Key investment points: The growth of the company's main business and mergers and acquisitions drive performance growth. The company's performance is basically close to our expectations. The main reasons for the increase in the company's performance are: 1. The increase in operating income of the company headquarters and various subsidiaries brought about an increase in operating profit; 2. After the implementation of allotment of funds raised, the scope of the company's financial statement consolidation changed. The increase in performance has raised the company's safety margin, and the company's pump products are traditional businesses, and the stable performance of Warwick Chemical Biological Equipment Company has raised the company's safety bottom line. The performance of these weakly cyclical equipment businesses has raised the company's safety bottom line. The potential for the company's additional projects is huge. The company plans to issue an additional 8,000 shares at an additional price of 1,259 yuan/share, and invest in the automotive hydraulic torque converter project to reach the post-production program, with an output value of 1.88 million units and an output value of 200,000 yuan. The market prospects for hydraulic torque converters are lofty. Hydraulic torque converters are the core components of AT automatic transmissions. Currently, more than 95% of China's automatic transmissions depend on imports. In 2010, China's automobile production reached 18 million units, including about 14 million passenger cars. It is estimated that within the next 5 years, passenger car sales in China will probably reach 20 million units/year, and automatic transmission sales volume can reach 10 million units/year. The company's target market is huge and attractive. The company's hydraulic torque converters are at the leading level in China. The company is the only sheet metal welding torque converter manufacturer in China with independent intellectual property rights. Compared with cast-type hydraulic torque converter products, the company's sheet metal hydraulic torque converter can better adapt to the operating conditions of AT transmissions. Profit forecast and investment recommendations We expect the company's EPS in 2011, 12, and 13 to reach 0.22, 0.30, and 0.53 yuan/share, based on 25 times PE valuation in 2013, with a reasonable value of 13.25 yuan. Recommended rating risk warning: The development process of AT automatic transmissions has unpredictable factors