Research has concluded that industrial upgrading is mainly reflected in the horizontal and vertical aspects of product upgrades and process upgrades, and there is no room for improvement. In terms of product upgrades, vigorously developing car tire equipment, expanding large-scale aircraft tooling jigs, and overraising capital may invest in other special equipment. In terms of functional upgrades, capital is raised to purchase a lot of equipment, and some outsourced processing and production can be completed by oneself, extending the industrial chain. In terms of value chain upgrading, there is currently no concrete performance. As can be seen, the company's industrial upgrading is mainly reflected in the vertical (car tire equipment) and horizontal (tooling jigs and other special equipment) of product upgrades. The midstream tire equipment manufacturer with the most complete range of domestic products. Judging from the tire process process, tire production needs to go through processes such as mixing, extrusion, cooling, cutting, molding, vulcanization, shaping, and testing. In terms of process, tire equipment can be divided into production equipment and testing equipment; it can also be divided into general equipment and special equipment. Mixing and vulcanization are general equipment, and the intermediate process produces special equipment. The company's main business focuses on manufacturing equipment for intermediate processes from extrusion to molding. The gross margin of truck tire equipment still declined slightly last year, and truck tire equipment increased sharply by 71.8%, mainly due to the rapid increase in demand for heavy trucks driven by an investment of 4 trillion yuan; it is expected that there will still be steady and rapid growth in the future. The gross margin fell 4.8 percentage points last year, mainly due to a drop in product prices that are fiercely competitive; we expect that product prices will continue to be adjusted slightly this year, and gross margin will continue to decline slightly. Giant engineering tire equipment is leading the world in engineering tire equipment, which fell by 61.5% last year. Also affected by the economic crisis, many downstream customers suspended production line construction for tire projects. In terms of capacity, the demand for engineering tire equipment is smaller than that for heavy tire equipment; we expect that in the future, the market will mainly be exports. Due to its monopoly position in giant engineering tire equipment, the gross margin is several percentage points higher than that of truck tires. Car tire equipment looks at market development. Judging from the market capacity, car tire equipment is much larger than that of heavy duty tires and engineering tire equipment. The company has no problems with the product reserves of car tire equipment, and is currently vigorously developing the market; sales have already been achieved last year, and it is expected that there will be significant growth in the next two years. The aircraft tooling fixture market is steadily expanding, and a few more sets of A320 tooling jigs signed with Tianjin Airbus will be delivered this year; the first section of the A350 agreement signed in October last year is expected to be implemented this year. Recently, the company also negotiated orders for tooling jigs with other companies. This business is expected to grow steadily in the future. Profit forecasting and valuation, the company has overraised 270 million yuan. In addition to the recent permanent replenishment of liquidity of 80 million yuan, there is still 190 million yuan; we expect that there will not be much movement in traditional rubber machines and upstream and downstream, which may involve special equipment for other industries. We expect to achieve earnings of 1, 1.23, and 1.53 yuan per share from 2010 to 2012, with a target price of 35 yuan, giving it an “increase in holdings” rating.