With the advent of the Olympic Games, the pressure of energy saving and emission reduction has increased, and domestic printing and dyeing factories have been closed, and the supply of dyestuffs has been strained so as to drive up the price of products.

The price of disperse dyes and intermediates has increased by more than 100% since the beginning of the year, while the price of raw materials is far less than the increase in product prices, and the gross margin level of the industry continues to increase.

If the recent textile and garment tax rebates increase, it will help to increase dye demand.

Zhejiang Longsheng (600352): the company is a leading enterprise in the disperse dyestuff industry. It has the pricing power of product price, environmental protection is up to standard and production is not restricted. With the advantage of integration of intermediate and dye, the self-sufficiency of raw material ammonia is realized. The cost of production is much lower than that of other dyestuffs enterprises, and the gross profit margin has risen sharply.

Forecast Ltd's earnings per share in 2008 were 1.46 yuan, and its P / E ratio was only 11 times, and its valuation advantage was obvious.