Investment highlights: Annual report results exceed expectations. In 2013, the company's total revenue increased 28.4% year on year to 4.807 billion yuan, and net profit attributable to shareholders increased 68.1% year on year to 434 million yuan, achieving EPS of 0.40 yuan. The acquisition of 204 million yuan in land collection and savings was an important factor in the sharp increase in net profit for the current period. The company achieved net profit attributable to shareholders of 250 million yuan after deducting non-recurring profit and loss in 2013, an increase of 20.2% over the previous year. Bayi Cable, which completed the acquisition in 2012, had consolidated net profit of 35.7 million yuan in 2013, exceeding current forecast performance by 34.7%, and operating well. The company plans to distribute a cash dividend of 1.3 yuan (tax included) to all shareholders for every 10 shares, and will not distribute stock dividends or increase share capital from capital reserves. Consolidation of industry competitiveness. Products such as 220kV cables and 110kV cables and accessories continue to lead the domestic market; 500kV large-length, large-section cross-linked cables have been recognized by the State Grid and have been supplied one after another. Furthermore, the company developed the first large-length optoelectronic composite submarine cable for CNOOC, breaking the monopoly of international cable giants; the first to develop mining cables for coal mining machines and variable frequency mining cables; and the first to develop 35 kV EPDM rubber power cables. Optimistic about overseas business development is beneficial to business structure optimization. According to the announcement, in January 2014, the company won the bid for the Kuwait National Petroleum Corporation 300kV cable supply and installation project commissioned by China Wire and Cable Import and Export Co., Ltd., with an amount of about 320 million yuan. The project expert review team consists of Siemens and Kuwait's power supply departments. Winning the bid provided an important achievement for the company to further develop overseas markets in the future. In addition, the company has passed system audits such as Saudi Aramco, Shell, and the United Kingdom; the products have been applied in many countries such as Russia, Pakistan, Australia, Iraq, the United States, Singapore, Thailand, India, Greece, and Sudan. We anticipate that the contribution of overseas business to main revenue is expected to increase from 2.27% in 2013 to around 8% in 2014. Since the gross margin of overseas business is generally high (20.45% in 2013), its rapid development is beneficial to the company's overall profit level. Committed to building turnkey design capabilities. Following the establishment of the wholly-owned subsidiary “Hanhe Electric Power Design” in October 2012, the company acquired 100% of Hanhe Electric's shares and 4% of Fujian Yongfu Engineering Consulting Company's shares in 2013, which helped enhance the company's capabilities in power engineering design and optimize the company's business chain. Give it an “gain” rating. We expect that in 2014 and 2015, the company will achieve EPS of 0.31 yuan and 0.36 yuan, respectively, corresponding to 25.8 times and 22.0 times P/E. In view of the positive progress made by the company in market structure optimization, production and marketing of high-end products, and business model innovation, etc., the future development prospects are positive, and the rating was upgraded to “increase holdings.” Risk warning: 1) The growth rate of investment in power construction may slow down, and market competition may be intense; 2) business expansion may fall short of expectations; 3) raw material prices fluctuate or affect final profits.