The performance exceeded expectations. The company achieved revenue of 424 million yuan in the first three quarters, a year-on-year increase of 34%, net profit of 92.43 million yuan, a year-on-year increase of 155%, and earnings of 0.77 yuan per share. Among them, the third quarter achieved revenue of 180 million yuan, a year-on-year increase of 52%, net profit of 52 million yuan, a year-on-year increase of 210%, and earnings per share of 0.43 yuan. The performance exceeded our expectations. The continuous delivery of high-speed rail orders is the main reason for the increase in performance. CNC gantry machine tools, including high-speed rail CRTS type II track plate gantry milling, achieved sales of 343 million yuan in the first three quarters, an increase of 87% over the previous year, and revenue share increased from 54% to 80%. Currently, there are sufficient orders for CNC gantry machines, and production is at full capacity. The company's product structure has been upgraded from ordinary machine tools to CNC gantry machine tools. Product gross margin increased significantly. The company's consolidated gross margin for the first three quarters was 36.15%, an increase of 11.24 percentage points over the previous year. Mainly due to the sharp increase in sales of CNC machine tools and the increase in the share of CNC gantry machine tools, the average operating margin of the company's CNC machine tool products also increased by 8.51 percentage points over the same period last year to 39.97%. The average gross profit margin of ordinary machine tool products is 13.76%, which is basically the same as in the same period. It has a monopoly on the CRTS II type special CNC grinding machine for track boards, and subsequent high-speed rail orders are worth looking forward to. The company is the only domestic manufacturer with the production capacity of high-speed rail CRTS type II special CNC grinders. Currently, it has announced that orders for 24 units totaling 350 million yuan have been made. They have been delivered centrally in the first three quarters. The sales price excluding tax is about 12.54 million yuan, and the gross margin is about 35%. It is conservatively estimated that around 50 Borg plate grinders will be needed for high-speed rail construction in the next 2 years. The monopoly technology will enable the company to fully share high-speed rail investment opportunities. We expect the company to achieve sales volume of 20 Borg grinders in 2009 and 2010, accounting for about 40% of gross profit. Joining hands with Germany's Heath Zhuangming, they entered heavy machine tools and wind power production lines. The company plans to publicly issue no more than 35 million shares, raise 350 million yuan, and invest in the “CNC large-scale machine tool technology transformation project”, cooperate with Hiss Zhuangming to manufacture a CNC gantry mobile boring and milling center representing the international advanced level, a φ320 CNC floor boring and milling machine, a 16-meter CNC six-axis gear hobbing machine, and a joint venture with Hiss Zhuangming to build the first domestic and second 1.5-5MW wind power flexible processing production lines in the world, mainly producing large-scale wind power wheels, gear boxes, etc. The joint venture cooperation project is conducive to the company's R&D and manufacturing technology reaching a world-class level, and subsequent profitability and high growth are worthy of long-term optimism. Maintain the “Overweight” rating. We raised our profit forecast for 2009-2010 from 0.83 yuan and 1.10 yuan to 0.95 yuan and 1.20 yuan, and achieve rapid growth of more than 50% in the next two years. As a high-end CNC machine tool manufacturer benefiting from the construction of high-speed rail, wind power, and nuclear power, the company has continuously optimized and upgraded its product structure. The monopoly advantage of Borg plate grinders will enable the company to fully share the investment opportunities of high-speed rail. We are optimistic about the company's medium- to long-term growth and maintain the “increase in holdings” rating.