The performance is in line with expectations, and the profit mainly comes from non-operating income and investment income. During the reporting period, the company realized operating income of 582 million yuan and net profit belonging to listed companies of 36.39 million yuan, up 37.20% and 18.92% respectively over the same period last year, with earnings per share of 0.10 yuan. The company's main business actually lost about 7 million yuan, and the net profit mainly came from investment income of 38.3 million yuan and non-operating income of 14.91 million yuan.

Gross profit margin declined significantly, affected by the tungsten and molybdenum products business. The company's gross profit margin fell sharply by 6.27 percentage points to 16.20%, mainly due to the rapid rise of raw materials in the tungsten and molybdenum products business, which compressed the gross profit margin of the processing link. During the reporting period, the gross profit margin of the business fell by 3.37 percentage points to only 3.02%. At the same time, the gross profit margin of high and low voltage electrical appliances also dropped slightly by 1.86 percentage points to 30.82%.

Baili Sifang is expected to become a major growth point this year. Baili Sifang, which was established on December 17 last year, achieved an income of 1.0874 million yuan and a net profit of 248500 yuan. In addition to contributing revenue, the company will greatly improve the electrical intelligence level of the company and promote the development of the whole electrical equipment business of the company.

The superconducting current limiter has not been delivered yet, and the additional issuance still needs to be completed by the board of directors. The superconducting current limiter originally planned to be put on the grid in May this year has not yet left the factory, and the hanging date has been postponed, so the time point of the stock price catalyst has not yet arrived. At the same time, the audit and evaluation required for the additional issuance have been completed, but the superconducting current limiter project is still in further discussion with the partners, and the company expects to complete the decision-making process for the additional issuance of the board of directors in the first half of the year.

This year, EPS is expected to be 0.14 yuan, maintaining the "overweight" rating. Without considering the rights issue, we expect the company's earnings per share in the next three years to be 0.140.19amp 0.25 yuan respectively. Although the current performance has been unable to support its share price, but taking into account the huge room for the future of the superconducting current limiter, temporarily maintain the "overweight" rating.