Demand for packaging equipment continues to grow due to steady growth in beverage consumption. The company is mainly engaged in the development and production of bottle blowing machines, filling machines, and secondary packaging equipment, and is the largest beverage packaging equipment production base in Asia. The company cooperated with Coca Cola to successfully launch environmentally friendly lightweight bottles, which were successfully used in ice-dew bottled aquatic products. With the continuous expansion of lightweight bottle applications, the drinking water market is growing steadily, and demand for packaging equipment is expected to continue to grow. Currently, 70% of the domestic bottle blowing machine market share is occupied by foreign manufacturers such as German Krones and French Sidel, so there is huge room for market replacement. The company has cooperated with well-known beverage companies such as Wahaha and Unification, but the product share of the top ten beverage companies is still small, and the promotion from a single product equipment to a series of products and equipment is expected to bring further sales growth. The expansion of the non-beverage sector brings new development space. In the filling field, in addition to providing equipment for beverage companies including pure water, juice, etc., the company continues to develop the field of high-viscosity non-beverage liquid filling. Downstream customers include P&G, Blue Moon, Haitian Soy Sauce, Arowana, etc., making the company less affected by fluctuations in the single-trip industry. The company's products in secondary packaging equipment include film packaging machines, full carton wrapping machines, carton packers, and palletizers. As demand for automation and efficiency in product packaging and distribution processes increases, the beverage, beer, daily chemical, and condiment industries are in strong market demand. The company has acquired 18,226 square meters of new land in Guangzhou's Yunpu Industrial Zone to expand production capacity. It is expected to be put into production next year. By outsourcing parts such as molds, the company can respond flexibly to changes in market demand and realize the company's asset-light production. Transition from equipment vendor to service. The company's PET bottle supply chain system project uses an innovative business model to provide customers with a PET bottle supply chain system; currently, contract processing for three production lines has been signed in Shenzhen, Hefei, and Xinjiang, which is expected to generate benefits this year. The company exports 20% of its products. The company invested 1 million US dollars to establish a wholly-owned subsidiary in the US to strengthen market development efforts in developed countries such as South and North America. It is expected that the company's export ratio will increase further. Earnings forecasts and ratings. We expect the 2012-2014 EPS to be 0.32 yuan, 0.43 yuan, and 0.51 yuan respectively, corresponding to the closing price of June 13, 23 times, 17 times, and 14 times, respectively; giving it a “Cautious Recommendation - A” rating. Risk warning: The growth rate of investment in filling lines is lower than expected.