Matters: Third-quarter results increased by 32.9%, in line with expectations, and maintained purchases. Taiji Co., Ltd. (300046) released its three-quarter report on October 18. The company achieved revenue of 239 million yuan in January-September, an increase of 26.29% over the previous year. ; The net profit attributable to the parent company was 68.368 million yuan, an increase of 32.90% over the previous year; the corresponding EPS was 0.48 yuan. The performance was in line with our expectations, maintaining the buy investment rating. Main opinion: The third quarter results exceeded expectations, and market demand was strong. The large increase in the company's revenue is due to the company grasping the growing demand of the high-power semiconductor market, expanding and optimizing production capacity, and leveraging the advantages of variety and scale. At the same time, we are actively promoting the construction of fund-raising projects, giving full play to the advantages of variety and scale; promoting different products for customers in different fields to meet their specific needs. The net profit growth rate was much higher than the revenue growth rate due to a decrease in the company's overall rate level. Also, due to the fact that in August, the company adjusted expenses such as advertising fees and roadshow expenses incurred during the listing process into the company's profit and loss last year in accordance with the Ministry of Finance's requirements at the end of last year, which in turn lowered last year's results. Overall, the company's performance has improved compared to the semi-annual report, reflecting the overall positive trend in the high-power semiconductor industry. It also confirms the gradual restoration of profit growth capacity against the backdrop of further strengthening the company's marketing capabilities and product recognition. Management capacity has been enhanced, and the scale effect has contributed to a reduction in fees. We estimated the company's actual management expenses from 5.70% to 5.17%, and the actual operating expenses ratio decreased from 4.84% to 4.74%, all of which improved slightly. While experiencing a continuous upward channel in raw material prices, although the company's gross margin declined, it still maintained a high level of 38.49%. This is due not only to the scale effect brought about by the expansion of the company's production capacity, but further improved management capabilities have also relieved the pressure of rising costs to a certain extent. As future production of fund-raising projects bring about further expansion of production capacity, there is still room for further improvement in the company's profitability. I am still optimistic about the prospects of the high-power semiconductor market, and I will renew my purchase. We continue to be optimistic about the market prospects of the high-power semiconductor sub-industry in the country's vigorous promotion of energy saving and emission reduction, as well as the import substitution space brought to it by the company's technological advantages. Maintaining the profit forecast, the EPS that the company can achieve in 2011-2013 was 0.74 yuan, 0.95 yuan, and 1.25 yuan, respectively, corresponding to 23.15 times, 18.03 times, and 13.70 times PE, respectively. The company's reasonable value is 23.75 yuan, corresponding to 25 times PE in 2012, maintaining the purchase rating.