The company is a leading domestic silicon steel stamping enterprise, and listing will take the company one step further from its strategic goals for future development. The stator rotor punch and iron core are the core components of a motor and are known as the “heart” of the motor. The company is not only satisfied with its leading position in the domestic industry, so it has established a clear development vision - “enhance customer value with professionalism and excellent service, and become the world's most competitive supply base for motor stator and rotor presses and iron cores.” The two major driving factors are improving, and the prospects for the silicon steel stamping industry are bright. The development prospects of the industry are mainly affected by two major factors. One is the market demand situation and development trend of downstream motor products; the second is that static rotor core motor companies are shifting from independent production to external specialized production. There is still plenty of room for growth in the installed capacity of motors in China, and in the future, emerging hot products such as high-efficiency motors, drive motors for new energy vehicles, and traction motors will further boost the market. The market compound growth rate is expected to be 19.2% in the next five years. On the other hand, the replacement of stator cores by professional manufacturers is beneficial to industry development, which is the general trend. Under a neutral assumption, it is estimated that in 2015, the demand for outsourced fixed rotor stamping and iron cores will exceed 2.3 million tons, with a five-year compound growth rate of more than 30%. Long-term efforts for excellence have created many competitive advantages for the company. Since its establishment, the company has specialized in the manufacture of motor stator rotor presses and iron cores. We believe that its greatest core advantage is that it has gone higher and farther than its competitors on the path of specialization. In a situation where the vast majority of manufacturers can only use purchased equipment for manufacturing and processing according to drawings, the company has carried out technical exchanges and cooperation in the development and design of die cores with advanced motor manufacturers, while independently designing and manufacturing a large number of molds and equipment. Business expertise has given the company a clear competitive advantage in terms of technology, cost, and market. There is a possibility that the company's future growth will exceed expectations. The company's high-efficiency motor core products are highly profitable. Currently, they account for about 30%, and will increase in the future with the promotion of high-efficiency motors in China. This year, the state increased subsidies for high-efficiency motors. Once the promotion process exceeds expectations, it will greatly benefit the company. Investment advice: Increase your holdings. We expect the company's EPS for 2011-2013 to be 0.68 yuan, 0.91 yuan, and 1.13 yuan, respectively, and the corresponding PE is 24 times, 19 times, and 15 times, respectively. Given the company's leading position and the first-mover advantage of being the first company in the industry to go public, it was given an increase in holdings rating.