In 2011, the company achieved operating income of 6.608 billion yuan, up 1.61% year on year; operating profit of 377.888 million yuan, down 11.80% year on year; net profit attributable to parent company owners of 355.796 million yuan, up 0.29% year on year; and basic earnings per share of 0.0663 yuan/share. It is planned to distribute 0.10 yuan (tax included) for 10 shares. The company is one of the top 100 construction enterprises in the country. It has special qualifications for general contracting of highway engineering construction and foreign management qualifications, and is one of the most influential road and bridge construction enterprises in Northeast China. During the reporting period, the company won a total of 3.24 billion yuan in bids. The winning projects were mainly distributed in Heilongjiang, Yunnan, Guangxi, Guizhou, Jiangxi, Inner Mongolia and other provinces. A total of 196 project sections have been constructed, and 149 project departments have been set up, including 134 within the province, 9 outside the province, and 6 abroad. There was a slight increase in the gross margin of the engineering contracting business. During the reporting period, the company's main business, the construction engineering business, achieved operating income of 6.569 billion yuan, an increase of 2.05% over the previous year. The gross margin of this business reached 7.42%, an increase of 0.65 percentage points over the previous year, which is the main reason why the company's comprehensive gross margin reached 7.32% in the current period, an increase of 0.40 percentage points over the previous year. The increase in gross margin of the engineering contracting business shows that the company has good project management capabilities. Furthermore, the revenue of the design consulting business was 5.2872 million yuan, an increase of 80.94% over the previous year. The increase was high but the absolute amount was small. Expenses are growing faster. In 2012, the company's management expenses were 156 million yuan, an increase of 12.81% over the previous year, mainly due to the increase in employee remuneration. In addition, financial expenses for the current period reached 54.9 million yuan, an increase of 35.49% over the previous year, mainly due to restrictions on local government financing platforms and tight capital. In order to ensure the smooth progress of construction and production, the company's financing scale increased this year, and bank loan interest rates increased. Revenue from outside the province is growing rapidly. During the reporting period, the company's business revenue outside the province reached 499 million yuan, an increase of 256.91% over the previous year, but the share of revenue was still small, and business within the province was still the company's main source of revenue. Transportation infrastructure in Heilongjiang Province developed steadily during the “12th Five-Year Plan” period. According to the “Outline of the 12th Five-Year Plan for National Economic and Social Development in Heilongjiang Province”, during the “12th Five-Year Plan” period, Heilongjiang Province will build 2,375 kilometers of highways, such as the Suifenhe-Mudanjiang section and the Yichun to Suihua section, and will begin construction of 519 kilometers of highways from Hegang to Yichun and the Sanjiang to Qianshao section, striving to start construction of 492 kilometers of highways from Suihua to Daqing, etc., and 26,000 kilometers of rural highways. and 16 passenger services, including Hassi Integrated Bus Terminal There are 24 freight terminals, including hubs, Longyun Logistics Park, and 69 municipal and county freight terminals and 400 township passenger terminals. By 2015, the province's highway mileage will exceed 4,500 kilometers, grade 2 and above highways will exceed 18,000 kilometers, and rural highway mileage will exceed 140,000 kilometers. The steady development of transportation construction in the province has created market demand for the development of the company's business in the province. In 2012, the company plans to complete main business revenue of 5.8 billion yuan, total profit of 40 million yuan, and net profit of 28 million yuan. Profit forecasting and valuation. We expect the company's earnings per share for 2012-2014 to be 0.05 yuan, 0.06 yuan, and 0.06 yuan respectively. According to current stock price estimates, the corresponding dynamic price-earnings ratios are 66 times, 57 times, and 55 times, respectively. Maintain a “neutral” rating. Risk warning. Increased market competition risks; risk of insufficient signing of new contracts.