Pegasus International released its 2011 annual results report today. During the reporting period, the company achieved total revenue of 5.96 billion yuan, an increase of 106.45%; of these, total operating revenue of 1,513 billion yuan in the fourth quarter was 1,513 billion yuan, an increase of 22.16% over the previous year, and an increase of 72.43% over the third quarter. The total operating costs of the company during the reporting period were 5.629 billion yuan, up 108.23% year on year; of these, total operating costs for the fourth quarter were 1,375 billion yuan, up 16.63% year on year and 68.74% month on month. The company achieved net profit attributable to the parent company of 76.5785 million yuan for the whole year, compared to 507.343 million yuan in the same period last year, an increase of 49.96% over the previous year; achieved EPS of 0.25 yuan. Among them, in the fourth quarter, the company achieved net profit attributable to the parent company of 26.397 million yuan, a year-on-year increase of 103.08%, an increase of 290.55% over the third quarter, and an EPS of 0.09 yuan in a single quarter. We believe that 1) 60% of the annual revenue achievement target was affected by the overall decline in coal sales in the power industry; 2) the growth rate of the coal business slowed in the second half of the year, and the integrated logistics and logistics park business contracted, and the prospects for fund-raising projects are still uncertain; 3) gross margin increased significantly in the second half of the year. The gross margin level for the whole year was reduced by 14% compared to last year, and the net interest rate level was within a normal range; 4) Changes in the fair value of foreign exchange financial instruments will increase by 20.4 million; 5) Fair changes in the value of foreign exchange financial instruments have been confirmed and confirmed Investment losses erode profits, and business stability risks are prominent; 6) The coal business is still in the early stages of expansion. Prices are falling to carry over and increase gross profit, and the “Cautious Recommendation” rating The company's operating income grew rapidly in 2011, mainly driven by the coal trade business. We believe that the company is still in the early stages of the coal trading business. Although from a fundamental point of view, both upstream and downstream coal trading businesses are strong customers, and the possibility of long-term development and formation of large-scale platforms still needs to be considered, in the short term, the business demand is strong, and the ability to achieve results can still be expected. EPS is expected to be 0.36 yuan, 0.49 yuan, and 0.67 yuan respectively from 2012 to 2014, and the rating was raised to “Cautious Recommendation”.