Profit forecast and rating: Assumptions: 1. Production capacity from 2009 to 2011 is 380,000 tons, 400,000 tons, and 410,000 tons. 2. The prices of ordinary electrodes, special electrodes, solid welding wires, and flux-cored welding wires in 2009 (unit: yuan/ton) were: 4100, 7500, 6900, 12000; 2010 prices (unit: yuan/ton): 4400, 7800, 7100, 12000. The company's earnings per share for 2009-2011 are expected to be 0.69 yuan, 0.89 yuan, and 1.07. Based on the closing price of 17.71 yuan on October 26, the corresponding price-earnings ratios are 26 times, 20 times, and 17 times, respectively. Considering that the company's performance growth is guaranteed and the profitability of the “convertible bond project” is strong, it maintains the “increase in holdings” rating. In addition, there are also possible triggering factors for the company's stock price: 1. The company continues to receive orders from nuclear power construction projects; 2. If GEM Sanying Welding goes public, it may increase the company's attention and raise the overall valuation level of the industry.