Raise profit forecasts and target prices and maintain "buy" ratings

Raise the 10-12 EPS to 1.30,1.68,2.16 yuan respectively, the dynamic PE to 34,26,20 times, and the target price for 6-12 months to 30 times to 50 yuan in 2011, maintaining the "buy" rating.

The company's interim results were in line with the forecast, and net profit increased by 31% compared with the same period last year.

In the first half of the year, the main business income reached 323 million yuan, an increase of 33% over the same period last year. Net profit belonging to shareholders after deducting non-recurring profits and losses was 51.64 million yuan, an increase of 35% over the same period last year. Previously, the predicted EPS is 0.43 yuan, the actual 0.43 yuan, and the total share capital EPS is 0.42 yuan, which is in line with expectations. The gross profit margin in the second quarter was the same as that in the first quarter, while the net profit margin on sales rose 5.2 points over the first quarter to 18.6%.

With a pre-growth of 20-50% in the third quarter, the annual results will exceed our previous expectations.

The EPS for the first-third quarter is expected to be 0.86 to 1.08, with a median of 0.97 yuan, raising the 2010 profit forecast to 1.30 yuan. At the same time, it raised its profit forecast for 2011-2012.

The high distribution scheme of 10 for 10 shows management's confidence in future growth.

We will introduce a scheme that every 10 shares will be converted into 10 shares with a cash dividend of 1 yuan (including tax).

The company's core focus is on the progress of its nuclear power business.

The business of East China heavy Industry and the newly established nuclear power equipment company will significantly affect the company's value investment risk: the company's nuclear power business progress is lower than expected.