We believe that the company is one of the important construction machinery companies in China. The company's successful issuance of corporate bonds will help the company get through the current industry downturn steadily. We expect the company's EPS for 2012, 2013, and 2014 to be: 0.81 yuan, 0.89 yuan, and 0.99 yuan, respectively. The corresponding PE is 11.4x, 10.4x, and 9.4x, respectively. We maintain the “gain” rating and give it 14 times PE over 12 years, with a target price of 11.34 yuan. Risk warning. If the growth rate of domestic investment continues to decline, causing the construction machinery industry to continue to be sluggish, it will affect the stability of the company's future earnings.