The launch tube business will become one of the key points for the growth of the company's main business in the next two years, and the arc interrupter will also maintain the average growth of the industry; the launch tube business is expected to become one of the new bright spots in the future; we need to pay close attention to the overseas market, especially the progress of the European market. The growth rate of business income of arc extinguishing room is about 13.5%.

The replacement of materials in production and management and reducing loss are also important ways to tap potential and increase profits.

The company's business performance in 2006 is basically in line with the previous report. The annual income was 233 million yuan, an increase of 18.4% over the previous year, 6.17% lower than our expected 248 million yuan; the net profit was 12.25 million yuan, 14% lower than the expected 14.21 million yuan; the data of the main products, including arc extinguishers and launch tubes, were basically in line with the forecast; overall, the company's operation was relatively stable in 2006. although the pressure in the arc chamber industry is still high, it has eased somewhat. The launch tube still maintains a high gross margin.

According to the above assumptions, the company is expected to achieve earnings per share of 0.264 yuan in 2007 and 0.342 yuan per share in 2008; according to the current valuation level of the industry, according to the current profitability of the company, the current price is basically reasonable; but combined with the specific situation of the company, we think that other relevant factors besides the main business should also be paid attention to to maintain the company's buying rating.