The company is one of the marine casting enterprises in China. In addition to marine products, electricity, construction machinery, and petrochemical products are relatively stable. The fund-raising project progressed steadily, laying the foundation for the company to improve its performance in 2012. The company is mainly engaged in four categories of casting products, marine, electric power, construction machinery and petrochemicals; of these, marine products account for more than 70%. In 2011, the company increased its production capacity from 33,000 tons in 2010 to about 40,000 tons through shift adjustments and other methods. Judging from the shipping industry's order situation, the future development of the shipbuilding industry is relatively optimistic. The shipbuilding industry can be divided into three sub-industries: shipbuilding, ship support, and ship maintenance and dismantling. Judging from the current situation, domestic shipyard construction is basically saturated, but the shipbuilding industry is still seriously lagging behind. The ship localization rates in Japan and South Korea are over 90% and 80%, respectively, while China is less than 50%, so there is huge room for the future. However, domestic marine medium and low speed diesel engines originally mainly depended on imports. In 2010, many domestic diesel engine manufacturers began mass production of medium and low speed marine diesel engines. The company's sales revenue for diesel engine parts in marine products in 2010 was about 70 million, up from the previous 30 to 40 million, and is expected to reach more than 100 million in 2011. Electricity is mainly the rotors, magnetism, and spindles of hydropower and thermal power; in construction machinery, mainly shafts and crane hooks for engineering use, and the company's main hook customers include Taiyuan Heavy Industries, Zhenhua Heavy Industries, and Huaxin Electromechanical in Hangzhou. Petrochemical products are mainly active gears and other accessories for oil platforms, and are mainly sold to companies such as National Oil Well, Yantai Fengshun, and Zhenhua Heavy Industries. Kookmin Oil Well is a leading global producer of oil rigs, and the company has maintained a cooperative relationship with Kookmin Oil Well for many years. However, due to the huge investment in offshore platform projects, the design and construction cycles are very long, so it is difficult to reflect short-term benefits. However, offshore products will be a segment that the company will focus on in the future. Civil works for the company's fund-raising project are expected to begin in July, and contracts for the procurement of related equipment have already exceeded 100 million yuan. It is expected that the construction of the steel structure plant will be completed by the end of 2011, some equipment will arrive, and installation and commissioning will begin, and small-batch trial production of some equipment in the first half of 2012, and construction will be completed in the second half of 2012. However, once the fund-raising project is completed, it can save customers at least 5%-8% of costs. The company has signed intentional contracts with many customers; currently, the company's products weigh more than 30,000 tons, while the finishing project is expected to be 20,000 tons, guaranteeing future sales of finishing projects. Profit forecast. We believe that in addition to its own growth, the company's main ship parts industry also has plenty of room for import substitution, and that the company's fund-raising projects have entered the field of deep processing, which can further enhance the company's profitability and ensure the company's steady strengthening and refinement. We expect the company's EPS for 2011, 2012, and 2013 to be: 0.506 yuan, 0.795 yuan, and 1.212 yuan, respectively. For the first time, we gave it an “increase in holdings” rating, giving it 23 times PE in 12 years, with a target price of 18.28 yuan.