(1) the EPS of the company in 2010 is 0.19 yuan, which is in line with expectations. The company achieved operating income of 1.34 billion yuan in 2010, up 11.75% from the same period last year, mainly due to the increase in product sales and a rebound in market prices; due to the high price of raw material steel, the company's annual gross profit was 56 million yuan, up only 4.7% from the same period last year. The EPS is 0.19 yuan, which is consistent with the forecast in the previous report.

(2) Steel wire rope is the main profitable product of the company. The wire rope income was 940 million yuan, an increase of 8.8% over the same period last year, accounting for 70.18% of the operating income, and the gross profit accounted for 98.5%. The steel wire revenue was 380 million yuan, an increase of 18.56% over the same period last year, accounting for 28.1% of the operating income.

(3) in 2010, the market share of the company's steel wire and wire rope products was 18.71% and 20.69% respectively, continuing to maintain its leading position in the market.

(4) starting from 2011, the company will start the work related to relocation, and the relocation work is expected to be completed in 2014. The initial relocation will have a production capacity of 300000 tons, and after the relocation, it will have a production capacity of 500000 tons, which will become the second largest wire rope manufacturer in the world.

(5) Investment advice: we predict that the company's EPS from 2010 to 2012 is 0.19,0.21 and 0.17 yuan respectively, corresponding to PE of 61 times, 57 times and 68 times respectively. The current valuation is not attractive. In view of the fact that the company will not have a breakthrough in the past two years, it will not be rated for the time being.