Investment highlights: The company issued an announcement stating that the company recently received a notice from Bailey Electromechanical Group that the acquisition of 58.74% of its shares in Tianjin Pump Industry Machinery Group Co., Ltd. from the actual controller, Tianjin Bailey Electromechanical Holding Group Co., Ltd. has been approved by the Tianjin Municipal State-owned Assets Administration Commission, and that Bailey Electromechanical Group transferred 58.74% of its shares in Pump Industry Group to Bailey Electric at a price of 10.106 million yuan. The group company's overall strategic goal of listing high-quality assets has gradually been achieved: the company is the listed investment and financing platform for Tianjin Electromechanical Holding Group. Since launching a targeted increase plan in 2008, the market has strong expectations for the overall listing of the Group's assets. The company also aims to expand and strengthen and gradually complete the overall listing of high-quality assets of Bailey Electromechanical Group as its strategic goal. At the end of 2009, the company launched two asset acquisition plans, one of which was the acquisition of 58.74% from the actual controller, Tianjin Baili Electromechanical Holding Group. The acquisition has now been approved by the State Assets Administration Commission, and the company's mechanical and electrical equipment manufacturing industry chain will be further extended, which is conducive to leveraging synergies and enhancing the company's competitive advantage. Increased profit sources and increased profitability: Tianjin Pump Machinery Group is one of the largest, most comprehensive, and professional manufacturers with the strongest R&D, manufacturing and inspection capabilities in the domestic screw pump industry. As of the end of October 2009, Tianjin Pump Machinery Group Co., Ltd. had total assets of 2387,179 million yuan, total liabilities of 164.5949 million yuan, net assets of 73.22,300 million yuan, total profit of 16.689 million yuan, net profit of 16.1623 million yuan, net profit of 8.74%, net profit of 8.74%, net profit of 8.74%, net profit The return on assets was 22.1%, and the return on total assets was 6.78%, far higher than the profit level of Bailey Electric. The company's acquisition of 58.74% of Tianjin Pump Machinery's shares will not only extend the mechanical and electrical equipment manufacturing industry chain, but also increase profit sources, and the profit margin and yield level will be effectively raised. The construction of the Binhai New Area boosts the company's future development: The company is the only listed company in the Binhai New Area economic circle engaged in the production of electrical equipment. It has products such as medium and high voltage switchgear, medium and low voltage electrical components, high voltage transformers, and dry-type transformers to form a complete electrical equipment industry chain. In the future, large-scale investment and construction in the Binhai New Area will surely bring great help to the company's development. Profit forecast and investment rating: We expect the company's 2010-2011 EPS to be 0.16 yuan and 0.28 yuan. The current stock price is 16.91. The corresponding PE is 105.7X and 63.4X, respectively. This reflects the Group's asset injection expectations and maintains a “neutral” rating.