Main points of investment:

1. Citic heavy Industry, formerly known as Luoyang Mine Machinery Factory, is one of the "seven major heavy machinery factories" in China, which was merged into CITIC Group in 1993. At present, the company has become the largest mining machinery manufacturing enterprise and cement equipment manufacturing enterprise in China, mainly engaged in the development, development and sales of large equipment, large sets of technical equipment and large castings and forgings in building materials, mining, metallurgy, electric power, energy saving and environmental protection and other industries, and provide related supporting services and overall solutions.

2. As one of the largest heavy machinery manufacturing enterprises in China, the company has a very high market position. The company has designed and manufactured more than 6000 mine hoists of various types, and the domestic market share of large hoists is more than 85%. The domestic market share of large grinding equipment is more than 80%, and the domestic market share of cement mainframe equipment with Nissan of more than 5000 tons is more than 70%. The company also has a strong technological advantage, the company's technology center is one of the first batch of 40 national enterprise technology centers, ranked third in the comprehensive evaluation of 729 enterprise technology centers in 2011. The company has 18500 tons of free forging hydraulic press with the largest specification and the most advanced technology in the world. The "new heavy machine" project casts the company's high-end equipment advantage. In addition, the company also has the advantage of customer resources and has partnered with the five largest cement manufacturers in the world. At present, the company has full orders on hand. At the end of April 2012, the order on hand has exceeded 26 billion yuan (including tax), an increase of 20% over the same period last year. Among them, the newly signed order is 8.6 billion yuan, and the future performance has a strong certainty. The overall average compound growth rate of China's heavy machinery industry from 2003 to 2009 is 32%. It is expected that during the 12th five-year Plan period, the heavy machinery industry will still be able to maintain a growth rate of about 20%. The above advantages of the company ensure that the company will continue to benefit from the process of industrial upgrading in our country.

Profit forecast and investment strategy:

It is estimated that the company's earnings per share from 2012 to 2013 are 0.33 yuan and 0.39 yuan respectively. It is expected that the company's stock price will fluctuate 4.5 yuan between 5.5 yuan and 5.5 yuan on the first day of listing.