products. The company is mainly engaged in R&D, design, production and sales of electronic security products such as video surveillance systems. The main products include video surveillance systems, transmission products, and entry/exit control products. Among them, the core product matrix switcher, fastball, and optical transceiver ranked first, first, and second in the domestic market share in 2008, respectively. demand. The company's products are widely used in public security, transportation, water conservancy, finance, electricity and other industries, as well as in industrial and commercial facilities, municipal administration, community, home and other fields. Among them, urban security and public security systems, highways, rail transit systems, commercial and intelligent buildings, stadiums and conference centers accounted for 26.2%, 9.3%, 12.2%, 24.0% and 7.1% of sales revenue, respectively. Revenue and profit. From 2007 to 2009, the company's revenue was 278 million yuan, 3.15 million yuan, and 377 million yuan respectively, with a compound annual growth rate of 16.39%. Net profit for the same period was 64.8 million yuan, 57.72 million yuan, and 80.17 million yuan, respectively, with a compound growth rate of 11.23%. gross profit margin. The company's comprehensive gross margin from 2007 to 2009 and the first half of 2010 was 50.27%, 52.96%, 58.66%, and 57.64%, respectively. The gross margin was high and showed a slight upward trend, and the company's gross margin level was slightly higher than that of other companies, indicating the high added value of the company's products. Fund-raising projects. The company raised funds for four projects, including technical upgrading and expansion of video surveillance products, technical upgrading and expansion of optical transceiver series products, marketing network construction, and R&D center technical transformation and expansion. After the fund-raising project was completed, the company's production capacity for fastballs, matrices, optical transceivers and cameras increased by 158.46%, 190.84%, 163.63%, and 392.60%, respectively. Profit forecasting and investment advice. The company's EPS from 2010 to 2012 is estimated to be 0.78 yuan, 1.36 yuan, and 1.91 yuan, respectively. The company's issuance price is 53.80 yuan. The corresponding dynamic PE for the next three years is around 69 ×, 39 ×, and 28 ×, respectively. Investors are advised to purchase carefully. A reasonable target price for the next 6 months is around 54.4 yuan. Risk warning. The company faces the risk of a decline in corporate profitability due to increased competition in the industry.