Company business: The company is a manufacturer specializing in R&D, production, sales and service of power wires and cables. Its main products are 35 kV and below wires and cables, including three major categories of power cables, wires and cables for electrical equipment, and bare wires, involving more than 500 models and 10,000 specifications. Industry analysis: Demand for medium- and low-voltage cables below 35kV has entered a stable period. A new round of agricultural grid upgrading and urban distribution grid construction will boost power cables with voltage levels of 35 kV and below; the application prospects for high-voltage cables and special cables are broad, and they are an important growth point for the industry in the future. The company's competitive advantage: The company implements a “value marketing” strategy to win high-end customers in power systems and key projects by promoting product value, service value, brand value, image value and differentiated services. In competition, it can obtain orders at relatively high prices and maintain the gross margin level of products; strictly controls product quality, and attaches great importance to product brand building, and has won many famous national and provincial brand titles. Funding analysis for the fund-raising project: The company publicly issued 40 million new shares to the public, and plans to raise about 285 million yuan. There are two main types of capital raised: (1) the 110kV-500kV environmentally friendly flame retardant ultra-high voltage cross-linked cable project. After delivery, the project can form a production capacity of 400 km of 110kV cables, 140 km of 220kV cables, and 60 km of 500kV cables; (2) the 500kV resource-saving aluminum alloy overhead line project, which will form a total production capacity of 10,000 tons after delivery. The construction period for the entire project was 2 years, and the production period was 1 year. Production reached 70% of the design capacity in the 1st year of operation, and the design production capacity reached in the 2nd year. Risk warning: We believe that the company's main risks come from operating risks caused by large fluctuations in raw material prices and technical and market risks in fund-raising projects. Profit forecast and company valuation: We forecast the company's EPS for 2010-2012 to be 0.51 yuan and 0.60 yuan 0.84 yuan, respectively. The proposal was to give the company a price-earnings ratio of 22-27 times the 2010 EPS, and a pricing range of 11.22 yuan to 13.77 yuan was obtained on the first day of listing for the listed company. The inquiry proposal was to inquire according to the price-earnings ratio of 20-23 times the 2010 EPS, with an inquiry range of 10.20 yuan to 11.73 yuan.