An established leading company for Roots blowers. The company has a production history of Roots blowers for more than 40 years. Its core product, Roots blowers, has maintained the largest market share in the domestic market for 11 consecutive years, and also has the ability to design, manufacture, sell and service complete product lines such as mills, centrifugal blowers, slurry pumps, and complete pneumatic conveying systems. Downstream demand in traditional industries has maintained steady growth, and downstream demand in emerging markets is developing rapidly. The company's core product, the Roots blower, is mainly used in traditional downstream industries such as chemicals, cement, and steel, gradually replacing imported products. Currently, orders are full and are maintaining an upward trend. With the further implementation of national energy saving and emission reduction policies, demand in emerging market industries such as sewage treatment and gas transportation is growing rapidly. Brand advantages are prominent, and R&D technology and profitability are highly competitive. The competitive pattern in the Roots blower industry is stable. The company's Roots fan products have bargaining power, the gross margin level remains stable, and has always been higher than other strong competitors. The company invests about 5% of its revenue in research and development every year to continuously improve technology, develop and launch new energy-saving fans, and new energy-saving models have already entered the small-batch production stage. Roots fan technology is in a leading position in the world. The high cost performance ratio is conducive to overseas competition, and exports are expected to maintain rapid growth. In 2009 and 2010, the company's overseas business revenue achieved rapid growth of 76% and 67%. In order to expand overseas markets, the company continues to develop new fans that meet European and American standards, and it is expected that overseas revenue will continue to grow rapidly in the next few years. The fund-raising project adjusts the company's product structure, expands production capacity, and relieves financial pressure. The company has been limited in the past few years to ease pressure on debt ratios, and its ability to expand operations is limited. Currently, the balance ratio has been reduced, and it is expected that production capacity bottlenecks can be solved after financing. 1) The R&D and production project for the new Roots blower not only transforms the product line structure into a new model that can meet the needs of energy saving and environmental protection, but also solves the current production capacity bottlenecks of existing models; 2) The centrifugal blower project solves the current production capacity limitations caused by public production lines for Roots and centrifugal blowers, and forms a professional production line to help companies expand the centrifugal blower market and further improve the product line; 3) The pneumatic conveying production base establishes an independent assembly and commissioning workshop to meet the growing market demand for pneumatic conveying system equipment manufacturing. The recommended inquiry range is 10.00-12.22 yuan. We forecast the company's earnings per share for 2011-2013 to be 0.56 yuan, 0.68 yuan, and 0.86 yuan, respectively; taking into account the current valuation situation of the company and the company's industry status, we give the PE inquiry range 18-22 times that of 2011, corresponding to the inquiry range of 10.00 to 12.22 yuan. Risk warning. (1) Demand is weak due to a decline in the growth rate of fixed asset investment; (2) raw material prices fluctuate.