The company announced the sale of 51% of the shares in Baishupo coal mine. After deducting various debts, the company will receive a transfer amount of 350 million yuan. After deducting costs, the transaction made a profit of 23.46 million yuan. The deal is expected to close within this month. At that time, the company will focus on the field of coal machine manufacturing. Under the guidance of major customer strategies, the company's coal machine business is expected to increase significantly. Considering the development of the company's new businesses such as coal mining machines, tunneling machines, and lifeguards, the company's performance this year will be a breakthrough. Considering the dilution of share capital, we expect the 2012 earnings per share of the company's coal mining business to be 0.34 yuan, 18 times the 2012 price-earnings ratio, corresponding to the stock price of 6.46 yuan. The company's lifejacket business is expected to contribute 0.05 yuan per share, giving a price-earnings ratio of 23 times, and a corresponding share price of 1.15 yuan. Based on the above analysis, we lowered the company's target price to 7.61 yuan, corresponding to a price-earnings ratio of 19.4 times in 2012, maintaining the buying rating.