From January to September 2009, the company achieved operating income of 399 million yuan, a year-on-year increase of 0.55%, operating profit of 80.29 million yuan, a year-on-year increase of 8.39%, and net profit attributable to the parent company of 73.95 million yuan, an increase of 12.81% over the previous year, and an income of 0.41 yuan per share. Among them, the third quarter achieved operating income of 142 million yuan, a year-on-year decrease of 2.4%, and net profit attributable to the parent company of 26.37 million yuan, a year-on-year decrease of 7.7%, and earnings of 0.15 yuan per share. Performance has maintained steady growth. The company's performance grew steadily during the reporting period, and the profit growth rate was significantly faster than the revenue growth rate, so the company's high-end business strategy has paid off. The overall gross margin of the product increased year on year, and profitability improved. The company's overall product gross margin for the first three quarters was 36.89%, up 1.29 percentage points from the previous year. The main reason for the increase in gross margin is that the price of major raw materials such as steel has stabilized, leading to a decrease in the cost pressure on the company and an increase in the proportion of the company's high-value-added products. There was a decrease in the cost rate for the period. In the first three quarters, the company's three-period expense ratio was 14.52%, down 1.02 percentage points from the previous year. Among them, the decline in financial expenses was the most obvious, with a year-on-year decrease of 37.4%, mainly on loans used to invest in technological reform, and interest was capitalized. Efforts to expand new markets should be stepped up gradually. Due to the relative overcapacity of the steel industry, demand in the traditional metallurgy market has slowed down, which is bound to have an impact on the company's performance. Therefore, the company should further step up its expansion into new markets such as lifting equipment, electricity, wind power, etc., and gradually change the situation where the demand market is relatively uniform. At present, the company has begun to see results in expanding new high-end markets through fund-raising projects. In 2010, the company will enter a period of full release of production capacity, and the revenue share from other markets will reach about 50% at that time. Earnings forecasts and ratings. We expect the company's earnings per share in 2009, 2010, and 2011 to be 0.59 yuan, 0.76 yuan, and 0.99 yuan respectively. Based on the calculation of the closing price of 16.71 yuan on the previous trading day, the company's dynamic price-earnings ratio in 2009 was 28 times. The valuation is at a reasonable level, and we maintain the company's “increased holdings” investment rating.