Industrial real estate sales are good, which may be affected by policy regulation in the later stage. At present, the proportion of industrial real estate sales is close to 40%, with an average price of 4,500-5000 yuan per square meter, and the real estate sales price has not yet fallen. The company expects the identifiable net profit in the China report to be 2500-30 million yuan, and can fulfill the net profit commitment of 74.25 million yuan for the whole year. We expect that with the later decline in real estate prices, the capital crunch of industrial enterprises, and the state's interest rate hikes, industrial real estate sales prices may be preferential or reduced, which will reduce the company's sales revenue and gross profit margin.

The optical fiber and cable project is progressing smoothly. Optical fiber business is the company's main performance growth point. The third phase of the optical fiber steel structure project of the Optical Communication Company is nearing completion, and the core equipment has been customized. The expansion of 5.5 million core kilometers will be carried out in two phases, with three towers and six lines completed in the first half of next year and another three towers and six lines by the end of next year. at that time, the total production capacity of optical fiber will reach 10.2 million core kilometers. Optical fiber products into Changfei's sales system, the contract period is 2009-2011 three years, so in this year and next year, the downstream sales channels of products will not become a constraint on performance. In addition, the Ministry of Industry and Information Technology predicts that the investment in the construction of optical fiber broadband network will reach 150 billion yuan within three years, and the promotion of the strategy of "optical advance and copper retreat" is expected to maintain the long-term prosperity of the optical communication industry.

The situation of leaf sales is open. The company adjusts the blade production plan to 750kw60 sets and 1.5MW150 sets. The 750kw blades of Xinfeng Company have hung up in Yichun Wind Farm, Heilongjiang Province, and the 20 sets of sales contracts signed earlier this year can be completed. The 200MW project of Xinhui Wind Power in Ganhekou No. 6 Wind Farm in Guazhou, Gansu Province is expected to be completed by the end of the year. The wind farm construction uses Xinjiang Goldwind Science & Technology's complete machine, which is expected to promote the sales of the company's 1.5MW blades and achieve 134sets of production. The company's blade can improve the power generation performance by 10%. In the early stage, due to the operation and management problems of Xinfeng company failed to be promoted in the market as scheduled, with the strengthening of the cooperation between the company and Xinjiang Goldwind Science & Technology, we expect the leaf production capacity to be released smoothly.

The company decided to intervene in the production of prefabricated bars. The company has put the optical fiber preform project on the agenda and is currently in talks with Changfei. The prefabricated rods used in the company's optical fiber production need to be transported from Wuhan Changfei to Tianjin. If the company can set up a local joint venture with Changfei to set up a prefabricated rod production line, the gross profit margin of the optical fiber business is expected to increase by 20-30%, and the profitability of the business will be improved qualitatively.

Tiandi Weiye Digital Technology Co., Ltd. will launch a spin-off listing plan. Tiandi Weiye, which is 40% owned by the company, will choose the opportunity to start the spin-off listing plan of gem. Tiandi Weiye is an industry leader in the field of security software and hardware, mainly to undertake government projects, and has repeatedly won the title of "Top Ten Brands of Security". We expect the preparation of its declaration materials to start in the second half of the year.

The real estate policy suppresses the overall valuation of the company, and we will not adjust the company's rating for the time being. Due to the tightening of real estate policy, the main business of the company's industrial real estate has also been affected, and the value of the stock is facing revaluation. The company's financing plan is also subject to review by both the CSRC and the Ministry of Land and Resources, and it is expected that the additional issuance plan will be approved after October. Taking into account the possibility of a decline in the company's main business, we downgrade the company's performance forecast to 0.42, 0.56, 0.75 yuan, and a reasonable valuation to 10 yuan, but considering that the company's future focus is mainly on the prefabricated bar project and Tiandi Weiye's spin-off listing concept, we still believe that the company can enjoy a certain valuation premium, it is recommended to pay active attention to the target price of 15 yuan, do not adjust the company rating.