Chemical industry: **Stricter fertilizer policies have not changed the industry trend yet

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　　 　　If fertilizer prices continue to rise during the spring planting season, **there may be an increased focus on price monitoring and new policies introduced, but** given its attitude, **it does not want to completely restrict the fertilizer industry**. We believe that, influenced by the international environment, **policies have had no impact on the prosperity of the fertilizer industry. 　　Potash fertilizers pose the lowest policy risks and are the ones that benefit the most from tight international supply and demand; we maintain our positive rating on salt lake potash fertilizers and Guannong Co., as there is room for an increase in profits. Even in case of significant market fluctuations, it is still advisable to buy at lower prices. 　　In 2008, the profits of phosphate fertilizer companies increased significantly compared to the previous year; Liu Guo Chemical is expected to see substantial growth in its performance, so investors can continue to pay attention to it. 　　Nitrogen fertilizer prices are likely to experience seasonal fluctuations, but there is still room for increases in the first half of the year; continue to pay attention to the leading companies such as Hualu Hengsheng, Hubei Yihua, Liuhua Co., Ltd., and Sichuan Meifeng.