Event: The company released its 2014 Q3 report today. The revenue growth rate was in line with expectations, and the net profit growth rate was slightly lower than expected. The company achieved operating income of 752 million yuan in the first three quarters of 2014, up 17.51% year on year; realized net profit attributable to shareholders of listed companies of 121 million yuan, up 5.07% year on year, corresponding to EPS of 0.26 yuan, slightly lower than our expectations, mainly because sales expenses and financial expenses exceeded our previous expectations. Demand for vulcanizers and tire molds continues to grow, and the company's performance is guaranteed. The downstream tire industry continues to be prosperous. In particular, as people's requirements for driving safety and comfort increase, the requirements for tires are also constantly increasing. Compared with traditional mechanical vulcanizers, the company's hydraulic vulcanizers have the advantages of higher efficiency and better tire production quality, and are constantly replacing mechanical vulcanizers. The company's vulcanizer revenue share has continued to rise from less than 5% in 2008 to 50% now, and it is expected that this trend will continue in the future. The company's order acceptance situation is good. In Q3, the company's advance accounts have reached 126 million yuan, an increase of 32% over the previous year. Currently, the company's production schedule has reached next year, and continued growth in performance is guaranteed. Break through the key component of robots - speed reducers, and expand robot integration business starting with the tire industry. Based on long-term technology accumulation in mechanical design and processing, the company has now independently developed robot speed reducers and is currently undergoing application tests; at the same time, the company is developing system integration business through self-produced robot bodies, and is expected to be the first to achieve a breakthrough in the tire industry. We maintain profit forecasts and maintain a “buy” investment rating. We maintain the company's 2014-2016 EPS forecast of 0.40/0.57/0.73 yuan. The current stock price corresponding to PE is 31/22/17 times; if additional issuance is considered, the EPS after complete dilution is 0.30/0.43/0.56 yuan, and the current stock price corresponding to PE is 41/29/22 times, maintaining the “buy” investment rating.