Event: radio and Television Electric announced that the domestic natural gas pipeline 20 MW electric drive compressor frequency converter developed by the company was successfully put into operation at Gaoling partial pressure Gas Transmission Station on the second line of West-to-East Gas Transmission Line, and the relevant tests were completed successfully. the relevant indicators and production quality meet the application requirements.

Comments:

1. The domestic super-power frequency converter runs successfully, fully demonstrating the electrical technical strength of radio and television.

2. The third line of the West-to-East Gas Transmission Project has started, and the demand for high voltage frequency conversion is huge.

3. It is suggested that we should pay attention to the trading opportunities brought by the successful application of high voltage frequency conversion in Rongxin Co., Ltd.

4. Profit forecast and investment advice

We maintain our previous view: considering the promotion of domestic pipeline construction, we expect the radio, television, electrical and power electronics business to maintain a growth rate of more than 40% in recent years. However, the performance of Radio and Television Electric should return to the growth track, its complete equipment business should be gradually stable, and the components business should gradually achieve market promotion success.

We estimate that the EPS of the company from 2012 to 2014 is 0.17,0.22 and 0.27 yuan respectively. At current share prices, PE is 22 times, 17 times and 14 times, respectively. We maintain a "prudent recommendation" investment rating.