Net profit increased 62% in the first three quarters, thanks to increased revenue and government subsidies. The company achieved operating income of 430 million yuan in the first three quarters, and net profit attributable to listed companies of 26.55 million yuan, up 37.85% and 61.57% year-on-year respectively, and EPS was 0.07 yuan. The increase in revenue was mainly due to the tungsten and molybdenum products industry, but it was followed by a decline in overall gross margin. The gross margin in the third quarter was only 15.60%, and the main operating loss was about 1.48 million yuan. However, in the third quarter, the company received 7 million yuan of government support funds for scientific and technological innovation, and 7.73 million yuan in fair value change revenue, resulting in a net profit of 17.06 million yuan. The acquisition of 25% of Bailey Kangcheng's shares had little impact on the main business. Bailey Kangcheng's main business is the manufacture and manufacture of equipment such as elevators and distribution boxes. In the first three quarters of this year, it achieved revenue of 42.578 million yuan and net profit of 2.79 million yuan. After this acquisition, Bailey Electric will own 100% of its shares, and the estimated asset price is 11.45 million yuan. Looking forward to the superconducting flow limiter project, there is huge room for future development. According to our estimates (see the in-depth industry report “Superconducting Flow Restrictors: Pioneers in the Industrialization of Superconducting Technology”), the domestic market will reach more than 130 billion yuan in the next ten years, with a net profit margin close to 20 billion yuan. As the only listed company with this technology, Bailey Electric has good development prospects. Superconducting flow limiters are expected to be connected to the Internet within the year and will be a catalyst for stock prices. The 220kV superconducting current limiter, which was originally planned to be connected to the Tianjin power grid from August to September, has not yet been delivered. It is expected that it can be connected to the grid and operated within the year. This incident will act as a catalyst for stock prices. Judging from the point of view of time, it will be possible to pass the inspection in half a year to one year after connecting to the Internet. There will be a small number of orders in 2012, and the market will enter the official launch period after 2012. EPS is expected to be 0.10 yuan, maintaining a “buy” rating. Without considering additional issuance, we expect the company's earnings per share for the next three years to be 0.10/0.11/0.14 yuan, respectively. Although it is no longer able to support its stock price in terms of current performance, it still maintains a “buy” rating considering the huge room for superconducting flow limiters in the future.