Investment advice:

We believe that the company has actively implemented the product focus strategy and established a leading position in the vacuum interrupter industry. After the release of the company's production capacity, the focus on the company's performance is basically clear. That is, the expansion of production capacity will not greatly promote the company's performance than expected, while the price fluctuations of upstream raw materials, customer structure adjustment (overseas markets and domestic high-end customers), product structure adjustment (sealed products) will be the key to determine whether the company's final performance can exceed expectations. We estimate that the EPS of the company from 2011 to 2013 will be 0.03,0.09,0.17 yuan respectively, and the corresponding PE will be 276.5 times, 104.1 times and 52.8 times respectively.