A leading enterprise in the domestic enameled wire industry. The company is the largest and technologically advanced manufacturer of fine enameled wire among local Chinese enterprises. It mainly produces fine enameled wire for micro and precision electronic components supporting communication equipment, computers, automotive electronics, office and personal electronic products, etc. The leading products are high-end fine enameled wire below φ0.100mm. China's enameled wire market space is huge. China's demand for fine special enameled wire is in a period of rapid development. Since 2003, the supply and demand of enameled wire in China has surpassed that of Japan and the United States, making it the world's largest producer. Improve the industrial chain and improve the company's profitability. The company is preparing to enter the enameled online copper rod and coil market to improve its self-sufficiency in raw materials, thereby enhancing the company's profitability. Accelerate the pace of market development and increase the company's sales revenue. Currently, the company's production capacity is about 12,000 tons, and the capacity utilization rate is close to 90%. Production capacity will be further expanded to 12,925 tons by the end of this year. The expansion of production capacity requires the company to expand sales, and the company has stepped up its efforts to develop domestic and foreign markets. Acquired Shanghai Yanghang Copper to achieve a strong alliance. The company's customers are in the consumer electronics industry, while Shanghai Yangxing Copper's customers are in the power equipment industry. After the company acquires Shanghai Yanghang Copper, the company's market scope can be expanded, and the company's overall market competitiveness will be significantly improved. Profit forecast and investment rating: Assuming that the company completed the acquisition of Shanghai Yanghang Copper in 2011, we raised our profit forecast. We expect the company's EPS to be 0.13 yuan, 0.52 yuan, and 0.63 yuan respectively. Of these, 2011 and 2012 were diluted EPS after considering issuing 77.98 million shares. Dynamic PE was 116.09, 28.40, and 23.80, respectively. Considering that the company's profitability will make a qualitative leap forward after asset restructuring, we maintain our “gain” rating for the company.