45.7% 41.8% 17.3% 11.4% 11.2% (256.6 365.1 490.1 591.2 664.3 734.8 42.3% 34.2% 20.6% 12.4% 10.6% ( 96.1 148.8 239.0 264.4 288.6 324.5 54.9% 60.5% 10.6% 9.2% 12.5% 12/14

22 2007A 2008A 2009A 2010E 2011E 2012E ( 352.7 514.0 729.1 855.6 952.9 1,059.3 YoY 0.0% 45.7% 41.8% 17.3% 11.4% 11.2% PCP 71.8 91.3 98.4 137.1 145.9 166.3 YoY N/A 27.2% 7.8% 39.3% 6.5% 13.9% km 222.5 193.1 209.0 288.0 308.3 351.2 YoY N/A -13.2% 8.3% 37.8% 7.1% 13.9% % 20.4% 17.8% 13.5% 16.0% 15.3% 15.7% PCCP 38.8 53.7 276.9 303.6 349.5 418.3 YoY N/A 38.4% 416.0% 9.6% 15.1% 19.7% km 30.1 41.6 164.2 303.6 349.5 418.3 YoY N/A 38.2% 294.9% 85.0% 15.1% 19.7% % 11.0% 10.4% 38.0% 35.5% 36.7% 39.5% RCP 65.9 99.5 73.8 130.9 117.8 142.9 YoY N/A 51.0% -25.8% 77.5% -10.0% 21.3% PE km 231.1 210.2 179.6 315.0 271.9 340.4 YoY N/A -9.0% -14.5% 75.4% -13.7% 25.2% % 18.7% 19.4% 10.1% 15.3% 12.4% 13.5% 49.7 57.1 54.0 65.1 70.1 68.6 YoY N/A 14.8% -5.5% 20.5% 7.8% -2.1% 3,588.9 4,120.1 4,597.9 5,541.4 5,972.3 5,845.4 YoY N/A 14.8% 11.6% 20.5% 7.8% -2.1% % 14.1% 11.1% 7.4% 7.6% 7.4% 6.5% PVC 115.3 156.8 176.3 180.0 221.5 217.7 YoY N/A 36.0% 12.4% 2.1% 23.1% -1.7% 14,558.8 16,169.0 20,159.1 20,484.0 24,403.4 24,549.5 YoY N/A 11.1% 24.7% 1.6% 19.1% 0.6% % 32.7% 30.5% 24.2% 21.0% 23.2% 20.6% 13/14

: : 2008A 2009A 2010E 2011E 2008A 2009A 2010E 2011E 601 716 1550 1764 514 729 856 953 172 124 840 972 365 490 591 664 123 182 217 238 2 2 3 3 30 30 50 50 30 49 52 59 92 71 101 117 28 41 43 48 176 298 331 374 9 8-13 -29 7 11 12 13 6 7 6 6 164 247 332 340-1 0-0 -0 10 10 10 10 14 8 12 11 80 169 246 256 86 140 186 212 62 61 60 59 5 5 5 5 12 7 16 16 1 1 1 1 765 964 1882 2104 90 144 190 216 385 421 473 504 13 24 32 36 121 95 97 101 77 120 158 180 80 78 126 130 3 3 3 3 184 248 249 273 74 117 155 177 1 20 29 39 EBITDA 105 163 197 215 0 18 27 38 EPS 0.85 1.12 1.11 1.27 1 2 2 2 386 441 501 543 31 34 37 40 2008A 2009A 2010E 2011E 87 105 140 140 125 172 837 837 % 45.7% 41.8% 17.3% 11.4% 136 213 367 545 % 20.2% 62.3% 32.8% 14.4% 348 489 1344 1521 % 22.2% 57.6% 32.4% 14.4% 765 964 1882 2104 % 29.0% 32.8% 30.9% 30.3% : % 14.4% 2008A 2009A 2010E 2011E ROE(%) 21.4% 23.9% 11.5% 11.7% 3 43 90 118 ROIC(%) 25.7% 25.0% 22.3% 21.6% 77 120 158 180 11 16 24 32 % 50.4% 45.7% 26.6% 25.8% 9 8-13 -29 % 31.37% 25.65% 24.80% 25.41% -14-8 -12-11 1.56 1.70 3.28 3.50-84 -99-72 -55 1.10 0.99 2.58 2.76 4 6 5 2-27 -108-98 -29 0.78 0.84 0.60 0.48 43 94 110 40 4 4 4 4 13 8 0 0 4.17 6.24 5.80 5.18 30-6 12 11 109 7 724 43 0.53 0.84 1.11 1.27 64-26 2 3 0.02 0.30 0.65 0.85 0 18 9 11 2.49 3.50 9.63 10.90 12 17 35 0 24 47 665 0 P/E 9-49 13 29 P/B 85-58 716 132 EV/EBITDA 14/14

: 6 300 20% 6 300 10%20% 6 300 10% 6 300 10% : 6 300 10% 6 300 5%10% 6 300 5% 6 300 5% 2010 8 518048 4008866338 (0755)82449257