Traditional businesses are picking up. About 90% of the company's annual revenue comes from fabrics and trade. The textile business mainly consists of four categories of products: automotive interiors, elastic fabrics, sportswear fabrics, and home textile fabrics. Performance declined significantly in the third and fourth quarters of 2008 due to the impact of the financial crisis. Through this survey, we learned that with the recovery of the automobile sales market, the company's automotive interior orders increased significantly after the New Year. At the same time, due to the recovery in the price of upstream raw materials, the price of the company's elastic fabric is expected to rise by an average of about 3,000 yuan per ton. The automotive interior testing center currently under construction will help enhance the competitiveness of the company's automotive interior business. We estimate that the performance growth rate of the company's traditional textile business will pick up in the second half of the year. It is intended to enter the medical equipment high-tech industry and diversify the risks of traditional industries. The company plans to acquire 100% of Shenzhen Weald Medical Electronics shares through a non-public offering (issue price of 8.27 yuan, no more than 44 million shares). The company's main products, handheld and portable B-supermarkets, have a high market share. The company is valued at 360 million yuan. In the context of the new medical reform, rural community hospitals will be one of the potential markets for the growth of the company's B-super products. We believe that the diversified management of the company will help reduce the risk of performance fluctuations in the traditional textile industry of the company's single operation, and bring new profit growth points to the company. The company and the subscriber promise that after the transaction is completed, the net profit growth rate of the company's original business will not be less than 20% per year from 2009 to 2011, and the net profit growth rate of Wilder will not be less than 15%. Profit expectations and valuations. It is conservatively estimated that Wilder's net profit for 09/10 was 23.8 million yuan/27.37 million yuan (calculated based on the promised growth rate of at least 15%), and the net profit of the textile business belonging to the parent company in 09/10 was 867.5/11.104 million yuan. Based on 1.51 share capital, the textile and medical equipment business had diluted earnings of 0.215/0.255 yuan per share in 09/10. The current stock price is 12.1 yuan (corresponding theoretical price of 10.96 yuan), which corresponds to a price-earnings ratio of 51 times/43 times in 09/10, giving it a “neutral” rating.