Report summary: In 2011, the company's nuclear power production reached a record high. The company undertook the task of producing a total of 5 nuclear reactor pressure vessels in Fuqing No. 1, No. 2, Yangjiang No. 1, No. 2, and Fangjiashan No. 1 in one year. This is unprecedented in the history of Chinese and even domestic nuclear power equipment manufacturing. On December 30, 2011, the hydraulic test of the Fuqing No. 2 nuclear reactor pressure vessel was successful, thus achieving the goal of producing 5 nuclear reactor pressure vessels per year in one fell swoop, setting the highest record for domestic nuclear reactor pressure vessel manufacturing, marking a major breakthrough in China's autonomous, specialized, and batch manufacturing of nuclear power equipment. At present, the company has formed a significant advantage in the development of nuclear energy equipment, and has become a domestic enterprise that has mastered the manufacturing technology of “second generation plus” and “third generation” nuclear power large-scale castings and forgings. It has achieved mass production of all forgings for “second generation plus” and “third generation” nuclear island main equipment, and has taken the lead in the production of more than 90% of the country's nuclear power forgings and more than 80% of nuclear reactor pressure vessels through third party assessments. It is the only domestic enterprise with manufacturing capabilities for large-scale nuclear power castings and forgings and complete nuclear island equipment. The company currently has contracts to manufacture 28 million-kilowatt nuclear power pressure vessels. A major hydrogenation company has now intensively carried out component surfacing and group welding for Fuqing No. 3, No. 4, Yangjiang No. 3, No. 4, and Ningde No. 3, 4, and Ningde No. 3, 4, C3, and C4RPV, laying a solid foundation for production in 2012 and 2013. First, we are making every effort to develop more advanced and safer next-generation nuclear energy equipment, and strive to fully localize next-generation nuclear power equipment. At present, the forensics work for third-generation steam generators and reactor components is progressing steadily, and it is expected that a corresponding complete production capacity will be initially formed in 2012. In addition, research and development work on castings and complete equipment for reactor type one-circuit equipment such as CAP1400, EPR, fast neutron reactors, and high-temperature air-cooled reactors is also running according to plan. We believe the company will write a new chapter in the field of nuclear power equipment business. We forecast the company's main business revenue for 2011-2013 to be 87.9, 96.6 and 11.16 billion yuan, net profit of 3.46, 5.79 and 908 million yuan respectively, and earnings per share of 0.05, 0.09, and 0.14 yuan respectively, down 67%, 55%, and 39% respectively from before. The company's stock price has been fully adjusted in the previous period, and the net market ratio in 2012 was only 0.8 times. Approval of new nuclear power projects is expected to resume within the first half of this year, which will trigger the stock price. According to the 2012 50x PE valuation, the reasonable stock price was 4.5 yuan, and the closing price on January 20 was 3.44 yuan, and the investment rating was downgraded from “buy-A” to “increased holdings -A.” Risk warning: Changes in industry and company fundamentals that exceed expectations have prevented profit forecasting targets from being achieved.