From January to September 2009, the company achieved operating income of 962 million yuan, a year-on-year decrease of 37.6%; operating profit of 57.36 million yuan, a year-on-year increase of 21.3%; net profit attributable to owners of the parent company of 45.83 million yuan, an increase of 15.9% over the previous year; and achieved basic EPS of 0.32 yuan. Among them, in July-September 2009, operating income was 428 million yuan, up 18.9% year on year; operating profit was 15.23 million yuan, up 221.3% year on year; net profit attributable to parent company owners was 12.13 million yuan, up 125.1% year on year; and basic EPS was 0.09 yuan in a single quarter. Financial expenses have been drastically reduced. The company went public at the end of September 2009. Its main business is the production and sale of precision copper tubes, copper tube deep processing products, and copper processing equipment. The company's business model is to purchase raw materials such as electrolytic copper to make copper tube products to earn processing fees, and the products adopt the “raw material price+processing fee” pricing model. The average domestic copper price during the reporting period fell by about 39% year on year, which is comparable to the decline in operating income, indicating that the company's production and sales volume is stable. The main reasons for net profit not falling but rising include: 1) the decline in copper prices caused gross margin to increase by 2.6 percentage points year on year. The company achieved gross profit of 97.51 million yuan during the reporting period, a year-on-year decline of 15.8%, a decline lower than operating income of 21.8 percentage points; 2) The sharp decline in corporate loan interest rates and bill discount interest rates in 2009 and the decline in copper prices reduced the amount of cash on company notes. The company's financial expenses fell 79.3% year on year to 7.13 million yuan during the reporting period. Rapid expansion of production capacity ensures a steady increase in profitability. Compared with traditional processing enterprises, the company has two advantages: 1) downstream customers are mainly strategic partners such as Gree and Midea, and product sales are guaranteed; 2) they only earn processing fees, and the risk of fluctuations in raw material prices is mainly borne by customers. These two advantages ensure that the company's profit level will increase steadily with the expansion of production capacity: 1) The company currently has 30,000 tons/year of precision copper tubes and 3,000 tons/year of copper tube deep processing products. In 2011, the company's three fund-raising projects fully reached post-production, precision copper tube production capacity expanded 1 times, and the production capacity of copper tube deep processing products expanded 1.7 times. The increase in production and sales will make the company earn more processing fees; 2) After the company's fund-raising projects are put into production, the share of product business with higher gross margins has increased, and the company's overall deep processing costs have increased. Rise. Profit forecast. The company is expected to achieve net profit of 65.47 million yuan attributable to owners of the parent company in 2009, an increase of 19.9% over the previous year, giving the company a profit forecast of 0.46 yuan and 0.64 yuan for EPS in 2009 and 2010, respectively. According to the closing price of 21.26 yuan on October 23, the corresponding dynamic P/E is 46 times and 33 times, respectively, considering that the company is in a period of rapid expansion of production capacity, the company was given an investment rating of “increased holdings” for the first time.