Event: With its scale and profitability, the company became one of the leaders in the cable industry. As of 2010, the revenue scale and net profit ranked third and first among listed cable companies respectively; 110kV cable accessories ranked fourth, aluminum alloy wires ranked second, and ordinary wires ranked 11th out of 74 companies participating in the bidding. As a large-scale enterprise, future development is likely to expand in many regions and fields. Power grid investment is leaning towards lower voltage distribution networks, competition is more intense, and the share of geographical advantages is increasing. As a listed leader, using capital market platforms to achieve epitaxial expansion, increasing the penetration of downstream market segments and geographical distribution of production capacity will become the focus of development. The growth rate of power grid investment is slowing down, affecting revenue growth. Since 2009, power grid investment has declined, and at the same time, the growth rate of core 220kV line construction has declined markedly. We believe that this reflects the completion of the construction of backbone networks in the province in power grid development, and on the other hand, it has guided power grid investment towards excessive polarization. Profit forecast and investment advice: Considering the current valuation level and industry development status, maintain the company's “prudent increase in holdings” rating. It is estimated that the EPS for the 11th and 12th years will be 0.43 and 0.51 yuan, and the target price is 17 yuan.