In 2011, the company achieved operating income of 8.749 billion yuan, an increase of 1.84% over the previous year, net profit attributable to shareholders of the parent company of 423 million yuan, a decrease of 46.44%, and earnings of 0.06 yuan per share, in line with expectations. Revenue situation of major products in 2011: Metallurgical equipment sales revenue was 2,344 billion yuan, down 6.01% year on year. Revenue from nuclear power equipment was 1.2 billion yuan, a decrease of 14.99%. The sales revenue of heavy pressure vessels was 2,596 billion yuan, an increase of 34.25% over the same period last year. The sales revenue of large-scale castings and forgings was 1,448 billion yuan, a year-on-year decrease of 25.43%. Rise and fall are common. In 2011, the company's petrochemical equipment order volume reached a record high, with orders totaling 5.19 billion yuan, 2.4 times that of the same period last year. Despite being affected by the Fukushima nuclear accident in Japan, great results have been achieved in ordering nuclear power products. Contracts totaling 950 million yuan have been signed, continuing to maintain the leading position in the domestic industry; metallurgical spare parts and power plant castings and forgings have signed roller and spare parts contracts with Shougang and many other companies. In 2011, new orders totaled 14.25 billion yuan, which is conducive to continuing to maintain the company's steady development. We expect metallurgical equipment to gradually stabilize in 2012, and large castings and forgings may still be under adjustment pressure. Heavy pressure vessels account for the highest share of revenue. The increase in sales has made up for the decline in other products. According to new orders, it is still expected to maintain growth, becoming a highlight among the four major product categories. With the successive introduction of national nuclear safety plans and nuclear power development plans, it is believed that demand for nuclear energy products will increase, and policy trends after the 18th National Congress are worth paying attention to. The company's overall performance is expected to improve in 2012. We forecast that in 2012-2014, the company's main business revenue will be 85.9, 95.5, and 10.91 billion yuan, net profit of 536, 7.82 and 919 million yuan, respectively, and earnings per share of 0.08 yuan. The closing price on April 27 was 3.42 yuan, and the predicted net asset per share is 2.64 yuan. According to the 2012 1.5 times PB valuation and a reasonable stock price of 3.96 yuan, we maintain an investment rating of “increased holdings - A”. Risk warning: Changes in industry and company fundamentals that exceed expectations have prevented profit forecasting targets from being achieved.