The main products of the power system customer base and high-end product positioning company are power cables below the 35kV voltage level, wires and cables for electrical equipment, and bare wires. From January to June 2010, the above three products accounted for 80.37%, 8.04%, and 11.59% of revenue, respectively. Ninety percent of the company's operating revenue comes from power systems and key projects, and the proportion of general engineering users is low. In order to improve the competitiveness and profit margin of the company's products, the company has established a development strategy focusing on marketing within the power system industry, focusing on promoting cable products related to high voltage and ultra-high voltage voltage levels. In recent years, research and industrialization work on ultra-high voltage environmentally friendly flame-retardant cross-linked cables with a voltage rating of 500 kV has been actively carried out with the Shanghai Cable Engineering Design Institute and other organizations. Achieving rapid profit growth under improving marketing network layout and value marketing strategies The company, on the one hand, is guided by “deployment in key regions, distribution in target regions”, and has expanded its marketing outlets nationwide to more than 80, while products are exported overseas; on the other hand, it adheres to the value marketing strategy and uses effective methods such as team marketing, equity incentives, and backbone training to improve the company's sales capacity. In recent years, during a period of rapid development, the company's net profit in 2007, 2008 and 2009 reached 21.72 million yuan, 45.47 million yuan and 5031 million yuan respectively. Industry demand is growing steadily, but competition is fierce. Benefiting from a steady increase in investment in electricity, railways, rail transit, energy, construction, ships, automobiles, etc., the wire and cable industry remains prosperous. However, at present, there are many domestic and foreign cable industry enterprises, and competition is fierce, making the low-end wire and cable industry not very profitable. The main competitors include Far East Holdings, TBEA Luneng Taishan Cable, Jiangsu Shangshang Cable, Jiangsu Baosheng Technology Innovation, Qingdao Han Cable, Guangdong Nanyang Cable, Zhejiang Wanma Cable, Prysman (Prysman), Nexans (Nexans), Sumitomo (Sumitomo), and Furukawa (Furukawa). Whether the company can use the marketing network and the accumulation of the power industry over the years to achieve results in grid high voltage and UHV tenders will have a great impact on the company's development prospects. The capital raised is used for the production of high-end products such as ultra-high voltage 500kV cables and overhead lines. It is proposed to issue 40 million shares with a share capital of 160 million shares after issuance. The funds raised are mainly used to invest in the production and construction of high-end products such as 500kV ultra-high voltage environmentally friendly flame-retardant crosslinked cables and 500kV resource-saving aluminum alloy overhead wires. After the project is delivered, it will add 600 km of environmentally friendly flame-retardant high-voltage and ultra-high voltage cross-linked cables of 110 kV, 220 kV, 500 kV, and a production capacity of 10,000 tons of various resource-saving aluminum alloy overhead wires, adding an average annual sales revenue of 847.68 million yuan and an average annual net profit of 102.25 million yuan. Profit forecasts and investment advice. We expect the company's performance in the next three years to be 0.45 yuan, 0.55 yuan, and 0.72 yuan, respectively. Referring to the valuation levels of Baosheng Co., Ltd., Sun Cable, Nanyang Co., Ltd., and recent secondary markets of enterprises in the same industry, the company was given 25-30 times PE in 2010, with a reasonable valuation of 11.25-13.50 yuan. The recommended inquiry range is 11-12 yuan.