Events: The company achieved operating income of 260 million yuan in the first three quarters of 2012, up 6.77% year on year; net profit attributable to owners of the parent company was 474612 million yuan, up 0.73% year on year; basic earnings per share of 0.0627 yuan. It is estimated that the net profit attributable to the parent company in 2012 will vary between 706 and 84.7 million yuan, with a change of 0% to 20%. Key investment points: Overall performance improved month-on-month, sales expenses increased single-quarter revenue by 106 million yuan, up 5.3% month-on-month; operating profit was 24.9 million yuan, up 51.27% month-on-month. Sales expenses in the first three quarters increased by 42.84% year on year, mainly due to steady growth in transmission and distribution products due to market promotion of new polyimide materials and the increase in development costs, and the gross margin slightly increased in terms of traditional transmission and distribution products. At the same time, based on the advantages of polymer insulation material technology and personalized customization, the share of medium voltage cable branch box sales with high gross margin in the product structure increased, and overall gross margin did not decline due to competition caused by centralized bidding for power systems, but increased 4.84% year on year. Various projects in the polyimide industry chain are progressing normally. Heat-resistant fibers are in the market development period. There are already small sales volumes, awaiting market volume; construction of equipment for the Jiangxi project is about to begin; a highly insulating and flame retardant polyimide jacket with superior performance to Kevlar fiber, and is environmentally friendly and comfortable. Currently, the cost is still within an acceptable market range. Maintain the company's holdings increase rating. We predict that the company's 2012-2013 EPS will be 0.11 and 0.24 yuan, and the corresponding PE will be 76.7 times and 35.2 times, maintaining the increase in holdings rating.